The bill amends existing law to establish a zero-interest, forgivable loan program aimed at providing down payment assistance for first-time homebuyers in New Jersey. The program will offer financial support to help cover the costs associated with acquiring single-family housing for primary residence. A key requirement for first-time homebuyers is a five-year commitment to use the purchased home as their principal residence, during which they must retain the first mortgage product offered by the New Jersey Housing and Mortgage Finance Agency. The maximum loan award for down payment assistance is set at $20,000, with an additional amount of $7,000 to $10,000 available specifically for first-generation homebuyers.

Furthermore, the bill outlines the establishment of program guidelines by the executive director of the agency, which will include application requirements, selection criteria, and eligibility for down payment assistance. It mandates that at least 50% of the total funding awarded each fiscal year must go to first-generation homebuyers, unless there are insufficient applicants. The agency is also required to submit a report to the Governor and Legislature within 730 days of the bill's effective date, analyzing the program's efficacy and its impact on housing costs and homeownership among first-generation buyers. Additionally, the bill appropriates up to $8 million from the New Jersey Affordable Housing Trust Fund to support the Down Payment Assistance Program.

Statutes affected:
Introduced: 55:14K-104, 55:14K-105
Advance Law: 55:14K-104, 55:14K-105
Pamphlet Law: 55:14K-104, 55:14K-105