TRENTON, N.J. (2/21/12)--The New Jersey Senate Economic Growth Committee Thursday approved a bill that would allow a state agency to buy and deed-restrict foreclosed properties for affordable housing.
The bill, S. 1566, would establish a central agency under the state's Housing and Mortgage Finance Agency to use the State Affordable Housing Trust Fund to buy foreclosed properties, said the New Jersey Credit Union League (The Daily Exchange Feb. 17).
State Sen. Ray Lesniak (D-20) introduced the bill last week, and a companion bill was introduced Thursday by Assemblyman Jerry Green (D-22), the league said. The measure now goes to the Senate Budget and Appropriations committee before consideration in the full Senate.
The legislation would turn 10,000 foreclosed homes into 10,000 affordable homes, and the "Foreclosure Relief Corp." would give municipalities 45 days to decide whether they want the vacant properties converted to affordable housing before the corporation goes into a market rate bulk sale.