TRENTON –Legislation sponsored by Senators Ronald L. Rice and John A. Girgenti, to assist homeowners who are in the foreclosure process was enacted today.
The enacted bill, S-8, appropriates $12.5 million from the Long Term Funding Obligation and Capital Expenditure Fund to the Department of Community Affairs (DCA) and the Administrative Office of the Courts (AOC). The DCA will receive $12million in grant-in-aid funds to provide mediation and counseling opportunities through the New Jersey Housing and Mortgage Finance Agency, and the AOC will receives $500,000 to provide mediation services prior to foreclosure proceedings.
“This bill is part of a multi-bill package aimed at providing an economic stimulus and relief at a time of national economic crisis,” said Senator Girgenti, D-Bergen and Passaic. “By investing some State funds we can get over $51 million in federal money to help those facing foreclosure. The combined funding will go along way toward helping families in New Jersey.”
According to Senator Rice, D-Essex, “The new law allows the State to receive $51,471,000 in federal funds to the DCA for the Neighborhood Stabilization Program.
“When a home is foreclosed upon, it isn’t just families who are affected,” said Senator Ronald L. Rice (D-Essex). “We have seen, first hand, that the negative impact creates a domino effect that leads to an increase in crime and a decrease in area property values.”