This bill amends the down payment assistance program administered by the New Jersey Housing and Mortgage Finance Agency (HMFA) to better support first-generation and first-time homebuyers. Key modifications include redefining "first-generation homebuyer" to allow applicants whose spouse or domestic partner has not owned a home in the last three years to qualify, and adjusting the definition of "first-time homebuyer" to remove restrictions on prior ownership of residential property, provided they are using an HMFA mortgage product and meet income limitations. Additionally, first-time homebuyers must commit to using the purchased home as their principal residence for five years and retain the first mortgage product offered by HMFA during this period.

The bill also increases the maximum down payment assistance loan from $15,000 to $20,000 and introduces an additional award for first-generation homebuyers ranging from $7,000 to $10,000. It modifies the homebuyer education requirement, allowing HMFA greater discretion in administering the coursework, and changes the regulatory framework by requiring HMFA to develop program guidelines instead of promulgating formal rules and regulations. The bill mandates that at least 50% of the down payment assistance funding be allocated to first-generation homebuyers, with provisions for reporting on the program's efficacy and demographic impact within two years of implementation.

Statutes affected:
Introduced: 55:14K-104, 55:14K-105