The bill revises the oversight and requirements for the Community Wealth Preservation Program and nonprofit community development corporations involved in purchasing foreclosed residential properties. It establishes a 30-year renewable deed restriction for properties acquired by nonprofits, mandating that they sell or rent to households earning no more than 120% of the area median income, with specific affordability benchmarks. The bill also extends the statutory right of redemption for foreclosed defendants to 90 days post-sale and requires sheriffs to deliver executed deeds to successful bidders within 90 days, rather than the current two-week timeframe. Additionally, it removes the rights of first and second refusal for tenants and certain nonprofits, respectively.

To ensure compliance and accountability, the bill introduces new requirements for nonprofits, including a written agreement with foreclosed defendants or their kin, detailing lease agreements and purchase options. Nonprofits must be listed as eligible by the Department of Community Affairs, which will maintain a public list of qualified organizations. The bill limits the number of properties a nonprofit can purchase in a given timeframe and imposes penalties for non-compliance with the program's requirements. It also clarifies definitions related to nonprofit community development corporations and introduces new reporting obligations for sheriffs' offices regarding the Community Wealth Preservation Program.

Statutes affected:
Introduced: 2A:50-64