Vetoed by Governor Chris Christie

Vote Smart's Synopsis:

Vote to pass a bill that authorizes the conversion of foreclosed homes into affordable housing.

Highlights:

• Establishes the New Jersey Foreclosure Relief Corporation within the Housing and Mortgage Finance Agency to identify "eligible properties" and facilitate their purchase and dedication for occupancy or their rental for "qualified households" (Sec. 4).

• Defines “eligible property" as any residential property that is owned by an institutional lender as the result of a mortgage foreclosure (Sec. 3).

• Defines “qualified household” as a household whose income level relative to the median gross household income for households of the same size within the region in which the household is located is 1 of the following (Sec. 3):
• Very-low-income at 30 percent or less of the median gross household income;
• Low-income between 30 and 50 percent of the median gross household income; or
• Moderate-income between 50 percent and 80 of the median gross household income.

• Establishes the Foreclosure to Affordable Housing Transformation Fund within the Housing and Mortgage Finance Agency (Sec. 11).

• Authorizes the New Jersey Housing and Mortgage Finance Agency to issue bonds to fund the activities of the New Jersey Foreclosure Relief Corporation (Sec. 11).

• Requires the corporation or the corporation’s contractors to notify a municipality as soon as possible after the corporation or the corporation’s contractors enters into a contract to purchase eligible property or a mortgage asset for affordable housing (Sec.7).

• Authorizes the municipality to make any of the following decisions regarding the notice by the corporation or the corporation’s contractors within 45 days (Sec. 7):
• Consent to the corporation’s or contractor’s purchase of the eligible property;
• Withhold consent to the corporation’s or contractor’s purchase of the eligible property; or
• Opt to purchase the property in lieu of the corporation or the contractor.

• Requires any foreclosed property transformed into affordable housing by a municipality to have a 30 year deed provision which specifies that the property will remain available to households of low or moderate-income (Sec. 8).

• Authorizes a municipality to receive 2 units of credit toward the municipality’s affordable housing obligation for each unit of foreclosed property that is transformed into affordable housing by the corporation, the corporation’s contractors or the municipality using the municipality’s affordable housing trust fund (Sec. 8).

• Authorizes a municipality to earn up to 25 percent of its affordable housing obligation through the credits received from the transformation of foreclosed property to affordable housing (Sec. 8).

• Specifies that the New Jersey Foreclosure Relief Corporation will end its operations and expire on December 31, 2017 (Sec. 4).

Full Bill Text

Vote Smart's Synopsis:

Vote to pass a bill that authorizes the conversion of foreclosed homes into affordable housing.

Highlights:

• Establishes the New Jersey Foreclosure Relief Corporation within the Housing and Mortgage Finance Agency to identify "eligible properties" and facilitate their purchase and dedication for occupancy or their rental for "qualified households" (Sec. 4).

• Defines “eligible property" as any residential property that is owned by an institutional lender as the result of a mortgage foreclosure (Sec. 3).

• Defines “qualified household” as a household whose income level relative to the median gross household income for households of the same size within the region in which the household is located is 1 of the following (Sec. 3):
• Very-low-income at 30 percent or less of the median gross household income;
• Low-income between 30 and 50 percent of the median gross household income; or
• Moderate-income between 50 percent and 80 of the median gross household income.

• Establishes the Foreclosure to Affordable Housing Transformation Fund within the Housing and Mortgage Finance Agency (Sec. 11).

• Authorizes the New Jersey Housing and Mortgage Finance Agency to issue bonds to fund the activities of the New Jersey Foreclosure Relief Corporation (Sec. 11).

• Requires the corporation or the corporation’s contractors to notify a municipality as soon as possible after the corporation or the corporation’s contractors enters into a contract to purchase eligible property or a mortgage asset for affordable housing (Sec.7).

• Authorizes the municipality to make any of the following decisions regarding the notice by the corporation or the corporation’s contractors within 45 days (Sec. 7):
• Consent to the corporation’s or contractor’s purchase of the eligible property;
• Withhold consent to the corporation’s or contractor’s purchase of the eligible property; or
• Opt to purchase the property in lieu of the corporation or the contractor.

• Requires any foreclosed property transformed into affordable housing by a municipality to have a 30 year deed provision which specifies that the property will remain available to households of low or moderate-income (Sec. 8).

• Authorizes a municipality to receive 2 units of credit toward the municipality’s affordable housing obligation for each unit of foreclosed property that is transformed into affordable housing by the corporation, the corporation’s contractors or the municipality using the municipality’s affordable housing trust fund (Sec. 8).

• Authorizes a municipality to earn up to 25 percent of its affordable housing obligation through the credits received from the transformation of foreclosed property to affordable housing (Sec. 8).

• Specifies that the New Jersey Foreclosure Relief Corporation will end its operations and expire on December 31, 2017 (Sec. 4).

Full Bill Text