This bill amends the down payment assistance program administered by the New Jersey Housing and Mortgage Finance Agency (HMFA) to better serve 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 altering the definition of "first-time homebuyer" to remove restrictions on prior ownership of residential property, provided the applicant uses a mortgage product from HMFA and meets 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 from HMFA during that period.

The bill also increases the maximum down payment assistance loan from $15,000 to $20,000, with first-generation homebuyers eligible for an additional award of $7,000 to $10,000. It grants HMFA more discretion in administering homebuyer education requirements and shifts from a regulatory framework to developing program guidelines. Furthermore, 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