New Jersey Assembly Bill A3409

New Jersey 2022-2023 Regular Session

• Introduced: 3/7/22
• Refer: 3/7/22

Caption

Provides for voluntary contributions to the "Homelessness Prevention Program" through real estate sales.

Impact

If passed, A3409 will amend the existing legislation regarding the realty transfer tax in New Jersey, specifically allowing for additional fees to be directed toward homelessness prevention. With an increasing number of renters in precarious housing situations, the program seeks to provide crucial support during a time of economic difficulty. The bill intends to address the gaps in funding caused by federal cutbacks, effectively expanding state efforts to assist those in need of rental assistance.

Summary

Assembly Bill A3409 aims to enhance funding for the 'Homelessness Prevention Program,' which provides vital rental assistance to help tenants avoid eviction. The bill introduces a system that allows property sellers to make voluntary contributions during real estate sales, which would be collected at the same time as the standard realty transfer taxes. These contributions can be made in increments of $10 and aim to supplement the existing budget for the program, which has faced financial constraints due to federal funding cuts and rising rental prices outpacing wage growth.

Contention

While the bill has received support from various stakeholders who view it as a necessary measure to combat homelessness, there may be discussions surrounding the nature of voluntary contributions versus mandatory taxes. There could be arguments regarding whether this approach shifts too much responsibility onto property sellers instead of addressing broader housing policy issues. Additionally, concerns over the effectiveness of these contributions in significantly alleviating the homelessness crisis in the state may arise during legislative discussions.