LEGISLATIVE FISCAL ESTIMATE
[First Reprint]
ASSEMBLY, No. 2824
STATE OF NEW JERSEY
221st LEGISLATURE
DATED: MAY 7, 2024
SUMMARY
Synopsis: Modifies down payment assistance program for benefit of first-
generation and first-time homebuyers
Type of Impact: Annual State expenditure increase.
Agencies Affected: New Jersey Housing and Mortgage Finance Agency.
Office of Legislative Services Estimate
Annual Fiscal Impact
State Expenditure Increase Indeterminate
 The Office of Legislative Services (OLS) concludes that the bill would lead to an indeterminate
increase in annual State expenditures. Expanding the population that is eligible for down
payment assistance and increasing the maximum size of the loan to $20,000 would increase
annual program costs.
BILL DESCRIPTION
The bill modifies the Housing and Mortgage Finance Agency’s down payment assistance loan
program. The bill broadens the loan program’s definition of "first-generation homebuyer" so that
an applicant would qualify for down payment assistance even if a member of the household had
acquired a home in the last three years as long as the applicant, and the applicant’s spouse or
domestic partner, had not. The bill further modifies that definition to include an individual who
was an emancipated youth, or was designated as a homeless, unaccompanied youth.
The bill modifies the loan program’s definition of "first-time homebuyer" so that the definition
does not restrict ownership of residential real property within the previous three years, as long as
an applicant is using a mortgage product offered by the Housing and Mortgage Finance Agency
through an agency homebuyer program to purchase single-family housing. The applicant must
also have a gross household income that does not exceed a limitation determined by the agency.
Office of Legislative Services Legislative Budget and Finance Office
State House Annex Phone (609) 847-3105
P.O. Box 068 Fax (609) 777-2442
Trenton, New Jersey 08625 www.njleg.state.nj.us
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Moreover, existing law requires a first-time homebuyer to commit to use the home for which
the down payment assistance is provided as a principal residence for five years following the
purchase of the home as a condition for receiving the loan and qualifying for loan forgiveness.
The bill additionally requires the homebuyer to commit to retaining the first mortgage product
offered by the agency for a five-year period as a condition for receiving the assistance and
qualifying for loan forgiveness.
The bill also adjusts the loan award to be offered though the loan program from $15,000 to an
amount not to exceed $20,000.
FISCAL ANALYSIS
EXECUTIVE BRANCH
None received.
OFFICE OF LEGISLATIVE SERVICES
The OLS concludes that the bill would lead to an indeterminate increase in annual State
expenditures. Expanding the population that is eligible for down payment assistance and
increasing the maximum size of the loan to $20,000 would increase annual program costs.
Section: Local Government
Analyst: Abigail Stoyer
Associate Fiscal Analyst
Approved: Thomas Koenig
Legislative Budget and Finance Officer
This legislative fiscal estimate has been produced by the Office of Legislative Services due to the
failure of the Executive Branch to respond to our request for a fiscal note.
This fiscal estimate has been prepared pursuant to P.L.1980, c.67 (C.52:13B-6 et seq.).


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