TRENTON, N.J. (2/17/12)--A measure that would allow a New Jersey agency to purchase and deed-restrict foreclosed properties for affordable housing has been introduced into the New Jersey Senate.
State Sen. Ray Lesniak (D-20) introduced S. 1566 this week to 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, according to the New Jersey Credit Union League (The Daily Exchange Feb. 16).
State Sen. Barbara Buono (D-18) is co-sponsor of the measure, which was scheduled to be considered yesterday before the Senate Economic Growth Committee. Assemblyman Jerry Green (D-22) will introduce a companion bill in the lower house, said the league.
The legislation would turn 10,000 foreclosed homes into 10,000 affordable homes, but the program wouldn't be just an affordable housing program, the article said. The "Foreclosure Relief Corp." would give municipalities 45 days to determine whether they want the vacant properties to be converted to affordable housing before the corporation goes into a market rate bulk sale.