Vote Smart's Synopsis:

Vote to pass a bill that establishes a $10,000 interest free housing loan program for certain public employees in eligible areas.

Highlights:

• Establishes an assistance program that makes available to qualified applicants a $10,000 zero-percent mortgage loan that can be used toward the purchase or reservation of a family home in an eligible municipality (Sec. 3).

• Requires an individual to meet certain criteria in order to qualify for the loan, which includes the following (Secs. 2-4):

• The individual must use the loan towards the purchase of a property that will remain as their primary residence for at least 5 years;

• The individual must be currently employed as a full-time and paid law enforcement officer, firefighter, public school teacher or sanitation worker in the eligible municipality where they wish to purchase the home; and

• The individual must have one year of creditable service in the pension fund.

• Specifies that loans will be forgiven at a rate of 20% per year for 5 years and that the standing unforgiven balance will become due and payable if a recipient sells or vacates the property as their primary residence before 5 years (Sec. 3).

• Authorizes the governing body of an eligible municipality to determine whether an ordinance participates in the assistance program and amend the number of years of employment required for eligibility (Sec. 4).

• Appropriates $5 million to put this bill into effect from the General Fund of the New Jersey Housing and Mortgage Finance Agency (Sec. 6).

Full Bill Text