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 of acquiring single-family housing for those who commit to using the home as their principal residence for a minimum of five years. The assistance can include a loan award of up to $20,000, with first-generation homebuyers eligible for an additional amount between $7,000 and $10,000. To qualify for the program, applicants must complete a homebuyer counseling course and meet specific income and eligibility criteria set by the New Jersey Housing and Mortgage Finance Agency.

Additionally, the bill mandates that at least 50% of the total down payment assistance 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, including demographic data on recipients and the impact of the assistance on housing costs and homeownership rates. Furthermore, 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