New Jersey may start taking a more direct role in turning foreclosed homes into affordable housing.
The New Jersey State Senate approved on Monday a bill allowing towns to buy foreclosed vacancies to resell or rent them out as housing units. The bill also establishes the New Jersey Foreclosure Relief Corp., which would have the ability to purchase, sell, or rent foreclosed homes.
The program gives cities a chance to buy a recently foreclosed home using New Jersey's $268 million housing trust. If the city doesn't step in, the New Jersey Relief Corp. can take over by selling bonds to acquire and then sell or rent the house. Cities will receive affordable housing credits based on the number of homes they sell or rent to low-income buyers.
The state is currently waiting to see if Governor Chris Christie will sign the bill.