The "Protection of Homeownership and Limiting Institutional Investor Acquisition Act" seeks to mitigate the influence of institutional investors in New Jersey's single-family home market, which has contributed to the unaffordability of homeownership for many families. The bill imposes a 90-day prohibition on institutional investors from bidding on or purchasing single-family homes after they are listed, and it restricts these investors from leasing any acquired homes for five years. Additionally, the legislation introduces tax penalties for violations and allows individuals to file complaints against offenders. The act also establishes a framework for down payment assistance programs, particularly targeting first-time homebuyers, and creates a Community Investment Fund to support these initiatives.

Moreover, the bill includes provisions to expedite the approval process for developments that include starter homes, defined as single-family units not exceeding 1,800 square feet. It mandates that minor site plan approvals be granted or denied within 30 days for projects meeting specific criteria and allows for private inspection agencies to conduct inspections. The legislation also promotes public awareness campaigns about the impacts of institutional investment and introduces tax incentives for first-time homebuyers, including deductions for down payments and mortgage interest. The Starter Home Development Incentive Program is established to encourage the construction of affordable housing through tax credits for developers, with all sections of the bill set to take effect immediately upon enactment.

Statutes affected:
Introduced: 52:27D-161.1, 52:27D-161.2, 55:14K-104, 55:14K-105, 40:55D-10, 40:55D-46, 40:55D-46.1, 40:55D-48, 52:27D-132