New Jersey 2020-2021 Regular Session Status: Introduced

A5130 —

  1. 1
    Introduced
  2. 2
    In Committee
  3. 3
    Passed General Assembly
  4. 4
    Passed Senate
  5. 5
    To Executive
  6. 6
    Enacted

This bill died with 2020-2021 Regular Session. It reached “Introduced” and never advanced before the session ended, so it can no longer move — a new version would have to be reintroduced in the current session.

This bill is no longer active — its legislative session has ended, so there is no live prognosis. It would have to be reintroduced in the current session to move again.

Identical bill: S3244 (1R) (not yet in our corpus)

Bill Text

What changed in the latest version

258 added · 274 removed

Plain-language change summary

The amendment includes the addition of a title for the bill, which is now cited as the "New Jersey Foreclosure Prevention Act." It also clarifies definitions related to the legislation, specifically mentioning the New Jersey Residential Foreclosure Prevention Program. These changes help establish the context and framework for addressing foreclosure issues in New Jersey.

→
Previous
Latest
2021, c.034 CC (A5130 1R) §§1-8 - C.55:14K-94 to 55:14K-101   (CORRECTED COPY) P.L.
2021, c.034 (A5130 1R) CHAPTER 34   An Act concerning the mitigation of loss on distressed and foreclosed properties, supplementing and amending Title 55 of the Revised Statutes, and amending Title 2A of the New Jersey Statutes.
2021, CHAPTER 34, approved March 9, 2021 Assembly, No.
5130 (First Reprint)     An Act concerning the mitigation of loss on distressed and foreclosed properties, supplementing and amending Title 55 of the Revised Statutes, and amending Title 2A of the New Jersey Statutes.
       1.  (New section)  This act shall be known and may be cited as the "New Jersey Foreclosure Prevention Act."        2.
  C.55:14K-94  Short title.
 (New section)  The Legislature finds and declares that:
     1.    This act shall be known and may be cited as the "New Jersey Foreclosure Prevention Act."   C.55:14K-95  Findings, declarations relative to foreclosure prevention.
     a.  New Jersey experienced heightened foreclosure rates during the Great Recession beginning in 2008 and continuing for the ensuing decade, only returning to pre-recession rates of foreclosure in 2019.
     2.    The Legislature finds and declares that:
     b.  New Jersey is currently suffering through the COVID-19 pandemic, with more than 1.6 million New Jersey residents seeking unemployment benefits due to job loss, furlough, or hour reductions.
     a.     New Jersey experienced heightened foreclosure rates during the Great Recession beginning in 2008 and continuing for the ensuing decade, only returning to pre-recession rates of foreclosure in 2019.
     c.  Homeowners in New Jersey have suffered enormous negative economic impacts due to the COVID-19 pandemic, resulting in increased housing insecurity.
     b.    New Jersey is currently suffering through the COVID-19 pandemic, with more than 1.6 million New Jersey residents seeking unemployment benefits due to job loss, furlough, or hour reductions.
     c.     Homeowners in New Jersey have suffered enormous negative economic impacts due to the COVID-19 pandemic, resulting in increased housing insecurity.
     d.  Given New Jersey’s susceptibility to prolonged periods of elevated rates of foreclosure, as evidenced by the long-term impact of the Great Recession, the Legislature hereby determines and declares that there is a need to provide alternative foreclosure mitigation measures.         3.
     d.    Given New Jersey’s susceptibility to prolonged periods of elevated rates of foreclosure, as evidenced by the long-term impact of the Great Recession, the Legislature hereby determines and declares that there is a need to provide alternative foreclosure mitigation measures.    C.55:14K-96  Definitions relative to foreclosure prevention.
 (New section)  As used in P.L.    , c.    (C.       ) (pending before the Legislature as this bill):
     3.    As used in P.L.2021, c.34 (C.55:14K-94 et al.):
     “Fund” means the Foreclosure Intervention Fund, established pursuant to section 4 of P.L.    , c.    (C.       ) (pending before the Legislature as this bill).
     “Fund” means the Foreclosure Intervention Fund, established pursuant to section 4 of P.L.2021, c.34 (C.55:14K-97).
     “Program” means the “New Jersey Residential Foreclosure Prevention Program” established pursuant to section 4 of P.L.    , c.    (C.       ) (pending before the Legislature as this bill).
     “Program” means the “New Jersey Residential Foreclosure Prevention Program” established pursuant to section 4 of P.L.2021, c.34 (C.55:14K-97).
       4.
  C.55:14K-97  “New Jersey Residential Foreclosure Prevention Program.”      4.    a.
 (New section)  a.  There is established in the agency the “New Jersey Residential Foreclosure Prevention Program,” which shall be subject to the powers of the agency, as designated pursuant to section 5 of P.L.1983, c.530 (C.55:14K-5).
There is established in the agency the “New Jersey Residential Foreclosure Prevention Program,” which shall be subject to the powers of the agency, as designated pursuant to section 5 of P.L.1983, c.530 (C.55:14K-5).
 The goal of the program is to ensure that loss mitigation and foreclosure prevention measures are taken on eligible properties.  Either directly, or through its contractors, the agency may purchase eligible properties and mortgage assets in furtherance of this goal, pursuant to section 5 of P.L.    , c.    (C.       ) (pending before the Legislature as this bill).       b.    The agency in furtherance of the program may enter into contracts with any person, corporation, or entity which the agency determines to be necessary or appropriate to carry out its responsibilities under P.L.    , c.    (C.       ) (pending before the Legislature as this bill).
 The goal of the program is to ensure that loss mitigation and foreclosure prevention measures are taken on eligible properties.  Either directly, or through its contractors, the agency may purchase eligible properties and mortgage assets in furtherance of this goal, pursuant to section of P.L.2021, c.34 (C.55:14K-98).
Such contracts shall be subject to the procedures adopted pursuant to section 5 of P.L.    , c.    (C.       ) (pending before the Legislature as this bill).
     b.    The agency in furtherance of the program may enter into contracts with any person, corporation, or entity which the agency determines to be necessary or appropriate to carry out its responsibilities under P.L.2021, c.34 (C.55:14K-94 et al.).
Such contracts shall be subject to the procedures adopted pursuant to section 5 of P.L.2021, c.34 (C.55:14K-98).
     c.     In carrying out the agency’s duties under P.L.    , c.    (C.       ) (pending before the Legislature as this bill), the agency may employ the consulting services of real estate and loan portfolio asset management firms, property management firms, auction marketing firms, brokerage services firms, appraisers, and such other consultants and employees required in the judgment of the agency, notwithstanding the provisions of Title 11A of the New Jersey Statutes.
     c.     In carrying out the agency’s duties under P.L.2021, c.34 (C.55:14K-94 et al.), the agency may employ the consulting services of real estate and loan portfolio asset management firms, property management firms, auction marketing firms, brokerage services firms, appraisers, and such other consultants and employees required in the judgment of the agency, notwithstanding the provisions of Title 11A of the New Jersey Statutes.
     d.    Within 180 days following the enactment of P.L.    , c.    (C.       ) (pending before the Legislature as this bill), the agency shall adopt a funding plan for the program utilizing the “Foreclosure Intervention Fund” established pursuant to section 6 of P.L.    , c.    (C.       ) (pending before the Legislature as this bill).  The agency may directly fund the program through revenue generated by the fund.  The agency shall have the authority to alter its funding plan as the Executive Director of the agency deems necessary.
     d.    Within 180 days following the enactment of P.L.2021, c.34 (C.55:14K-94 et al.), the agency shall adopt a funding plan for the program utilizing the “Foreclosure Intervention Fund” established pursuant to section 6 of P.L.2021, c.34 (C.55:14K-99).  The agency may directly fund the program through revenue generated by the fund.  The agency shall have the authority to alter its funding plan as the Executive Director of the agency deems necessary.
       5.    (New section)  a.  (1)  The agency may enter into contracts or loans, or both, with no more than two qualified community development financial institutions to negotiate, bid for, and purchase eligible properties and mortgage assets for the purpose facilitating the program.  In selecting contractors from among qualified community development financial institutions, the agency shall accord a strong preference to qualified community development financial institutions that have substantial experience in lending in the State and substantial knowledge of the State’s real estate markets.  The agency may enter into contracts or loans, or both, with a partnership or consortia of organizations, as long as a qualified community development financial institution is the lead entity, or a partnership or consortia of multiple qualified community development financial institutions.
  C.55:14K-98  Entry into contracts, loans.
     (2)   Should the agency contract with a community development financial institution for the purposes of P.L.    , c.    (C.       ) (pending before the Legislature as this bill), the contract shall specify the amounts, schedules, and types of funding to be provided by the agency to the qualified community development financial institution, the repayment schedule for the portion of that funding to be repaid, and targeted goals for homeowner interventions.  The agency may condition funding and goals upon the availability of funds to the program.  The contract shall specify reasonable administrative costs sufficient to enable the qualified community development financial institution to exercise its obligations pursuant to P.L.    , c.    (C.       ) (pending before the Legislature as this bill).  The contract shall set forth criteria for instances when the purchase, sale, lease, and conveyance of properties furthers the purposes of P.L.    , c.    (C.       ) (pending before the Legislature as this bill).
     5.    a.
     b.
 (1)  The agency may enter into contracts or loans, or both, with no more than two qualified community development financial institutions to negotiate, bid for, and purchase eligible properties and mortgage assets for the purpose of facilitating the program.  In selecting contractors from among qualified community development financial institutions, the agency shall accord a strong preference to qualified community development financial institutions that have substantial experience in lending in the State and substantial knowledge of the State’s real estate markets.  The agency may enter into contracts or loans, or both, with a partnership or consortia of organizations, as long as a qualified community development financial institution is the lead entity, or a partnership or consortia of multiple qualified community development financial institutions.
 All purchases, sales, leases, and conveyances of property by qualified community development financial institutions exercised pursuant to this section shall be deemed to lessen the burdens of government in furthering the purposes of P.L.    , c.    (C.       ) (pending before the Legislature as this bill).
     (2)   Should the agency contract with a community development financial institution for the purposes of P.L.2021, c.34 (C.55:14K-94 et al.), the contract shall specify the amounts, schedules, and types of funding to be provided by the agency to the qualified community development financial institution, the repayment schedule for the portion of that funding to be repaid, and targeted goals for homeowner interventions.  The agency may condition funding and goals upon the availability of funds to the program.  The contract shall specify reasonable administrative costs sufficient to enable the qualified community development financial institution to exercise its obligations pursuant to P.L.2021, c.34 (C.55:14K-94 et al.).  The contract shall set forth criteria for instances when the purchase, sale, lease, and conveyance of properties furthers the purposes of P.L.2021, c.34 (C.55:14K-94 et al.).
       6.
     b.    All purchases, sales, leases, and conveyances of property by qualified community development financial institutions exercised pursuant to this section shall be deemed to lessen the burdens of government in furthering the purposes of P.L.2021, c.34 (C.55:14K-94 et al.).    C.55:14K-99  Foreclosure Intervention Fund.
 (New section)  a.  There is established within the agency a Foreclosure Intervention Fund, which shall be a non-lapsing, revolving fund and which shall be the repository for funds appropriated or otherwise made available for the purposes of P.L.    , c.    (C.       ) (pending before the Legislature as this bill), and any interest earned thereon.  The fund shall be administered by the agency, in accordance with its authority under section 5 of P.L.1983, c.530 (C.55:14K-5) to manage funds for housing programs.
     6.    a.
     b.    The agency may transfer into the fund any amounts held or received by the agency that are needed by the agency or its contractors for the purchase of eligible property.       c.
 There is established within the agency a Foreclosure Intervention Fund, which shall be a non-lapsing, revolving fund and which shall be the repository for funds appropriated or otherwise made available for the purposes of P.L.2021, c.34 (C.55:14K-94 et al.), and any interest earned thereon.  The fund shall be administered by the agency, in accordance with its authority under section 5 of P.L.1983, c.530 (C.55:14K-5) to manage funds for housing programs.
 The agency may use annually up to five percent of the monies available in the fund for the payment of any necessary administrative costs related to the administration of the program.
     b.    The agency may transfer into the fund any amounts held or received by the agency that are needed by the agency or its contractors for the purchase of eligible property.       c.     The agency may use annually up to five percent of the monies available in the fund for the payment of any necessary administrative costs related to the administration of the program.
of section 4 of P.L.    , c.    (C.       ) (pending before the Legislature as this bill) may be appropriated by the agency for additional foreclosure prevention programs.
of section 4 of P.L.2021, c.34 (C.55:14K-97) may be appropriated by the agency for additional foreclosure prevention programs.
       7.  (New Section)  a.  The agency may make grants to eligible applicants, including, but not limited to, non-profit housing sponsors, municipalities or other governmental entities utilizing funds provided by P.L.    , c.    (C.       ) (pending before the Legislature as this bill) or otherwise made available to the agency.  Grants issued pursuant to this section shall be used to advance the goals of the program, as established pursuant to section 4 of P.L.    , c.    (C.       ) (pending before the Legislature as this bill).
  C.55:14K-100  Grants to eligible applicants.
     b.
     7.    a.
The agency shall establish regulations, procedures or guidelines governing the qualifications of applicants, the application procedures and the criteria for awarding grants to such eligible applicants and the standards for establishing the amount, terms and conditions of each grant.
 The agency may make grants to eligible applicants, including, but not limited to, non-profit housing sponsors, municipalities or other governmental entities utilizing funds provided by P.L.2021, c.34 (C.55:14K-94 et al.) or otherwise made available to the agency.  Grants issued pursuant to this section shall be used to advance the goals of the program, as established pursuant to section 4 of P.L.2021, c.34 (C.55:14K-97).
       8.    (New section)  a.  The agency is authorized to defend and indemnify the federal government, any department, board, body, agency or other entity thereof, the Government National Mortgage Association and its successors and assigns, the Federal National Mortgage Association and its successors and assigns, and the Federal Home Loan Mortgage Corporation and its successors and assigns, against claims, causes of action, demands, costs or judgments against that entity arising as a direct result of that entity’s agreement with the agency, upon the terms and limitations the agency deems reasonable and appropriate.
     b.    The agency shall establish regulations, procedures or guidelines governing the qualifications of applicants, the application procedures and the criteria for awarding grants to such eligible applicants and the standards for establishing the amount, terms and conditions of each grant.
  C.55:14K-101  Authority of agency.
     8.    a.
 The agency is authorized to defend and indemnify the federal government, any department, board, body, agency or other entity thereof, the Government National Mortgage Association and its successors and assigns, the Federal National Mortgage Association and its successors and assigns, and the Federal Home Loan Mortgage Corporation and its successors and assigns, against claims, causes of action, demands, costs or judgments against that entity arising as a direct result of that entity’s agreement with the agency, upon the terms and limitations the agency deems reasonable and appropriate.
     b.
     b.    The agency may create a reserve fund, procure insurance or take other such appropriate action in order to meet its future obligations, if any, created by such indemnification obligations.  Any agreement to indemnify pursuant to subsection a.
 The agency may create a reserve fund, procure insurance or take other such appropriate action in order to meet its future obligations, if any, created by such indemnification obligations.  Any agreement to indemnify pursuant to subsection a.
       9.  N.J.S.2A:17-38 is amended to read as follows:
       9.    N.J.S.2A:17-38 is amended to read as follows:
     2A:17-38.  a.  When a sheriff or other officer makes a sale by virtue of an execution or executions to [him] the sheriff or officer directed, [he] the sheriff or officer shall, within 30 days thereafter, make and file, with his bill of costs or execution fees, in the office of the clerk of the  court out of which the execution or executions issued, a true statement and calculation, in order of time, of the execution or executions by virtue of  which the sale was made, the amount or amounts due thereon, respectively, at  the time of the sale, the time or times of sale and the amount of the sales.        b.  (1) When calculating the amount due thereon, as described in subsection a.
  Statement of execution sales, disposition of revenues.
Show all 77 changed rows (37 more)
Previous
Latest
of this section, the sheriff or officer shall additionally 1[consider] collect1 $350 per sale to be utilized by the fund within the New Jersey Housing and Mortgage Finance Agency established in section 6 of P.L.     , c.    (C.      ) (pending before the Legislature as this bill).
     2A:17-38.
     (2)  The revenues obtained from these increased amounts, after deduction of any actual administrative costs incurred by the sheriff or officer in carrying out the provisions of this subsection, shall be transmitted no later than the first day of each quarter by the sheriff or officer to the fund with an accounting of collections and foreclosure actions during the corresponding quarter.
 a.
     c.  The statement shall be certified under the hand of the officer making and  filing it, and shall be conclusive against the officer only.  If there be more  sales than [1] one, the statement shall be made and filed within 30 days after the  final sale.
 When a sheriff or other officer makes a sale by virtue of an execution or executions to the sheriff or officer directed, the sheriff or officer shall, within 30 days thereafter, make and file, with his bill of costs or execution fees, in the office of the clerk of the court out of which the execution or executions issued, a true statement and calculation, in order of time, of the execution or executions by virtue of which the sale was made, the amount or amounts due thereon, respectively, at the time of the sale, the time or times of sale and the amount of the sales.
(cf:
       b.    (1)  When calculating the amount due thereon, as described in subsection a.
N.J.S.2A:17-38)        10.  Section 7 of P.L.1983, c.530 (C.55:14K-7) is amended to  read as follows:
of this section, the sheriff or officer shall additionally collect $350 per sale to be utilized by the fund within the New Jersey Housing and Mortgage Finance Agency established in section 6 of P.L.2021, c.34 (C.55:14K-99).
     7.  a.  Loans made by the agency to finance housing projects shall be subject to  the following terms and conditions:
     (2)   The revenues obtained from these increased amounts, after deduction of any actual administrative costs incurred by the sheriff or officer in carrying out the provisions of this subsection, shall be transmitted no later than the first day of each quarter by the sheriff or officer to the fund with an accounting of collections and foreclosure actions during the corresponding quarter.
     (1)  The loan shall be for a period of time not in excess of 50 years as determined by the agency;
     c.     The statement shall be certified under the hand of the officer making and filing it, and shall be conclusive against the officer only.  If there be more sales than one, the statement shall be made and filed within 30 days after the final sale.
     (2)  The amount of the loan shall not exceed 90% of the total project cost as determined by the agency, except that as to projects to be owned, constructed, improved, rehabilitated, operated, managed and maintained as mutual housing or by any corporation or association organized not for profit which has as one of its purposes the construction, improvement or rehabilitation of housing projects, the amount of the loan shall not exceed 100% of the total project cost as determined by the agency;  but the agency may  make additional loans to a housing sponsor to which a loan by the agency for  the cost of a project is outstanding if and to the extent that the agency finds  that such additional loan is required to more adequately secure and protect the  project or to avoid a default by the sponsor on the original loan for the cost  of the project and is in the best interest of the agency and the holders of its  bonds issued to finance the original loan for the cost of the project;
       10.  Section 7 of P.L.1983, c.530 (C.55:14K-7) is amended to read as follows:
     (3)  The interest rate on the loan shall be established by the agency at the  lowest level consistent with the agency's cost of operation and its responsibilities to the holders of its bonds;
  C.55:14K-7  Terms and conditions of loans.
     (4)  The loan shall be evidenced by a mortgage note or bond and by a mortgage which shall be a first lien on the project and which shall contain such terms and provisions and be in a form approved by the agency.  The agency shall require the qualified housing sponsor receiving a loan or its contractor to post security in amounts related to the project cost as established by regulation and to execute such other assurances and guarantees as the agency may deem necessary and may require its principals or stockholders to also execute such other assurances and guarantees as the agency may deem necessary;
     7.    a.
     (5)  The loan shall be subject to an agreement between the agency and the housing sponsor which will subject the housing sponsor and its principals or stockholders to limitations established by the agency as to rentals and other charges, builders' and developers' profits and fees, and the disposition of its  property and franchises to the extent more restrictive limitations are not  provided by the law under which the borrower is incorporated or organized;
 Loans made by the agency to finance housing projects shall be subject to the following terms and conditions:
     (6)  The loan shall be subject to an agreement between the agency and the housing sponsor limiting the housing sponsor and its principals or stockholders to such rate of return on its investment in the housing project to be assisted with a loan from the agency as shall be fixed from time to time by the agency  in its regulations which shall take into account the prevailing rates of return available for similar investments and the risks associated with the development  of the project, together with factors designed to promote the objectives of providing affordable housing, encouraging investment in urban development areas, maintaining and improving the existing housing stock, and other objectives of this act;
     (1)   The loan shall be for a period of time not in excess of 50 years as determined by the agency;
but agreements entered into by the predecessors of the agency prior to the effective date of this act shall continue to be subject to any restrictions on rate of return imposed by prior law unless those  restrictions are expressly modified pursuant to regulations of the agency.  No housing sponsor which is permitted by the provisions of the law under which it is organized or incorporated to earn a return on its investment, nor any of the principals or stockholders of that housing sponsor, shall earn, accept or receive a return on investment greater than the rate of return fixed by the agency in any housing project assisted with a loan from the agency, whether upon the completion of the construction, improvement or rehabilitation of the  project, or upon the operation thereof, or upon the sale, assignment or lease  of the project to any other person, association or corporation.  Any person,  association or corporation who violates the provisions of this subsection is  guilty of a crime of the fourth degree;
     (2)   The amount of the loan shall not exceed 90% of the total project cost as determined by the agency, except that as to projects to be owned, constructed, improved, rehabilitated, operated, managed and maintained as mutual housing or by any corporation or association organized not for profit which has as one of its purposes the construction, improvement or rehabilitation of housing projects, the amount of the loan shall not exceed 100% of the total project cost as determined by the agency;
     (7)   No loan shall be executed except a loan made to a corporation or association organized not for profit which has as one of its purposes the development, construction, improvement or rehabilitation of housing projects or  for mutual housing unless the housing sponsor agrees (a) to certify upon completion of project construction, improvement or rehabilitation, subject to audit by the agency, either that the actual project cost as defined herein exceeded the amount of the loan proceeds by 10% or more, or the amount by which  the loan proceeds exceed 90% of the total project cost, and (b) to pay forthwith to the agency, for application to reduction of the principal of the loan, the amount, if any, of such excess loan proceeds, subject to audit and determination by the agency.  No loan shall be made to a corporation or association organized not for profit or for mutual housing unless the corporation or association organized not for profit or for mutual housing agrees to certify the actual project cost upon completion of the project, subject to audit and determination by the agency, and further agrees to pay forthwith to the agency, for application to reduction of the principal of the loan, the amount, if any, by which the proceeds of the loan exceed the certified project cost subject to audit and determination by the agency.
but the agency may make additional loans to a housing sponsor to which a loan by the agency for the cost of a project is outstanding if and to the extent that the agency finds that such additional loan is required to more adequately secure and protect the project or to avoid a default by the sponsor on the original loan for the cost of the project and is in the best interest of the agency and the holders of its bonds issued to finance the original loan for the cost of the project;
Notwithstanding the provisions of this paragraph, the agency may accept, in lieu of any certification of project cost as provided herein, such other assurances of the project cost in any form or manner whatsoever, as will enable  the agency to determine with reasonable accuracy the amount of the project  cost;
     (3)   The interest rate on the loan shall be established by the agency at the lowest level consistent with the agency's cost of operation and its responsibilities to the holders of its bonds;
     (8)  No loan shall be made for the construction, improvement or rehabilitation of a housing project for which tax exemption is granted by a municipality unless the tax exemption remains in effect during the entire term of the loan, unless a lesser period of tax exemption is approved by the agency;   and      (9)  The loan shall be subject to an agreement between the agency and the qualified housing sponsor which contains a provision stating the prevailing wage rate, as determined by either the Commissioner of Labor and Industry or the Secretary of the United States Department of Labor in accordance with the provisions of section 42 of this act, which can be paid to the workmen employed  in the performance of any contract for the construction or rehabilitation of  any housing project, and which stipulates that the qualified housing sponsor,  or any builder, contractor or subcontractor thereof, shall pay to such workmen  not less than the applicable prevailing wage rate pursuant to that section.
     (4)   The loan shall be evidenced by a mortgage note or bond and by a mortgage which shall be a first lien on the project and which shall contain such terms and provisions and be in a form approved by the agency.  The agency shall require the qualified housing sponsor receiving a loan or its contractor to post security in amounts related to the project cost as established by regulation and to execute such other assurances and guarantees as the agency may deem necessary and may require its principals or stockholders to also execute such other assurances and guarantees as the agency may deem necessary;
     b.  As a condition of any loan to finance a housing project, the agency shall have the power at all times during the construction, improvement or rehabilitation of a housing project and the operation thereof:
     (5)   The loan shall be subject to an agreement between the agency and the housing sponsor which will subject the housing sponsor and its principals or stockholders to limitations established by the agency as to rentals and other charges, builders' and developers' profits and fees, and the disposition of its property and franchises to the extent more restrictive limitations are not provided by the law under which the borrower is incorporated or organized;
     (6)   The loan shall be subject to an agreement between the agency and the housing sponsor limiting the housing sponsor and its principals or stockholders to such rate of return on its investment in the housing project to be assisted with a loan from the agency as shall be fixed from time to time by the agency in its regulations which shall take into account the prevailing rates of return available for similar investments and the risks associated with the development of the project, together with factors designed to promote the objectives of providing affordable housing, encouraging investment in urban development areas, maintaining and improving the existing housing stock, and other objectives of this act;
but agreements entered into by the predecessors of the agency prior to the effective date of this act shall continue to be subject to any restrictions on rate of return imposed by prior law unless those restrictions are expressly modified pursuant to regulations of the agency.  No housing sponsor which is permitted by the provisions of the law under which it is organized or incorporated to earn a return on its investment, nor any of the principals or stockholders of that housing sponsor, shall earn, accept or receive a return on investment greater than the rate of return fixed by the agency in any housing project assisted with a loan from the agency, whether upon the completion of the construction, improvement or rehabilitation of the project, or upon the operation thereof, or upon the sale, assignment or lease of the project to any other person, association or corporation.  Any person, association or corporation who violates the provisions of this subsection is guilty of a crime of the fourth degree;
     (7)   No loan shall be executed except a loan made to a corporation or association organized not for profit which has as one of its purposes the development, construction, improvement or rehabilitation of housing projects or for mutual housing unless the housing sponsor agrees (a) to certify upon completion of project construction, improvement or rehabilitation, subject to audit by the agency, either that the actual project cost as defined herein exceeded the amount of the loan proceeds by 10% or more, or the amount by which the loan proceeds exceed 90% of the total project cost, and (b) to pay forthwith to the agency, for application to reduction of the principal of the loan, the amount, if any, of such excess loan proceeds, subject to audit and determination by the agency.  No loan shall be made to a corporation or association organized not for profit or for mutual housing unless the corporation or association organized not for profit or for mutual housing agrees to certify the actual project cost upon completion of the project, subject to audit and determination by the agency, and further agrees to pay forthwith to the agency, for application to reduction of the principal of the loan, the amount, if any, by which the proceeds of the loan exceed the certified project cost subject to audit and determination by the agency.
Notwithstanding the provisions of this paragraph, the agency may accept, in lieu of any certification of project cost as provided herein, such other assurances of the project cost in any form or manner whatsoever, as will enable the agency to determine with reasonable accuracy the amount of the project cost;
     (8)   No loan shall be made for the construction, improvement or rehabilitation of a housing project for which tax exemption is granted by a municipality unless the tax exemption remains in effect during the entire term of the loan, unless a lesser period of tax exemption is approved by the agency;
 and      (9)   The loan shall be subject to an agreement between the agency and the qualified housing sponsor which contains a provision stating the prevailing wage rate, as determined by either the Commissioner of Labor and Industry or the Secretary of the United States Department of Labor in accordance with the provisions of section 42 of this act, which can be paid to the workmen employed in the performance of any contract for the construction or rehabilitation of any housing project, and which stipulates that the qualified housing sponsor, or any builder, contractor or subcontractor thereof, shall pay to such workmen not less than the applicable prevailing wage rate pursuant to that section.
     b.    As a condition of any loan to finance a housing project, the agency shall have the power at all times during the construction, improvement or rehabilitation of a housing project and the operation thereof:
     (3)   To order any managing agent, project manager or owner of a housing project to do such acts as may be necessary to comply with the provisions of all applicable laws or ordinances or any rule or regulation of the agency or the terms of any agreement concerning the project or to refrain from doing any acts in violation thereof and in this regard the agency shall be a proper party  to file a complaint and to prosecute thereon for any violations of law or  ordinances as set forth herein;
     (3)   To order any managing agent, project manager or owner of a housing project to do such acts as may be necessary to comply with the provisions of all applicable laws or ordinances or any rule or regulation of the agency or the terms of any agreement concerning the project or to refrain from doing any acts in violation thereof and in this regard the agency shall be a proper party to file a complaint and to prosecute thereon for any violations of law or ordinances as set forth herein;
     (4)   To require the adoption and continuous use of uniform systems of accounts and records for a project and to require all owners or managers of a project to file annual reports containing that information and verified in such  manner as the agency shall require, and to file at the times and on the forms  as it may prescribe, reports and answers to specific inquiries required by the  agency to determine the extent of compliance with any agreement, the terms of  the loan, the provisions of this act and any other applicable law;
     (4)   To require the adoption and continuous use of uniform systems of accounts and records for a project and to require all owners or managers of a project to file annual reports containing that information and verified in such manner as the agency shall require, and to file at the times and on the forms as it may prescribe, reports and answers to specific inquiries required by the agency to determine the extent of compliance with any agreement, the terms of the loan, the provisions of this act and any other applicable law;
     (6)   (a)  Subject to the provisions of paragraph (7) of subsection b.
     (6) (a) Subject to the provisions of paragraph (7) of subsection b.
of this section, in the event of a violation by the housing sponsor of the terms of any  agreement between the agency and the housing sponsor, or between the municipality granting tax exemption and the housing sponsor, or in the event of  a violation by the housing sponsor of this act or of the terms of the loan agreement or of any rules and regulations of the agency duly promulgated pursuant to this act, or in the event that the agency shall determine that any loan or advance from the Housing Development Fund pursuant to section 30 of this act is in jeopardy of not being repaid, the agency may, without resort to any judicial process, assume all of the powers and duties of the housing sponsor in the management and operation of the project, including but not limited to the power to receive all revenues and pay all expenses of the project and the power to control all property, including bank accounts and cash, owned by the housing sponsor.  The agency may appoint such person or persons whom the agency in its sole discretion deems advisable, including officers or employees of the agency, to perform the functions of the officers or other controlling persons of the housing sponsor.  Persons so appointed need  not be stockholders or meet other qualifications which may be prescribed by the  certificate of incorporation, bylaws or partnership agreement of the housing  sponsor.  In the absence of fraud or bad faith, persons so appointed shall not  be personally liable for debts, obligations or liabilities of the housing  sponsor.  Persons so appointed shall serve only for a period coexistent with  the duration of the violation or until the agency is assured in a manner  satisfactory to it that the violation, or violations of a similar nature, will  not recur.
of this section, in the event of a violation by the housing sponsor of the terms of any agreement between the agency and the housing sponsor, or between the municipality granting tax exemption and the housing sponsor, or in the event of a violation by the housing sponsor of this act or of the terms of the loan agreement or of any rules and regulations of the agency duly promulgated pursuant to this act, or in the event that the agency shall determine that any loan or advance from the Housing Development Fund pursuant to section 30 of this act is in jeopardy of not being repaid, the agency may, without resort to any judicial process, assume all of the powers and duties of the housing sponsor in the management and operation of the project, including but not limited to the power to receive all revenues and pay all expenses of the project and the power to control all property, including bank accounts and cash, owned by the housing sponsor.  The agency may appoint such person or persons whom the agency in its sole discretion deems advisable, including officers or employees of the agency, to perform the functions of the officers or other controlling persons of the housing sponsor.  Persons so appointed need not be stockholders or meet other qualifications which may be prescribed by the certificate of incorporation, bylaws or partnership agreement of the housing sponsor.  In the absence of fraud or bad faith, persons so appointed shall not be personally liable for debts, obligations or liabilities of the housing sponsor.  Persons so appointed shall serve only for a period coexistent with the duration of the violation or until the agency is assured in a manner satisfactory to it that the violation, or violations of a similar nature, will not recur.
Persons so appointed shall serve in such capacity without  compensation, but shall be entitled to be reimbursed, if and as the certificate  of incorporation, bylaws or partnership agreement of the housing sponsor may provide, for all necessary expenses incurred in the discharge of their duties  as determined by the agency;  and      (b)   the provisions of section 18 of P.L.
Persons so appointed shall serve in such capacity without compensation, but shall be entitled to be reimbursed, if and as the certificate of incorporation, bylaws or partnership agreement of the housing sponsor may provide, for all necessary expenses incurred in the discharge of their duties as determined by the agency;
and      (b)   the provisions of section 18 of P.L.
(C.40A:20-18) concerning housing projects in financial difficulty shall not apply to housing projects financed by the agency;
431 (C.40A:20-18) concerning housing projects in financial difficulty shall not apply to housing projects financed by the agency;
and      (7)   The provisions of this subsection and this act pertaining to the regulation of housing sponsors shall be for purposes of protecting the collateral for any loan or loans;  implementing or enforcing any condition, requirement or criterion for loans as provided in this act or other applicable law;  and securing the rights and remedies of lenders and bond holders to the extent of the undertakings of the agency.  Subject to the foregoing, the agency  shall permit, provide for and encourage the right of local housing sponsors to  exercise their own initiative and competence in the administration of their  assets and the conduct and operation of housing projects and exercise their  rights and responsibilities to the fullest extent permitted by law.  Therefore,  the agency shall exercise its remedies and powers under paragraph (6) of this  subsection only with regard to material violations and only after reasonable  notice and reasonable opportunity to correct the violation is provided to the  housing sponsor in accordance with regulations adopted by the agency.
and      (7)   The provisions of this subsection and this act pertaining to the regulation of housing sponsors shall be for purposes of protecting the collateral for any loan or loans;
implementing or enforcing any condition, requirement or criterion for loans as provided in this act or other applicable law;
and securing the rights and remedies of lenders and bond holders to the extent of the undertakings of the agency.  Subject to the foregoing, the agency shall permit, provide for and encourage the right of local housing sponsors to exercise their own initiative and competence in the administration of their assets and the conduct and operation of housing projects and exercise their rights and responsibilities to the fullest extent permitted by law.  Therefore, the agency shall exercise its remedies and powers under paragraph (6) of this subsection only with regard to material violations and only after reasonable notice and reasonable opportunity to correct the violation is provided to the housing sponsor in accordance with regulations adopted by the agency.
       d.    As used in this section, “market rate unit” means a housing unit for which occupancy is not subject to limitations based on tenant income.
     d.    As used in this section, “market rate unit” means a housing unit for which occupancy is not subject to limitations based on tenant income.
(cf:
       11.  This act shall take effect immediately.
P.L.1983, c.530, s.7)        11.  This act shall take effect immediately.                                          Establishes “New Jersey Foreclosure Prevention Act.”
       Approved March 9, 2021.
⬇ Download PDF
View plain text versions (8)

Sponsorship breakdown

Export CSV (upgrade) →

0 sponsors · 0 co-sponsors · 120 not signed on

Sponsors (0)

None.

Co-sponsors (0)

None.

Not signed on (120)

120 members have not signed on to this bill.

Show all 120 →

"Not signed on" means a member has not sponsored or co-sponsored this bill — it does not imply opposition. Members flagged Voted No have a recorded No vote on this bill.

Whip count is in markup. Polling the chamber and every recorded vote this session. Only the first open is slow. It’s instant for you after this. Calling the roll · Tallying · Engrossing
Cross-referencing the record. Reading this bill against every other bill in the corpus by meaning, not keywords. Only the first open is slow. It’s instant for you after this. Matching · Ranking · Engrossing

Frequently asked questions

What is the current status of A5130?
This bill died with 2020-2021 Regular Session. It reached “Introduced” and never advanced before the session ended, so it can no longer move — a new version would have to be reintroduced in the current session.
Where can I track A5130?
Track A5130 free on One Click Politics — get push/email alerts when it moves.

Make your voice heard on A5130

Find the representatives who decide this bill and tell them where you stand — for yourself, or mobilize your whole list in one click with One Click Politics advocacy software.

Find my representatives → Run a campaign

Stay ahead of A5130

Last checked for changes 3 months ago · updated continuously

One Click Politics tracks every bill in Congress and all 50 states.

Track this bill →