The bill revises the oversight and requirements for the Community Wealth Preservation Program, specifically targeting nonprofit community development corporations involved in the purchase of foreclosed residential properties. It establishes a 30-year renewable deed restriction that mandates these nonprofits to sell or rent properties to households earning no more than 120% of the area median income, or 80% if renting. Additionally, the bill extends the statutory right of redemption for foreclosed defendants to 90 days post-sale and requires sheriffs to deliver fully executed deeds to successful bidders within 90 days, as opposed to the previous two-week timeframe. Notably, the bill removes the rights of first and second refusal for tenants and certain nonprofits, while imposing new requirements for lease agreements between nonprofits and occupants.

To ensure compliance and accountability, the bill mandates that nonprofit community development corporations must be listed by the Department of Community Affairs to bid on foreclosed properties, requiring them to submit documentation to maintain their eligibility. Nonprofits are restricted to purchasing one property per county per month, with a maximum of two statewide, unless they are purchasing on behalf of a foreclosed defendant or their kin. The legislation also introduces new reporting requirements for sheriffs and revises definitions related to nonprofit community development corporations and next of kin. Overall, the bill aims to enhance the affordability and accessibility of housing for low- and moderate-income households while ensuring that nonprofits adhere to their obligations in the program.

Statutes affected:
Introduced: 2A:50-64