Morris Patriots !

Northern NJ Region

Serving Northern, NJ
info@MorrisPatriots.org

Foreclosure Act

What's wrong with this legislation?

( S2157 )

As is increasingly the trend, each new version becomes more and more obscure, requiring ever-more sophisticated analysis to figure out what sponsors and cosponsors are up to. This hides true intent from the Public and is VERY BAD POLICY.

Realtors and real estate professional, even in these difficult economic times, say the average "foreclosure" is resolved in less than 3 years - but this legislation would solve that 3-year problem with a 30-YEAR DEED RESTRICTION (which could then be extended!)

1) This is a bank bailout bill. It would take effect IMMEDIATELY upon becoming law. It is also designed to further the Democrat strategy of building fingers into Republican areas, doing so by means of activities they can financially control.

2) S2157 would establish a new program, initially for five years, within the Housing & Mortgage Finance Agency, TO PURCHASE FROM INSTITUTIONAL LENDERS ((bailout)) foreclosed residential properties. The properties would then be re-sold WITH 30-YEAR DEED RESTRICTIONS, LIMITING THEIR USE SOLELY FOR "LOW AND MODERATE INCOME AFFORDABLE HOUSING". (that means up to 80% of median household income!)

3) "Affordable Housing" is a catch-all term that allows properties to be used to house individuals and families who generally cannot afford market-rate housing. Yet how, then, can they be expected to pay taxes, property upkeep, and similar ongoing costs to maintain these properties?

Note: References to including "individuals with special needs," which produced significant objection in Sen. Lesniak's S1566 have been removed from his new S2157. However, they could be added at a laster time.

4) By changing the earlier bill (S1566) to create a program wholly within NJHMFA, rather than create a separate corporation, the sponsors hope to overcome objections, but like the earlier version, it still ISOLATES this activity from oversight by the Governor or Legislature. This, in our view, is dangerous.

5) This bill gifts to "no more than two community development financial institutions" ((warning: this is narrowly defined and probably favors specific political contributors)) EXCLUSIVE RIGHT TO NJMFA FUNDS AND RESOURCES. They will serve as contractors to implement the purchases and possibly the ongoing ownership of the new "affordable housing."

6) The NJ Housing & Mortgage Finance Agency has a questionable record of tracking the funds for which it is responsible.

7) This Act pressures municipalities into purchasing foreclosed properties, then dedicating them to Affordable Housing purposes for 30 YEARS - or face the state doing so. It threatens them with the loss of Affordable Housing Trust Funds and state usurpation of authority if they don't do it themselves.

8) This Act would force many municipalities to create more low-income and affordable housing than they are otherwise required to create, simply because homes are in foreclosure.

9) This Act reduces or eliminates municipal authority over the types and location of affordable housing in the community, and bypasses existing planning and zoning processes, ignores existing infrastructure needs (such as nearby public transportation)

10) This Act provides NO opportunity for public hearings, public input or comment prior to purchase and deed-restriction of housing within neighborhood housing areas

11) The Act would appear to impose upon municipalities responsibility for the care, upkeep and administration, of housing units so acquired - including marketing, determining income/eligibility, selecting purchasers/tenants, collecting rents, etc.

12) By locating low-income and other defined occupants in housing that might not be of a suitable scale, price-range or property location, and then "locking" the property into that use for 30 YEARS, the Act could cause long-term financial harm to the host municipality; could lower adjacent property values and municipal tax income, and thereby force tax hikes to cover the shortfalls

13) Locating low- and moderate-income affordable housing occupants and deed-restricting such properties for 30 YEARS, without cnsideration for changes in market conditions which might occur during that time, would in most cases reduce the property value of both the units purchased and neighboring homes

14) This legislation also enables a 7-member APPOINTED BOARD - not accountable to municipal, county or any state official (except the Governor) and NOT ACCOUNTABLE TO THE PUBLIC, to make all decisions related to this bill

15) In repeated instances, the Act "peels off" large chunks of a municipality's Affordable Housing Trust Funds to enrich and fund this new independent Corporation

16) The bill enables this unaccountable board to purchase property and THEN CONVEY IT TO ANOTHER PUBLIC AGENCY, A COMMUNITY DEVELOPMENT CORPORATION, OR EVEN A DEVELOPER "for occupancy as affordable housing subject to a 30-year deed restriction"

17) IN AN UNEXPLAINED PROVISION, THIS BILL ALLOWS THIS BOARD TO ESTABLISH CIRCUMSTANCES WHEN IT COULD USE BONDING, FEDERAL, STATE FUNDS AND MUNICIPAL AFFORDABLE HOUSING TRUST FUNDS TO PURCHASE, SELL, LEASE OR CONVEY **MARKET-RATE** HOUSING UNITS OR OFFER THEM LOANS

18) THE BILL AUTHORIZES LENDERS TO BRING SUMMARY ACTIONS TO FORECLOSE MORTGAGES - further eroding the normal legal process

19) In reviewing the similar earlier bill, S1566, the Office of Legislative Services, in numerous paragraphs, said IT CANNOT DETERMINE THE FINANCIAL IMPACT OF THIS BILL ON THE STATE, HOUSING MORTGAGE FINANCE AGENCY OR AFFECTED MUNICIPALITIES !!!

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Please read the bill and Statement for yourself, then reach out to your legislators and the Governor to ask them to kill this bill.

IN GOD WE TRUST

"The only thing necessary for the triumph of evil

over good is for good men to do nothing - Edmund Burke

Serving Northern, NJ
info@MorrisPatriots.org