New Jersey Assembly Bill A2785

New Jersey 2022-2023 Regular Session

• Introduced: 2/28/22
• Refer: 2/28/22

Caption

"New Jersey American Dream Act"; appropriates $25 million to provide down payment and home repair assistance to low and moderate income first-time homebuyers.

Impact

The implementation of A2785 will necessitate an annual appropriation of $25 million from the state's General Fund to support the grant program for at least four years. This recurring funding is intended to subsidize the costs of administration and disbursement of grant funds. The Division of Housing and Community Resources within the Department of Community Affairs is designated to administer this program, which is expected to enhance homeownership rates among financially disadvantaged populations and stimulate local economies through increased housing activity and stability.

Summary

Assembly Bill A2785, known as the 'New Jersey American Dream Act', aims to foster homeownership among low and moderate income families. Specifically, it establishes the 'New Jersey American Dream Program', which provides financial assistance in the form of grants to first-time homebuyers for down payment and home repair costs associated with acquiring and rehabilitating single-family housing. The bill specifies that the maximum grant will not exceed six percent of the home's purchase price or $10,000, whichever is greater, and requires recipients to undergo at least eight hours of homebuyer counseling. This initiative is designed to make homeownership more accessible for low-income households, defined as those not exceeding 80% of the area median income.

Contention

Some points of contention surrounding the bill may stem from budget priorities, particularly regarding the ongoing funding commitment from the state. Critics may question the sustainability of such financial allocations amidst other pressing state needs. Supporters argue that investing in homeownership for lower-income families can yield long-term economic benefits and contribute to community stability. Additionally, the requirement for counseling may be seen as a positive measure to ensure that first-time buyers are adequately prepared to sustain homeownership, though some may view it as an additional barrier to access.