New Jersey S 141: Establishes loan program for first-time homebuyers who move to areas with most abandoned properties; appropriates $5 million.

Bill Text

S141 

SENATE, No. 141 

STATE OF NEW JERSEY

222nd LEGISLATURE

� 

PRE-FILED FOR INTRODUCTION IN THE 2026 SESSION

Sponsored by:

Senator JAMES W. HOLZAPFEL

District 10 (Monmouth and Ocean)

SYNOPSIS

���� Establishes loan program for first-time homebuyers 
who move to areas with most abandoned properties; appropriates $5 million.

CURRENT VERSION OF TEXT 

���� Introduced Pending Technical Review by Legislative 
Counsel.

�� 

An Act establishing a loan program for first-time 
homebuyers who move to certain areas, supplementing Title 55 of the Revised 
Statutes, and making an appropriation.

���� Be It 
Enacted by the Senate and General Assembly of 
the State of New Jersey:

���� 1.��� a.� There is established 
a program in the New Jersey Housing and Mortgage Finance Agency to provide 
interest-free, deferred second mortgage loans to eligible applicants to cover 
the cost of qualified repairs to a residential property in an eligible area.

���� b.��� (1)� The maximum amount 
for a loan shall be $10,000.

���� (2)�� A loan may be deferred 
up until the time of sale or transfer of title of the residential property.

���� (3)�� An application for a 
loan shall be made on forms prescribed by the New Jersey Housing and Mortgage 
Finance Agency.

���� c.���� In order to qualify for 
a loan, an eligible applicant has to meet at least four of the following seven 
criteria:

���� (1)�� (a)� has completed a 
bachelor�s, associate�s, or vocational degree program,

���� (b)�� is an active-duty member 
of the military or a veteran, or 

���� (c)�� has been consistently 
employed for at least two years;

���� (2)�� is a tradesman skilled 
in carpentry, electrical work, or other skilled labor;

���� (3)�� commits to volunteering 
ten hours a week on community redevelopment or engagement projects, including 
but not limited to activities such as revitalizing structures or providing pro 
bono legal services;

���� (4)�� is relocating from 
another state, or has moved to the State within the past three years, and 
commits to staying in the State for at least five additional years;

���� (5)�� is employed or is 
actively seeking employment in the municipality the applicant is moving to, or 
within ten miles in any direction of the municipality�s boundaries;

���� (6)�� is employed or is 
actively seeking employment within 20 miles in any direction of the boundaries of 
the municipality the applicant is moving to in either: the arts; the science, 
technology, engineering, or math fields; with the government at the municipal, 
State, or federal level; or with a small business; or

���� (7)�� is seeking an interest-free, 
deferred loan to renovate or rehabilitate a multiple dwelling or two-family 
dwelling, with plans to rent the additional unit or units at a fair-market rate 
and maintain the property for at least three years.

���� d.��� On or before the first 
day of the ninth month next following the effective date of P.L.��� , c.��� 
(C.������� ) (pending before the Legislature as this bill), the Executive Director 
of the New Jersey Housing and Mortgage Finance Agency shall adopt rules and 
regulations, pursuant to the "Administrative Procedure Act," 
P.L.1968, c.410 (C.52:14B-1 et seq.), to effectuate the provisions of this 
section.� The executive director shall adopt criteria for determining the 
number of abandoned properties in municipalities, and shall determine which 10 municipalities 
in the State have the highest numbers of abandoned properties.

���� e.���� As used in this 
section:

���� �Eligible applicant� means a 
first-time homebuyer who purchases and occupies a residential property in an 
eligible area, and who meets at least four of the seven criteria of subsection 
c. of this section.

���� �Eligible area� means the 
municipalities in the State with the 10 highest numbers of abandoned 
properties, and all areas within five miles of the boundaries of these municipalities.

���� �Qualified repair� means basic 
rehabilitation repairs to a residential property, including but not limited to improvements 
to the plumbing, heating system, electrical system, roof, windows, doors, 
insulation, or exterior, including painting.

���� 2.��� There is appropriated 
from the General Fund to the New Jersey Housing and Mortgage Finance Agency $5 
million to effectuate the purposes of this act.

���� 3.��� This act shall take 
effect immediately.

STATEMENT

���� This bill would establish a loan 
program for first-time homebuyers who move to parts of the State with the 
highest numbers of abandoned properties.� This bill would help encourage the 
revitalization of these areas.

���� The loan program that would be 
created by the bill would provide interest-free, deferred second mortgage loans 
to eligible applicants to cover the cost of qualified repairs to residential 
properties in eligible areas.� An eligible applicant is a first-time homebuyer 
who purchases and occupies a residential property in an eligible area,