ASSEMBLY HOUSING COMMITTEE

STATEMENT TO

ASSEMBLY, No. 1050

STATE OF NEW JERSEY

DATED:  OCTOBER 8, 2020

      The Assembly Housing Committee reports favorably Assembly Bill No. 1050.

      This bill revises certain aspects of the Home Mortgage Finance Agency laws to encourage participation by qualified minority and women owned development firms.  The bill directs the agency to establish incentives and priorities to promote participation by minority and women owned businesses, so that a realistic opportunity exists for these firms to successfully participate in providing low and moderate-income housing options to residents of the State.  The bill specifically encourages the development of multi-family rental housing and home ownership opportunities for low and moderate income families participating developing firms to satisfy existing bonding requirements through a valid letter of credit and/or traditional performance bonding.

      The current financing programs that foster the production of affordable housing require changes to provide for the effective implementation of these programs by the New Jersey Housing and Mortgage Finance Agency.  Current law does not provide the necessary authority and flexibility to meet the State’s housing priorities and address the demands for financing to allow for the effective development of affordable housing, especially by minority and women owned businesses.

      This bill was pre-filed for introduction in the 2020-2021 session pending technical review.  As reported, the bill includes the changes required by technical review, which has been performed.