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TRENTON – Legislation sponsored by Senator Ronald L. Rice to require that a property with an affordable housing deed restriction remain as an affordable unit even if the property is foreclosed on was approved unanimously by the Senate Community and Urban Affairs Committee today.

The failure of subprime mortgage lenders to exercise adequate underwriting due diligence for their loans has resulted in a huge increase in foreclosures nationwide as well as panic in the nation’s financial markets,” said Senator Rice, D-Essex. “New Jersey is experiencing foreclosure activity that ranks higher than the national average. Many of the units currently in foreclosure were part of an affordable housing program, and if we do not act fast on this legislation, we will lose even more affordable housing units in our State.”

TRENTON – Senator Ronald L. Rice recently introduced a measure to require that properties that were created as affordable housing units will maintain that designation even if the property is resold due to a foreclosure.

“The lack of affordable housing has long been a major problem facing New Jersey residents, and unfortunately, tough economic times have only pushed our low to moderate income families into foreclosures,” said Senator Rice, D-Essex and Chairman of the Senate Community and Urban Affairs Committee.