Vetoed by Governor Chris Christie

Vote Smart's Synopsis:

Vote to pass a bill that establishes the New Jersey Foreclosure Transformation Program.

Highlights:

• Establishes the New Jersey Foreclosure Transformation Program within the New Jersey Housing and Finance Mortgage Agency as a temporary program that is set to expire on December 31, 2017 (Sec. 2).

• Requires the New Jersey Foreclosure Transformation Program to purchase foreclosed residential properties from institutional lenders and dedicate them for occupancy for "low-income" and "moderate income" families (Secs. 2 & 4).

• Defines “moderate income” as more than 50 percent, but less than 80 percent, of the median household income for households of the same size within the same region (Sec. 3).

• Defines “low income” as 50 percent or less of the median household income for households of the same size within the same region (Sec. 3).

• Authorizes the New Jersey Foreclosure Transformation Program the following powers, but not limited to (Sec. 5):
• Enter into contracts or loans with qualified community development financial institutions to negotiate and purchase properties and mortgage assets from institutional lenders; and
• Acquire, hold, lease, mortgage, maintain, and dispose of, at public or private sale, property using any legal private sector methods.

• Requires the New Jersey Foreclosure Transformation Program to provide the municipality in which the property is located a 45 day period to consent to the sale or opt to purchase the property instead (Sec. 7).

• Requires the municipality to do the following in order to purchase property under this program (Sec. 8):
• Sell or lease the housing unit within 60 days of the purchase; and
• Agree that the housing will remain available to low and moderate income households for a 30 year period.

• Authorizes the municipality to use any available funding sources to buy eligible properties or mortgage assets through the Housing and Finance Mortgage Agency (Sec. 7).

• Establishes a Foreclosure to Affordable Housing Transformation Fund that is a non-lapsing and revolving fund to hold all funds required to implement this act (Sec. 11).

• Authorizes a municipality that has at least 10 units of foreclosed housing that have remained unsold for at least 60 days to withhold transfer of fees to the Foreclosure to Affordable Housing Transformation Fund (Sec. 10).

Full Bill Text

Vote Smart's Synopsis:

Vote to pass a bill that establishes the New Jersey Foreclosure Transformation Program.

Highlights:

• Establishes the New Jersey Foreclosure Transformation Program within the New Jersey Housing and Finance Mortgage Agency as a temporary program that is set to expire on December 31, 2017 (Sec. 2).

• Requires the New Jersey Foreclosure Transformation Program to purchase foreclosed residential properties from institutional lenders and dedicate them for occupancy for "low-income" and "moderate income" families (Secs. 2 & 4).

• Defines “moderate income” as more than 50 percent, but less than 80 percent, of the median household income for households of the same size within the same region (Sec. 3).

• Defines “low income” as 50 percent or less of the median household income for households of the same size within the same region (Sec. 3).

• Authorizes the New Jersey Foreclosure Transformation Program the following powers, but not limited to (Sec. 5):
• Enter into contracts or loans with qualified community development financial institutions to negotiate and purchase properties and mortgage assets from institutional lenders; and
• Acquire, hold, lease, mortgage, maintain, and dispose of, at public or private sale, property using any legal private sector methods.

• Requires the New Jersey Foreclosure Transformation Program to provide the municipality in which the property is located a 45 day period to consent to the sale or opt to purchase the property instead (Sec. 7).

• Requires the municipality to do the following in order to purchase property under this program (Sec. 8):
• Sell or lease the housing unit within 60 days of the purchase; and
• Agree that the housing will remain available to low and moderate income households for a 30 year period.

• Authorizes the municipality to use any available funding sources to buy eligible properties or mortgage assets through the Housing and Finance Mortgage Agency (Sec. 7).

• Establishes a Foreclosure to Affordable Housing Transformation Fund that is a non-lapsing and revolving fund to hold all funds required to implement this act (Sec. 11).

• Authorizes a municipality that has at least 10 units of foreclosed housing that have remained unsold for at least 60 days to withhold transfer of fees to the Foreclosure to Affordable Housing Transformation Fund (Sec. 10).

Full Bill Text