ASSEMBLY APPROPRIATIONS COMMITTEE

STATEMENT TO

[First Reprint]

SENATE, No. 1446

STATE OF NEW JERSEY

DATED:  JUNE 24, 2024

      The Assembly Appropriations Committee reports favorably Senate Bill No. 1446 (1R).

      This bill modifies a down payment assistance loan program, administered by the New Jersey Housing and Mortgage Finance Agency (HMFA), for the benefit of first-generation and first-time homebuyers. 

      The bill modifies the loan program’s definition of "first-generation homebuyer" so that a loan program applicant would be able to meet this definition if a member of their household has acquired a home in the last three years, so long as the applicant, and their spouse or domestic partner, have not.  The bill further modifies that definition to include individuals who were an emancipated youth, or were designated as a homeless, unaccompanied youth as defined in the "McKinney-Vento Homeless Assistance Act," (42 U.S.C. s.11434a).

      The bill modifies the loan program’s definition of "first-time homebuyer" so that the definition does not restrict ownership of residential real property within the previous three years, as long as an applicant is using a mortgage product offered by HMFA through an HMFA homebuyer program to purchase single-family housing, and has a gross household income that does not exceed a limitation determined by HMFA. 

      A first-time homebuyer is to be required to commit to use a home purchased through the loan program as their principal residence for five years following the purchase, and, and provided by this bill, for these five years retain the first mortgage product offered by the agency through an agency homebuyer program.

      The bill adjusts the loan award to be offered though the loan program from $15,000 to an amount not to exceed $20,000. 

      The bill modifies a homebuyer education requirement for participation in the loan program to provide HMFA with more discretion over how to administer the coursework. 

      The bill also adjusts the regulatory guidance requirements for the loan program, requiring HMFA to develop guidelines instead of promulgating rules and regulations. 

      As reported by the committee, Senate Bill No. 1446 (1R) is identical to Assembly Bill No. 2824 (1R), which was also reported by the committee on this date.

FISCAL IMPACT:

      The Office of Legislative Services (OLS) concludes that the bill would lead to an indeterminate increase in annual State expenditures.  Expanding the population that is eligible for down payment assistance and increasing the maximum size of the loan to $20,000 would increase annual program costs.