HMFA Board Approves Revisions to NJ HomeSeeker Down Payment Assistance Program Guidelines and New Multifamily FRM-PHA Pre-Development Loans
TRENTON - The New Jersey Housing and Mortgage Finance Agency (HMFA) Board at its March meeting approved key agenda items that will expand homebuyer assistance programs and provide short term pre-development loans for public housing authorities to determine scope of needed repairs.
In its ongoing effort to implement new programs that help individuals and families realize their dreams of homeownership, the HMFA Board approved revisions to the NJ HomeSeeker Down Payment Assistance Program Guidelines. The goal of the Home Seeker Down Payment Assistance Program is to assist in the stabilization of targeted counties hardest hit by the foreclosure crisis in New Jersey.
“HomeSeeker will provide a flat $16,000 assistance loan, at 0 percent interest, which will be forgiven after five years, provided the homebuyer remains in the home,” Marchetta explains. “This program will essentially jumpstart the homebuying process for individuals and families who qualify for purchases in targeted HomeSeeker neighborhoods, and who might otherwise find themselves short on cash for down payment and/or closing costs.”
In December 2016, the HMFA Board approved the allocation of more than $20 million for the Home Seeker program. That funding is part of the additional Troubled Asset Relief Funds obligated by the U.S. Treasury in February 2016 to the Hardest Hit Fund Program’s fifth round of funding totaling $103,085,818.
HMFA Executive Director Anthony L. Marchetta points out that the launch of HomeSeeker will ease the homebuying process for qualifying individuals and families who need upfront cash.
The HMFA Board also approved six pre-development loan commitments through the Fund for Restoration of Multifamily Public Housing Authority Set-Aside Program (FRM-PHA) to provide seed money to PHAs seeking financing. The pre-development loans will allow the Public Housing Authorities to pay for eligible up-front costs to determine if the proposed scope of rehabilitation work is feasible. The FRM-PHA offers subsidies in the form of loans to owners capable of managing large multi-family housing developments.
The six developments that received FRM-PHA Pre-Development Loan commitments are Monroe Gardens, Andrew Jackson Gardens, Christopher Columbus, Adams Gardens and Harrison Gardens, all located in Hoboken, Hudson County; and Pecks Beach, in Ocean City, Cape May County.
HMFA responds to the needs of New Jersey residents by implementing creative programs and establishing alliances that fund affordable home mortgages for first-time home buyers; promote construction and rehabilitation of rental housing; encourage mixed-income, owner-occupied housing growth as a means to stabilize urban neighborhoods; advance the growth and development of municipalities; contribute to the quality of life of older adults, the disabled and those with special housing needs; and formulate partnerships to foster the economic development of New Jersey and the personal development of its residents.
For more information about HMFA programs, please visit www.njhousing.gov