This bill introduces an annual State tax on entities that own more than 20 single-family residences in New Jersey for purposes other than single-family ownership. The tax is set at $20,000 for each residence owned beyond the initial 20, with certain exemptions based on ownership levels at the end of the tax year. The revenue generated from this tax will be allocated to the New Jersey Housing and Mortgage Finance Agency to fund down payment assistance programs aimed at helping families purchase homes. The bill aims to discourage hedge funds and other investors from monopolizing residential properties, which can limit access for families seeking to buy homes in a tightening real estate market.

To facilitate compliance, the bill includes provisions for reporting requirements and penalties for failure to report accurate information. It also establishes a certification process for purchasers of single-family residences to confirm they do not own other similar properties, ensuring that the tax targets problematic ownership structures. The legislation excludes certain entities, such as nonprofit organizations and home builders, from the tax to focus on investment firms that contribute to housing market challenges. Overall, the bill seeks to promote homeownership among families while addressing the impact of large-scale investment ownership in residential neighborhoods.