The lack of homes New Jerseyans can afford is harming our residents and stifling our economy.  Community developers, housing advocates and our state’s leaders need to work together to restore balance to our housing market and to our neighborhoods.  New Jersey can and should be affordable and safe for all of our residents and attractive to employers.  We need to take advantage of the current supply of vacant and foreclosed homes to ensure neighborhood prosperity and opportunity in our state.   Our 2012 policy priorities focus on restoring foreclosed and abandoned properties in our suburbs and urban centers, and supporting the creation of new homes in appropriate places, especially those with transit opportunities.  We can move New Jersey forward, by working towards the following goals:

Transforming Foreclosed Houses into Affordable Homes (S.1566/A.2168): The NJ Residential Foreclosure Transformation Act will establish a state Foreclosure Relief Corporation, to purchase foreclosed residential properties from institutional lenders to enable municipalities and non-profits to use foreclosed properties for very-low, low, and moderate income homes, in part by using resources from local housing trust funds.  The bill establishes an expedited 45 day foreclosure procedure where property has been declared vacant. The Network continues to work to enhance foreclosure prevention measures, including implementing the Foreclosure Fairness Act.  This law protects tenants’ right to stay in their homes after foreclosure, and provides strong tools for communities to preserve and maintain homes during the foreclosure process. 

Expanding Land Banking Opportunities (A.1648/S.583): Land banks allow communities to acquire and maintain vacant and abandoned properties so they can be redeveloped or reused for long-term community benefit. They can help assemble and restore problem properties and put them back on the tax rolls, revitalizing neighborhoods and improving the quality of life for residents and taxpayers.  Under this bill, NJ towns could designate redevelopment entities (redevelopment authorities, housing authorities or county improvement authorities) and non-profits to act as a land bank on behalf of the municipality. The town could convey city-owned properties to that entity, which could also acquire properties for the land bank through gift or purchase, and could act as the municipality’s agent to carry out lien foreclosures and spot blight takings. 

Preserving the State Budget and Production Funding:  The Network continues our efforts to keep the State Rental Assistance Program (SRAP) fully funded and to get the program a dedicated funding source.  We will also work to secure resources for housing production through the Affordable Housing Trust Fund (Balanced Housing) and the eight county homeless trust funds, which have raised over $1 million.

Keeping Municipal Housing Trust Funds Local: We are working to ensure that $200 million now being held in local municipal housing trust funds, which is slated to be given to the state if left unspent, is made available to community developers to create the homes and jobs New Jersey needs.  We are also fighting to preserve $75 million from the federal foreclosure settlement, ensuring that it is spent on foreclosure related programs, including S.1566/A.2168 (see above).

Amending the Tax Sale Law: The tax foreclosure process, governed by the state Tax Sale Law, is the principal vehicle by which local governments can gain control of problem properties. Proposed amendments to NJ’s law would allow local governments to gain control of tax delinquent properties more easily, without the need to make an upfront appropriation, and reduce the risk of properties falling into legal limbo. Communities could acquire the liens on tax delinquent properties by preemptive bid, without having to compete with private investors, and to issue delinquent tax anticipation notes (DTANs) secured by these liens, either individually or jointly with other municipalities.

Advancing Housing Policies to Move NJ Forward:  The Network continues to promote state housing policies that would encourage the creation of homes people can afford near employment and transit centers. NJ needs a predictable and fair system to ensure our residents have enough homes in communities across the state. We oppose recent efforts to undo New Jersey’s Mount Laurel principles, and are participating in the Supreme Court’s review of the state’s current rules as amicus filers. The Network is also an amicus in the case to oppose the Governor’s proposal to reorganize the Council on Affordable Housing. 

Financing Special Needs Housing Trust Fund (SNHTF):  Enacted in 2005, the SNHTF was funded by $200 million in bonds, to create homes for people with special needs and homeless residents.   Administered by the NJHFMA, the Trust Fund has helped create quality homes people can afford with critical supportive services for over 2,000 families and individuals with special needs in nearly all 21 counties in the state. At this point the Fund is nearly out of money. The Network is partnering with our allies to secure additional funding for this critical program.

Preventing tenants from being penalized for living in overcrowded homes (A.766/S.489):  The Network opposes this bill, which imposes fines, ranging from $2,500 to $10,000 per violation, on tenants for living in overcrowded conditions.  However, it allows landlords to avoid being fined.  The bill would not apply to seasonal rentals or to buildings with more than four residential rental units.

For the complete text of any of these bills, go to www.njleg.state.nj.us and search by bill number.  For more information about these issues, contact Arnold Cohen or Staci Berger, 609/393-3752.

**Updated 04.02.12