There are two bills in the state Legislature dealing with foreclosures that could severely impact our communities.
The first proposed law, A-3246, requires that the New Jersey Housing and Mortgage Finance Agency (NJHMFA) “create a program to assist municipalities in purchasing foreclosed properties for affordable house use.”
The companion bill, A-3247, proposes to encourage the donation of foreclosed residential properties to municipalities for use as affordable housing. This would be accomplished by allowing an entity such as a bank, a credit union, or a mortgage company, to obtain a certificate that would entitle it to a New Jersey tax credit up to $1,000,000 “equal to the true value of the donated residential real property, as calculated by the municipal tax assessor.”
Once a municipal government purchases or receives a donation of housing, the NJHMFA “shall ensure that affordability controls are placed on any property being credited.” A-3247 further provides that “the agency shall seek to foster use of the tax credit and to make the tax credit simple to apply for and simple to use.”
These bills present a danger to all communities in New Jersey.
Subsidized housing without added subsidies to cover the costs of living in the community could often lead to properties being inadequately maintained.
The placements would add tax burdens to other residents due to additional demands on the school system and social services.
In the case of private residential communities there also is concern about the ability of those placed in foreclosed properties to pay maintenance fees and assessments.
For age-restricted communities there is the further issue of whether the placements would have to conform to a community’s age requirements.
Irv Leveson
Secretary Jackson Legislative Action Committee
Jackson