Signed by Governor Phil Murphy

Vote Smart's Synopsis:

Vote to pass a bill that establishes a zero-interest, forgivable loan program to provide down-payment assistance for some first-time homebuyers and a pilot program for developers to rehabilitate existing homes and build new affordable homes.

Highlights:

• Defines terms related to the commissioner of community affairs and first time home-buyers (Sec. 1).

• Establishes a zero interest forgivable loan award of not less than $7,000 (Sec. 2). 

• Authorizes the executive director to have the ability to disseminate regulatory guidance and guidelines on the loan program (Sec. 2).

• Appropriates funding from the state general fund for the loan program  with no less than 50% of this funding going to first-generation homebuyers (Sec. 2). 

• Establishes the Resilient home construction pilot program for the purposes of funding the rehabilitation of existing homes to construct new affordable housing (Sec. 2). 

• Authorizes the establishment for an application process for new homes and requirements that these new homes meet the following criteria (Sec. 3):

• Is not located on a floodplain; 

• Is sold at price not to exceed 120% a buyers gross income;

• The prospective buyer has been affected by a storm or natural disaster;

• The developer includes a purchase discount; 

• The houses contain a minimum period of affordability. 

• Authorizes local governments to apply for funding for developers to renovate and rehabilitate new homes and construct new affordable housing (Sec. 3). 

• Authorizes the use of funds from the “American Rescue Plan Act of 2021” for the purposes of this act (Sec. 6).

Full Bill Text