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 erosion of homeownership opportunities for lower and middle-income families. The bill prohibits institutional investors from contacting homeowners or bidding on single-family homes during the first 45 days of listing and restricts them from leasing any acquired homes for five years. It also introduces a new annual State tax on institutional investors based on the number of homes owned, with revenues directed towards down payment assistance programs for families purchasing single-family homes. Additionally, the bill establishes penalties for violations, allowing affected individuals to file complaints against non-compliant investors.

To further support homeownership, the legislation modifies existing loan programs to provide down payment assistance, including a zero-interest, forgivable loan for first-time homebuyers, and creates a "Community Investment Fund" to support these initiatives. It also establishes a Starter Home Development Incentive Program offering tax credits to developers for constructing starter homes, while streamlining the approval process for related development applications and inspections. The bill mandates the creation of a buyer's guide and a public awareness campaign regarding the impacts of institutional investment on the housing market, aiming to enhance accessibility and affordability in homeownership for New Jersey residents.

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