This bill introduces an annual State tax on entities that own more than 20 single-family residences in New Jersey for purposes other than single-family ownership. The tax is set at $20,000 for each residence owned beyond the initial 20, with certain exemptions for covered taxpayers who maintain their ownership levels within 90% of the previous year's total. The revenue generated from this tax will be allocated to the New Jersey Housing and Mortgage Finance Agency to fund down payment assistance programs aimed at helping families purchase homes.

The legislation aims to deter hedge funds and other large investors from monopolizing the single-family housing market, which can limit access for families seeking to buy homes. By imposing this tax, the bill encourages these entities to gradually reduce their holdings of single-family residences, thereby making more homes available for family ownership. The bill also includes provisions for reporting and penalties for non-compliance, as well as a certification process for buyers to ensure they do not own other single-family residences, thereby targeting problematic ownership structures while excluding certain entities like nonprofits and home builders from the tax.