LEGISLATIVE FISCAL ESTIMATE
SENATE, No. 2329
STATE OF NEW JERSEY
220th LEGISLATURE
DATED: JULY 31, 2023
SUMMARY
Synopsis: Creates housing purchase matching grant program for members of
United States Armed Forces and New Jersey National Guard who have
served in certain military operations.
Type of Impact: Annual State cost increase.
Agencies Affected: New Jersey Housing and Mortgage Finance Agency; Department of
Military and Veterans Affairs.
Office of Legislative Services Estimate
Fiscal Impact Year 1 Annually Thereafter
State Cost Increase Up to $2 million Indeterminate
 The Office of Legislative Services (OLS) concludes that the bill may result in a State
expenditure increase of up to $2 million in the first year the bill is in effect for the New Jersey
Housing and Mortgage Finance Agency and the Department of Military and Veterans Affairs
to provide matching grants to eligible military personnel to assist in the purchase of a home.
If the full $2 million is not expended in the first year, the residual amount will be spent in
subsequent fiscal years until the full $2 million is exhausted.
 The bill is also expected to result in an indeterminate increase in administrative costs to the
Housing and Mortgage Finance Agency and the Department of Military and Veterans Affairs
associated with establishing the matching grant program and promulgating rules and
regulations for the program.
BILL DESCRIPTION
The bill establishes a matching grant program for certain members of the United States Armed
Forces and the New Jersey National Guard to assist them in purchasing a home. The program is
established in the Housing and Mortgage Finance Agency in coordination with the Department of
Military and Veterans Affairs. The program may be interfaced with any program currently
administered by the agency for first time homebuyers, although a recipient need not meet the other
Office of Legislative Services Legislative Budget and Finance Office
State House Annex Phone (609) 847-3105
P.O. Box 068 Fax (609) 777-2442
Trenton, New Jersey 08625 www.njleg.state.nj.us
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eligibility criteria of any other homebuyer program in order to be entitled to participate in the
matching grant program. The bill defines “members of the United States Armed Forces” as
members in both active and reserve components.
Matching grants would be made on the basis of available funds to eligible personnel on a dollar
for dollar matching fund basis, up to a maximum of $10,000. The funds may be applied to closing
costs, equity payments, or for any other purpose that assists the recipient in purchasing a home.
In order to be eligible for a matching grant, a member of the United States Armed Forces or
the New Jersey National Guard, at the time of application, must provide proof of: (1) at least 90
days of service on active duty in Operation Noble Eagle, Operation Enduring Freedom, or
Operation Iraqi Freedom; (2) legal residency in the State of New Jersey; and (3) intent to purchase
a principal residence in the State of New Jersey.
The bill appropriates $2 million from the General Fund to the Housing and Mortgage Finance
Agency to fund the grant program.
FISCAL ANALYSIS
EXECUTIVE BRANCH
None received.
OFFICE OF LEGISLATIVE SERVICES
The OLS concludes that the bill may result in a State expenditure increase of up to $2 million
in the first year the bill is in effect for the Housing and Mortgage Finance Agency and the
Department of Military and Veterans Affairs to provide matching grants to eligible military
personnel to assist in the purchase of a home. If the full $2 million is not expended in the first
year, the residual amount will be spent in subsequent fiscal years until the full $2 million is
exhausted.
The bill provides that matching grants for closing costs, equity payments, or any other purpose
that assists a recipient in purchasing a home are to be made available to eligible members of the
United States Armed Forces and the New Jersey National Guard on a dollar-for-dollar basis, up to
$10,000 per recipient. The bill’s $2 million appropriation would provide 200 grants to eligible
military personnel if each grant were to be awarded at the maximum amount of $10,000. The OLS
notes, however, that more than 200 military personnel may benefit from the matching grant
program if grants are provided at amounts less than $10,000. The OLS is unable to predict the
amount that a program participant may contribute, and therefore, be eligible to receive in the form
of a matching grant through the program. The OLS is also unable to estimate the number of
military personnel who have: participated in at least 90 days of active duty military service in
Operation Noble Eagle, Operation Enduring Freedom, or Operation Iraqi Freedom; have legal
residence in New Jersey; and intend to purchase a principal residence in New Jersey.
The bill is also expected to result in an indeterminate increase in administrative costs to the
Housing and Mortgage Finance Agency and the Department of Military and Veterans Affairs
associated with establishing the matching grant program and promulgating rules and regulations
for the program.
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Section: Local Government
Analyst: Abigail Stoyer
Associate Fiscal Analyst
Approved: Thomas Koenig
Legislative Budget and Finance Officer
This legislative fiscal estimate has been produced by the Office of Legislative Services due to the
failure of the Executive Branch to respond to our request for a fiscal note.
This fiscal estimate has been prepared pursuant to P.L.1980, c.67 (C.52:13B-6 et seq.).


Statutes affected:
Introduced: 55:14K-5