The bill amends Section 12 of P.L.1995, c.244 (C.2A:50-64) to strengthen the oversight of the Community Wealth Preservation Program and set new requirements for nonprofit community development corporations involved in foreclosure actions. Key provisions include mandating sheriffs to conduct foreclosure sales within 150 days of receiving a writ of execution, establishing a Special Master to oversee sales if necessary, and ensuring effective communication of sale notices to foreclosed defendants. The bill also introduces a renewable deed restriction for properties acquired by nonprofits, requiring future sales to households earning no more than 120% of the area median income, or 80% if rented, to promote long-term affordability.

Additionally, the bill extends the 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, rather than the previous two weeks. It removes the rights of first and second refusal for tenants and certain nonprofits, while introducing new obligations for nonprofits, such as negotiating lease terms with foreclosed defendants and being listed as eligible by the Department of Community Affairs to bid on properties. The legislation aims to enhance support for low-income households in acquiring foreclosed properties and ensure compliance with state housing laws, ultimately promoting community wealth preservation.

Statutes affected:
Introduced: 2A:50-64