The Affordable Housing Insurance Stabilization Act establishes a program within the New Jersey Housing and Mortgage Finance Agency (HMFA) to provide financial assistance to qualified affordable housing properties facing significant increases in insurance costs. Specifically, the program targets properties that have experienced a cumulative insurance cost increase of at least 40% over a 24-month period. The bill defines "qualified affordable housing property" as either a 100% deed-restricted affordable housing development or a mixed-income development with at least 20% deed-restricted units. The HMFA will prioritize assistance for properties serving low-income households, those with expiring affordability restrictions, and those at risk of financial distress, among other criteria.

To support this initiative, the bill appropriates $25 million from the General Fund to create the Affordable Housing Insurance Stabilization Fund, which will be used to administer the program. The financial assistance provided will be capped at $250 per unit annually and $1 million per project, with a maximum assistance period of three years unless exceptional circumstances arise. Recipients of the assistance must maintain property habitability, comply with affordability restrictions, and submit annual financial reports to the agency. The Executive Director of HMFA, in consultation with the Commissioner of Community Affairs, is tasked with adopting necessary regulations and reporting to the Legislature on the program's outcomes.