Provides closing credit for resident first-time homebuyers; appropriates $20 million.
Impact
The bill allocates $20 million from the General Fund to the HMFA to fund these closing credits. This financial assistance aims to alleviate some of the costs associated with purchasing a home, potentially increasing the rate of homeownership among first-time buyers. By easing the financial burden of closing costs, the state hopes to stimulate the housing market and support a diverse population of new homeowners who may otherwise struggle with affordability.
Summary
Bill S338 is designed to assist resident first-time homebuyers in New Jersey by providing a closing cost credit of one percent of the home purchase price. This initiative aims to make homeownership more accessible to individuals who have never owned residential property in New Jersey. To benefit from this program, eligible individuals must participate in approved mortgage programs, such as those offered by the New Jersey Housing and Mortgage Finance Agency (HMFA), and complete a homebuyer counseling course. The intent is to educate potential homeowners and ensure that they are prepared for the responsibilities of homeownership.
Contention
While the bill is generally seen as a positive step towards promoting homeownership, there may be concerns regarding the long-term sustainability of funding and whether this level of appropriated funds will adequately support the demand for such credits. Additionally, there could be discussions surrounding the effectiveness of the mandated housing counseling courses, as different communities may require varying levels of guidance based on their unique circumstances. Stakeholders may raise questions about the criteria for eligibility and the effectiveness of the HMFA in managing these funds and programs.
"New Jersey American Dream Act"; appropriates $25 million to provide down payment and home repair assistance to low and moderate income first-time homebuyers.
To provide appropriations from the General Fund for the expenses of the Executive, Legislative and Judicial Departments of the Commonwealth, the public debt and the public schools for the fiscal year July 1, 2023, to June 30, 2024, and for the payment of bills incurred and remaining unpaid at the close of the fiscal year ending June 30, 2023; to provide appropriations from special funds and accounts to the Executive and Judicial Departments for the fiscal year July 1, 2023, to June 30, 2024, and for the payment of bills remaining unpaid at the close of the fiscal year ending June 30, 2023; to provide for the appropriation of Federal funds to the Executive and Judicial Departments for the fiscal year July 1, 2023, to June 30, 2024, and for the payment of bills remaining unpaid at the close of the fiscal year ending June 30, 2023; and to provide for the additional appropriation of Federal and State funds to the Executive and Legislative Departments for the fiscal year July 1, 2022, to June 30, 2023, and for the payment of bills incurred and remaining unpaid at the close of the fiscal year ending June 30, 2022.