N.J. proposal to convert foreclosed homes to affordable housing introduced in state Senate | State | NewJerseyNewsroom.com -- Your State. Your News.

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N.J. proposal to convert foreclosed homes to affordable housing introduced in state Senate

forecloselogo033011_optSens. Lesniak & Buono believe move could provide 10,000 affordable homes

BY TOM HESTER SR.
NEWJERSEYNEWSROOM.COM

Legislation that would create an office under the state Housing and Mortgage Finance Agency that would use money from the state Affordable Housing Trust Fund to purchase foreclosed properties to be used as affordable housing has been introduced by two Democratic state senators.

The bill would also create incentives for cities and towns to change foreclosed properties into affordable housing by giving them a 2-to-1 match against their affordable housing obligation for affordable houses created from foreclosed properties.

Sen. Raymond J. Lesniak (D-Union) announced the legislation Tuesday at a Statehouse press conference. Sen. Barbara Buono (D-Middlesex) is co-sponsoring the measure.

Lesniak said the bill could result in 10,000 new affordable units and 10,000 less unoccupied, boarded-up properties.

The proposal is supported by the New Jersey Bankers Association, the New Jersey Realtors Association, the New Jersey Builders Association, and the New Jersey League of Municipalities.

“Vacant and boarded up homes are a blight on neighborhoods, an invitation to vandalism and crime and a drag on property values and our economic recovery,” Lesniak said. “Families evicted from these homes still need affordable places to live. Federal Reserve Chairman Ben Bernanke stated the overhang of foreclosed properties is contributing to the slow rate of expansion of our economy, places downward pressure on housing prices and exacerbates the loss in housing wealth. S-1566 is designed to address these problems in New Jersey.”

“What this bill does is it ensures that we’re using our state’s affordable housing investment to help clean up our blighted communities and put foreclosed properties back to good use,” Buono said. “It’s a novel approach to not only boost the affordable housing stock available to low- and moderate-income families, but also to reclaim abandoned, dilapidated homes which are a strain on our neighborhoods.”

Assemblyman Jerry Green (D-Union), chairman of the Assembly Housing and Local Government Committee, who will sponsor the lower house version.

“While measures have been put in place over the last few years by the Legislature to help families struggling to pay their mortgages keep their homes, the current economic climate is making it almost impossible and is forcing many families to default on their mortgages,” Green said. “We reportedly have more than 100,000 homeowners currently dealing with foreclosures in New Jersey. These families, despite their financial struggles, still need a place to live.



 
Comments (3)
3 Wednesday, 15 February 2012 08:30
DianeSea
Eighteen months ago, I submitted a reply to the court concerning my foreclosure based on nondisclosure of facts prior to my purchase. Any person who took on a mortgage after 2006 should be demanding your equity back as you were not given all the facts in which to make such a big decision. FULL DISCLOSURE WAS DENIED YOU BY YOUR REAL ESTATE AGENT, MORTGAGE BROKER , STATE OFFICIALS AND FEDERAL GOVERMENT/BANKING CARTEL. Don't let the banks and politicians, AND WELFARE RECIPIENTS, profit from your losses, people. Get your money back in a court of law. These crooks have set aside billions of dollars to handle the cases coming forth.
2 Wednesday, 15 February 2012 02:13
tylercarrierez
When you have had your mortgage for a long time, it is not a good idea to Refinance, let me stress again, DO NOT refinance if you have your mortgage for long time, to avoid mistakes, use 123 Refinance articles.
1 Wednesday, 15 February 2012 01:32
Bob Spiegel
While its nice to think that home ownership is a goal most people support the reality is that only the builders, banks and realtors benefit by this bill and the rest of NJ taxpayers will likely get stuck yet again.

Property taxes are to high in most towns and that is more of a reason why people in NJ are fleeing the state than anything else. There has to be a more fair formula for seniors and others who own homes so they no longer have to pay the crippling school taxes that force most senior to have to sell their homes and leave NJ.

Also there needs to be relief for those trapped in their homes due to homes being built in flood plains and toxic waste sites like Pompton Lakes. Right now 450 families in Pompton Lakes homes are worthless because poison gases are coming up in their basements and they are not the only town with this problem. In these cases, the senate and assembly should sponsor a bill so that polluters like Dupont have to pay some type of mortgage assistance when they poison NJ families.

We need to do something in this state to help those who were duped by developers and banks who were made ultra wealthy while leaving many in debt. I don't support this bill because it continues to foster the over priced homes in this state that nobody can afford. There are better ways to help families afford homes and it starts with lowering crippling prices and taxes.

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