The bill revises the oversight of the Community Wealth Preservation Program and establishes new requirements for nonprofit community development corporations involved in foreclosure actions. It amends Section 12 of P.L.1995, c.244 (C.2A:50-64) to implement uniform procedures for sheriffs conducting sales of foreclosed properties, including a requirement to conduct sales within 150 days of receiving a writ of execution and to provide timely notice of the sale and upset price. The bill also introduces a significant insertion that mandates nonprofit community development corporations to adhere to a renewable deed restriction on acquired properties, ensuring they are sold or rented to households earning no more than 120% or 80% of the area median income, respectively.

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, rather than the previous two weeks. It removes the rights of first and second refusal for tenants and certain nonprofits, respectively, while imposing new requirements for lease agreements between nonprofits and occupants. Nonprofit organizations must be listed by the Department of Community Affairs to bid on foreclosed properties and are limited in their purchases to one property per county per month, with a maximum of two statewide, unless purchasing on behalf of a foreclosed defendant or their kin. Overall, the legislation aims to enhance housing affordability and accessibility for low- and moderate-income households while ensuring accountability among nonprofits involved in the program.

Statutes affected:
Introduced: 2A:50-64