SENATE BUDGET AND APPROPRIATIONS COMMITTEE

STATEMENT TO

[First Reprint]

SENATE, No. 1430

with committee amendments

STATE OF NEW JERSEY

DATED:  June 26, 2024

      The Senate Budget and Appropriations Committee reports favorably and with committee amendments Senate Bill No. 1430 (1R).

      As amended, this bill would provide for expanded use of affordable housing voucher program funding for the purpose of homeownership expense assistance.

      The bill would require the Department of Community Affairs (DCA) to reserve a portion of the funding provided for the State Rental Assistance Program (SRAP) to establish and administer a program comparable to the federal section 8 Housing Choice Voucher Homeownership Program.  The federal section 8 Housing Choice Voucher Homeownership Program allows program participants, who would otherwise apply a voucher towards rent payments, to instead apply the voucher towards down payment assistance or principal and interest on mortgage debt, insurance, taxes, utilities, and other homeownership expenses.

      The bill would also require SRAP to reserve a portion of the funds available to it to establish and administer a program comparable to the federal Section 8 Housing Choice Voucher Family Self-Sufficiency Program, to help families achieve economic independence and reduce dependence on welfare assistance and rental subsidies, as well as to establish and administer a Home Repair Emergency Assistance Fund, to assist families with costs of necessary home repairs and other homeownership expenses over the course of their participation.

      The bill would require local housing authorities in the State that administer funding through the federal section 8 Housing Choice Voucher Program to also implement the Housing Choice Voucher Homeownership Program.  Currently, local housing authorities are permitted, but not required, to implement this program.

      The bill takes effect immediately and allows DCA to adopt, immediately, upon filing with the Office of Administrative Law, regulations to implement the provisions of the bill, to be effective for a period not to exceed one year.  The bill requires that DCA thereafter amend, adopt, or readopt the regulations in accordance with the requirements of the "Administrative Procedure Act," P.L.1968, c.410 (C.52:14B-1 et seq.).

COMMITTEE AMENDMENTS:

      The amendments provide that the bill is to take effect immediately and allow DCA to adopt immediately, upon filing with the Office of Administrative Law, regulations to implement the provisions of the bill, to be effective for a period not to exceed one year.  The bill requires that DCA thereafter amend, adopt, or readopt the regulations in accordance with the requirements of the "Administrative Procedure Act," P.L.1968, c.410 (C.52:14B-1 et seq.). 

FISCAL IMPACT:

      The Office of Legislative Services (OLS) concludes that this bill may result in a State expenditure increase for the Department of Community Affairs associated with the establishment and administration of new programs within the existing State Rental Assistance Program.

      This bill would require expanded use of the funds in the existing State Rental Assistance Program.  These uses would reduce the funds available to the other programs funded through the State Rental Assistance Program.

      The OLS finds the bill’s requirement that local housing authorities implement the federal Section 8 Housing Choice Voucher Homeownership Program may result in expenditure increases for those local entities.