NJ lawmakers trying to tackle affordable housing

Committees advance several bills to fight the crisis

By: Ashley Balcerzak
NorthJersey.com
USA Today Network - New Jersey

..... New Jersey families are struggling to find affordable rentals, to buy new homes and to pay sky-high property taxes. To relieve some of that pressure and combat discrimination in the housing market, two legislative committees advanced a handful of bills Thursday [06/02/2022] to improve affordability in the garden State. And New Jersey is currently flush with cash, with the state's tax revenues about $7 billion over what the governor predicted three months ago. Will some of the unexpected funds be used to try to create more affordable housing?
..... Getting a committee vote is the first major step after lawmakers introduce a bill. The legislation would need a full Assembly and Senate vote and Governor Phil Murphy's signature to become law.
.... Here are the bills that moved forward Thursday:

Security deposit aid

..... Nine counties would launch a three-year pilot program to help renters pay their security deposit, under S515. The counties are Passaic, Union, Essex, Hudson, Camden, Gloucester, Atlantic, Burlington and mercer counties. The bill would move $450,000 from general funds to pay for the program, which would be available to families making 30% or less of their county's median income. Senators voted the bill out of committee, but lawmakers have not introduced a companions bill in the Assembly.

Appraisal discrimination

..... Appraisers and appraisal companies could have their licenses or certifications revoked if they discriminate during an appraisal based on the seller's race or national origin, under S777.
..... A Biden Administration interagency task force study found that "on average, homes in majority-Black neighborhoods are valued at less than half of those in neighborhoods with few or no Black residents."
..... Junea Williams, an attorney and Newark resident, described three times she beloved she had "fallen victim to bias appraisals ... based off of perceptions and assumptions of the Newark neighborhoods" where she purchased her first home.
..... In 2017, Williams put her Society Hill townhouse up for sale, and a buyer offered $240,000, which was $23,000 over her asking price. But the buyer's bank came back with an appraisal of $195,000, or $45,000 less than the buyer offered.
..... "I was creastfallen and I was really confused as to how an appraiser could value my house at such a low number, given its prime location downtown and all of the improvements i had put into the house," Williams said. "My Realtor had previously warned me that there were what he called 'funky things' happening with the appraisals in Newark at that time essentially valuing the homes in Newark at a lower level than the market was dictating, resulting in these massive gulfs."
.....In the end, Williams and the buyer agreed to $217,000, or $23,000 less than originally offered. Williams said she was lucky the buyer had enough liquidity to offset the gulf, since the bank provides a mortgage up to the appraised value of the home.
..... And one undervalued home can have a ripple effect, Vivian Cox Fraser, president and CEO of the Urban League of Essex County, told the senate Community and Urban Affairs Committee.
..... "A low home appraisal can become a comp[arison] for other transactions, thereby lowering home values in the entire community," Cox Franser said.
..... The bill would also require the Division of Consumer Affairs to publish a report by mid-2024 with demographic information on owners, buyers or agents reporting alleged discriminatory appraisals. The bill moved out of committee with four yes votes. Senator Holly Schepiisi, R-Bergen, abstained. She objected that amendments to the bill removed the word "knowingly" before :discriminate." Andrea McChristian, law and policy director at the nonprofit institute for Social Justice, said "knowingly" was removed to ailing with the federal fair Housing Act.

LLCs buying up residential properties

..... A limited liability company buying a one- or two-unit residential property would be required to disclose the LLC's registers agent or the name of a member of the company when it files a deed, under S564.

Refunds against owed property taxes

..... A taxpayer could credit his or her gross income tax refunds against delinquent local property taxes, under S1777. This practice is currently allowed with homestead property tax rebates. Senators voted the bill out of committee, but lawmakers have not introduced a companion bill in the Assembly.

Replace lead pipes

..... Senators discussed - but did not vote on - S384, which would require buyers and sellers to certify that they will replace service lines containing lead before certain properties can be sold. Senator Troy Singleiton D-Burlington, said amendments would likely need to be added to explain who would be responsible for paying to replace the pipes.
..... The bill also would add questions about lead pipes and service lines on the property condition disclose statements, listing any problems and basic information about the property. Lawmakers have not introduced the bill in the Assembly.

Tax credit for first-time buyers

..... Certain first-time home-buyers could be eligible for a tax credit against their income taxes of A2246 is singed into law. The New Jersey Homebuyers Tax Credit Program would pass out 4100 million in credits over four years and would be first-come, first served.
..... A credit would be 5% of the price of the property, or $15.000, whichever is less, and the taxpayer must live in the home for three years after buying the house.
.... An eligible family, median income. The property cannot cost more than $500,000 to be eligible.
..... Members of the Latino Action Network Foundation and Fair Share Housing Center testified against the bill, saying it would further increase the racial wealth gap by primarily helping families who have the funds available to purchase a home, as opposed to focusing on programs such as down payment assistance.
..... "I'm wondering who this benefits - if you are a low-income person, and you don't have to itemize on your tax returns, this seems like we're furthering the gap rather than addressing the gap," said Assemblywoman Mila Jasey, D-Essex. Assembly members voted to advance the bill despite the concerns.

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