Thursday, February 16, 2012

New Plan to Turn Foreclosures Into Affordable Housing.

NJ State Sen. Ray Lesniak (D-20), Elizabeth, introduced a bill today that would establish a central agency under the New Jersey Housing and Mortgage Finance Agency (HMFA) to use funds from the State Affordable Housing Trust Fund to purchase and deed-restrict foreclosed properties for affordable housing.

The Lesniak bill is supported by the New Jersey League of Municipalities along with trade associations for the banking, construction and real estate industries. George Vallone, a Hoboken builder who is a vice president of the N.J. Builders Association, said it would help avert a “death spiral in home values if all these homes are dumped on the market by banks that want to unload them.”

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