“Abandoned properties are a burden to municipalities,” Assemblyman Troy Singleton (D-Burlington) said in a statement, “especially ones already struggling financially. … This bill would not only help rid municipalities of these troublesome properties, but replace them with affordable housing.”
Under the measure approved by the Assembly Housing and Community Development Committee, the municipality with the foreclosed property would have the chance to buy it using its own funds or money from its affordable housing trust fund.
If a municipality declines, the corporation could buy the foreclosed property and transfer the deed to a community development organization or a developer.
The money for the corporation would come from bonds issued by the HMFA as well as any proceeds from a realty transfer fee once it exceeds $75 million.
Assemblywoman Annette Quijano (D-Union), said, “Communities need healthy neighborhoods to be economically strong and people need housing they can afford. This bill helps us fulfill both needs by taking stagnant properties and putting them back to work.”
The measure moves next to the full Assembly for a vote.