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, even if a household member has. The definition of "first-time homebuyer" is also adjusted 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 this period.

The bill 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 also modifies the homebuyer education requirement, allowing HMFA more discretion in administering the coursework. Furthermore, the bill shifts from requiring the promulgation of rules and regulations to the development of program guidelines by HMFA. The agency is mandated to report on the program's efficacy within two years, analyzing the impact of the assistance on housing costs and homeownership among first-generation buyers.

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