New Jersey Senate Bill S944

New Jersey 2022-2023 Regular Session

• Introduced: 1/31/22
• Refer: 1/31/22

Caption

Establishes "Police Officer, Firefighter, Public School Teacher, Corrections Officer, and Sanitation Worker Home-buyer Assistance Act"; appropriates $5 million.

Impact

The program requires that the home purchased remains the primary residence for a minimum of five years for the loan to be forgiven. Eligibility is extended to full-time public service personnel and demands accountability regarding their housing status, with penalties for selling or vacating the property before the five-year period unless circumstances like death or divorce arise. This initiative directly impacts housing accessibility for critical service workers in designated neighborhoods, aiming to promote stability and commitment within these communities.

Summary

Senate Bill S944, formally known as the 'Police Officer, Firefighter, Public School Teacher, Corrections Officer, and Sanitation Worker Home-buyer Assistance Act', aims to provide down-payment assistance to designated public service personnel to encourage them to purchase homes in areas where they serve. The bill establishes a program facilitated by the New Jersey Housing and Mortgage Finance Agency (NJHMFA) that allocates $5 million from the state General Fund to support this initiative. Qualified individuals are eligible to receive zero percent interest second mortgage loans of up to $10,000 for down payments and closing costs related to buying single or two-family homes.

Contention

One notable point of contention revolves around the eligibility criteria, particularly the focus on specified personnel, which has prompted discussions on how such measures may exclude other essential workers or community members. Additionally, some municipalities may choose to impose further requirements based on employment longevity and neighborhood exclusivity, raising concerns about unequal access to the program. Critics argue that such limitations could unintendedly reinforce socio-economic divides within communities, while proponents contend that targeting specific roles is necessary to bolster the workforce in public service sectors.