Bill Text: NJ S338 | 2022-2023 | Regular Session | Introduced

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Bill Title: Provides closing credit for resident first-time homebuyers; appropriates $20 million.

Spectrum: Partisan Bill (Democrat 1-0)

Status: (Introduced - Dead) 2022-03-07 - Referred to Senate Budget and Appropriations Committee [S338 Detail]

Download: New_Jersey-2022-S338-Introduced.html

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SENATE, No. 338

STATE OF NEW JERSEY

220th LEGISLATURE

 

PRE-FILED FOR INTRODUCTION IN THE 2022 SESSION

 

 

Sponsored by:

Senator  TROY SINGLETON

District 7 (Burlington)

 

 

 

 

SYNOPSIS

     Provides closing credit for resident first-time homebuyers; appropriates $20 million.

 

CURRENT VERSION OF TEXT

     Introduced Pending Technical Review by Legislative Counsel.

  

An Act providing a closing credit for resident first-time homebuyers, supplementing P.L.1983, c.530 (C.55:14K-1 et seq.), and making an appropriation.

 

     Be It Enacted by the Senate and General Assembly of the State of New Jersey:

 

     1.    a.  Notwithstanding the provisions of any law to the contrary, the agency shall, to the extent funding is available pursuant to section 2 of P.L.    , c.    (C.       ) (pending before the Legislature as this bill), or any other funding is made available for the same purposes, provide cost credit, or reimburse lender credit offered by the originating lender of one percent of the home purchase price to a resident first-time homebuyer who:

     (1)   meets the eligibility requirements for, and participates in, the agency's single family mortgage programs; and

     (2)   completes a homebuyer counseling course offered by the federal Department of Housing and Urban Development or another course with a housing counselor approve by the agency.

     b.    As used in this section, "resident first-time homebuyer" means a natural person, or the unit of spouses considered as joint tenants or tenants by the entirely who is not and has never been the owner of, or holder of an ownership interest in, residential property in this State, exclusive of any interest as a stockholder or partner in a corporation or limited partnership, or as trustee for another person or person, or qualifies for a loan under subsection (d) of 26 U.S.C. s.143.

 

     2.    There is appropriated from the General Fund to the New Jersey Housing and Mortgage Finance Agency the sum of $20,000,000 for the agency to provide the closing cost credit to a resident first-time homebuyer who meets the qualifications described in section 1 of P.L.    , c.    (        ) (pending before the Legislature as this bill).

 

     3.    This act shall take effect immediately.

 

 

STATEMENT

 

     This bill would provide a closing credit for certain resident first-time homebuyers.  Specifically, the bill provides that for the duration of the funds appropriated under this bill and through any subsequent appropriation from the General Fund, a closing cost credit of one percent of a home purchase price would be covered for a resident first-time homebuyer who both meets the eligibility requirements and participates in the New Jersey Housing and Mortgage Finance Agency's ("HMFA") First-Time Homebuyer Mortgage Program or Down Payment Assistance Program, or both.  Additionally, a resident first-time homebuyer would be required to attend a homebuyer counseling course offered by the federal Department of Housing and Urban Development or meet with a housing counselor approved by the HMFA.

     This bill would appropriate from the General Fund to the HMFA the sum of $20 million for the use by the HMFA to provide the closing cost credit to a resident first-time homebuyer.