SENATE COMMUNITY AND URBAN AFFAIRS COMMITTEE

STATEMENT TO

SENATE, No. 3080

with committee amendments

STATE OF NEW JERSEY

DATED:  JUNE 10, 2021

      The Senate Community and Urban Affairs Committee reports favorably and with committee amendments Senate Bill No. 3080.

      As amended, this bill would provide a closing credit for certain resident first-time homebuyers.  Specifically, the bill provides that for the duration of the funds appropriated under this bill and through any subsequent appropriation from the General Fund, a closing cost credit of one percent of a home purchase price would be covered for a resident first-time homebuyer who both meets the eligibility requirements and participates in the New Jersey Housing and Mortgage Finance Agency’s (“HMFA”) First-Time Homebuyer Mortgage Program or Down Payment Assistance Program, or both.  Additionally, a resident first-time homebuyer would be required to attend a homebuyer counseling course offered by the federal Department of Housing and Urban Development or meet with a housing counselor approved by the HMFA.

      This bill would appropriate from the General Fund to the HMFA the sum of $20 million for the use by the HMFA to provide the closing cost credit to a resident first-time homebuyer.

COMMITTEE AMENDMENTS:

      The committee amendments clarify that a closing cost credit would be provided for certain resident first-time homebuyers for the duration of the funds appropriated under this bill and any subsequent appropriation from the General Fund.  The committee amendments also make technical corrections to the bill.