Stabilizing the New Jersey Housing Market

The New Jersey State Assembly is attempting to stabilize the local housing market with bill A2168. Among other things, it would allow the formation of the New Jersey Foreclosure Relief Corporation for five years.

Under bill A2168, municipalities would have 45 days to evaluate bank foreclosures in their area. They could opt to purchase them as designated affordable housing (and receive a 2 for 1 credit against the required number). Or they could allow the corporation to purchase the home, locking it in as affordable housing for 30 years.

Additionally, the corp. would be able to sell bonds for capital to buy other New Jersey bank foreclosures for sale at market prices.

While most legislators, lenders and realtors back the measure, state director Steve Lonagan leading the conservative Americans for Prosperity group are fighting it, saying it will increase crime, further reduce home values and increase property taxes.

One of the sponsors of the bill proclaims that a scare tactic. Across the nation statistics show that unoccupied homes are more likely to cause an increase in crime and pull down home values, rather than ones occupied as affordable housing.