New Jersey Senate Bill S3002

New Jersey 2022-2023 Regular Session

• Introduced: 9/22/22
• Refer: 9/22/22

Caption

Establishes Residential Property Repair Program; appropriates $30,000,000.

Impact

The eligibility for the program is confined to households with an income not exceeding 120 percent of the area median income or first responders who reside in or plan to buy properties in eligible municipalities. This focus seeks to improve living conditions, particularly in communities that may be underserved or need revitalization. Additionally, households must commit to living in the property for at least five years post-repair to preserve the intent of the program, ensuring that funds are utilized effectively in stabilizing these communities.

Summary

Senate Bill S3002 establishes the Residential Property Repair Program through the New Jersey Housing and Mortgage Finance Agency (HMFA). This program is designed to provide financial assistance in the form of low-interest loans to eligible homeowners and prospective homeowners for the correction of home defects. The bill dedicates $30 million in funding from the federal American Rescue Plan Act of 2021, targeting properties in specific 'eligible municipalities' that meet the state's urban aid criteria for the fiscal year 2022. These municipalities must also maintain an abandoned property list.

Contention

While the bill is largely supportive of helping low-income families and first responders, some contention may arise regarding the definitions and regulations established for what constitutes a 'home defect.' Concerns could also be raised about the stipulation that funds will not supplant existing resources for home repair, potentially limiting the program's applicability or enhancement of other ongoing initiatives. The provision of requiring eight hours of homebuyer counseling before disbursement of funds might be viewed as an additional bureaucratic step, although it is intended to prepare homeowners for responsible ownership and maintenance.