Sponsored by:
Senator TROY SINGLETON
District 7 (Burlington)
SYNOPSIS
Concerns standards for distribution of certain HMFA loans for housing projects during state of emergency.
CURRENT VERSION OF TEXT
As introduced.
An Act concerning certain emergency powers of the New Jersey Housing and Mortgage Finance Agency and supplementing P.L.1983, c.530 (C.55:14K-1 et seq.).
Be It Enacted by the Senate and General Assembly of the State of New Jersey:
1. a. During a state of emergency declared by the Governor pursuant to P.L.1942, c.251 (C.App. A:9-33 et seq.) and while such state of emergency is in effect, the agency may make an eligible loan to a housing sponsor for a project to finance the construction, improvement, reconstruction, renovation or rehabilitation of a project.
b. The agency, under this section, may exempt an eligible loan from the requirements of subsection c. of section 6 and paragraphs (2), (4), (5), (6), (7), and (8) of subsection a. of section 7 and subsections a., b., d., and e. of section 8 of P.L.1983, c.530 (C.55:14K-6, C.55:14K-7, and C.55:14K-8).
c. To receive an eligible loan from the agency under this section, a housing sponsor must certify, under penalty of perjury, that the eligible loan is necessary due to factors or conditions resulting from an “emergency” as such term is defined pursuant to section 3 of P.L.1953, First Sp.Sess., c.438, (C.App. A:9-33.1).
d. If a project has suffered physical damage, a housing sponsor who receives an eligible loan under this section must:
(1) make a claim or claims against all policies of insurance insuring the project; and
(2) assign to the agency the right to receive the proceeds of any claims made on all policies of insurance with respect to the project for the agency to credit against the outstanding principal balance of the eligible loan made under this section or against any other amounts that may be due under any eligible loan or loans made to the housing sponsor with respect to the project. Any excess amounts remaining after payment of all principal, interest and any other amounts due to the agency shall be returned to the housing sponsor within thirty days.
2. This act shall take effect immediately.
STATEMENT
This bill would modify standards for the distribution of eligible loans to housing sponsors for housing projects during certain states of emergency.
Specifically, the during a state of emergency declared by the Governor, this bill would expressly authorize the New Jersey Housing and Mortgage Finance Agency (“HMFA”) to make eligible loans to housing sponsors to finance the construction, improvement, reconstruction, renovation, or rehabilitation of housing projects. The bill would exempt these loans from certain terms and conditions with which HMFA eligible loans ordinarily have to comply. However, to receive an eligible loan under the bill, a housing sponsor would be required to certify, under penalty of perjury, that the eligible loan is necessary due to factors or conditions resulting from an emergency, as defined in existing law.
If a housing project has suffered physical damage, a housing sponsor who receives an eligible loan under the bill would be required to: (1) make claims against all policies of insurance involving the project; and (2) assign HMFA the right to receive the proceeds of any claims made on all policies of insurance concerning the project, so that HMFA is able to credit those proceeds against the principal balance of the loan made under bill or other amounts due for other eligible loans to the housing sponsor concerning the project. The bill provides that any excess amounts remaining after payment of all principal, interest and any other amounts due to HMFA would be returned to the housing sponsor within thirty days.