"Affordable Housing Insurance Stabilization Act"; establishes program within HMFA to provide financial assistance to qualified affordable housing property experiencing material insurance cost increases; appropriates $25 million.

S4372

SENATE, No. 4372

STATE OF NEW JERSEY

222nd LEGISLATURE

�

INTRODUCED JUNE 1, 2026

Sponsored by:

Senator� TROY SINGLETON

District 7 (Burlington)

SYNOPSIS

���� �Affordable Housing Insurance Stabilization Act�;
establishes program within HMFA to provide financial assistance to qualified
affordable housing property experiencing material insurance cost increases;
appropriates $25 million.

CURRENT VERSION OF TEXT

���� As introduced.

��

An Act
concerning the stabilization of insurance costs for
certain affordable housing and supplementing Title 55 of the Revised Statutes.

����
Be It
Enacted
by the Senate and General Assembly of
the State of New Jersey:

���� 1.��� This act shall be known
and may be cited as the �Affordable Housing Insurance Stabilization Act.�

���� 2.��� a.�������� As used in
P.L.��� , c.��� (C.������� ) (pending before the Legislature as this bill):

���� �Agency� means the New Jersey
Housing and Mortgage Finance Agency.

���� �Material insurance cost
increase� means a cumulative increase of at least 40 percent over a 24-month
period, or such other threshold as determined by the agency.

���� �Special needs housing� means
permanent supportive housing or a community residence that is primarily for
occupancy by individuals with physical, intellectual, or developmental
disabilities who shall occupy such housing as their usual and permanent
residence, together with any structures or facilities, appurtenant or ancillary
thereto.

���� �Supportive housing� means permanent
or transitional housing for individuals combined with certain services as
determined by individual needs, which may change over time.

���� �Qualified affordable housing
property� means:

���� (1)�� a 100 percent
deed-restricted affordable housing development; or

���� (2)�� a mixed-income
development in which at least 20 percent of units are deed-restricted
affordable housing units.

���� b.��� There is established a
permanent program, to be administered by the New Jersey Housing and Mortgage
Finance Agency, to provide limited financial assistance to qualified affordable
housing properties experiencing a material insurance cost increase.� An
application for limited financial assistance pursuant to this subsection shall
include, but not be limited to, the address of the qualified affordable housing
properties, documentation of attempts to secure market-rate insurance
alternatives and a certification of financial need.

���� c.���� In administering the
program, the agency shall prioritize limited financial assistance to qualified
affordable housing properties that:

���� (1)�� service very low- or
low-income households;

���� (2)�� are subject to expiring
affordability restrictions within 10 years;

���� (3)�� demonstrate risk of
financial distress, deferred maintenance, or capital shortfall;

���� (4)�� provide supportive
housing, senior housing, or special needs housing; or

���� (5)�� agree to extend
affordability controls for a minimum period established by the agency.

���� d.��� A qualified affordable
housing property that applies for limited financial assistance pursuant to
subsection b. of this section shall demonstrate that they have first used
available project reserves above a defined threshold, as determined by the
agency, prior to seeking assistance; document attempts to secure market-rate
insurance alternatives; and certify financial need

���� e.���� As a condition of
receiving limited financial assistance pursuant to subsection b. of this
section, a qualified affordable housing property shall maintain the property�s
habitability and code compliance; preserve or extend affordability
restrictions; and submit an annual report to the agency on their financial
condition and the use of program funds.

���� f.���� The agency shall
provide limited financial assistance to a qualified affordable housing property
for a period of no more than three years, unless there exists exceptional
circumstances, as determined by the agency, that limited financial assistance
is necessary in excess of this period.� The agency shall provide a qualified
affordable housing property limited financial assistance in an amount not to
exceed $250 annually per unit and $1,000,000 annually per project in accordance
with guidelines established by the agency and the conditions imposed for
limited financial assistance pursuant to subsection d. of this section. �

���� g. The Executive Director of
the New Jersey Housing and Mortgage Finance Agency, in consultation with the Commissioner
of Community Affairs, shall submit an annual report to the Legislature,
pursuant to section 2 of P.L.1991, c.164 (C.52:14-19.1), detailing the units
preserved, income levels served, insurance increases offset, affordability
extensions secured, and physical conditions outcomes.

���� h.��� There is established in
the agency an Affordable Housing Insurance Stabilization Fund for the purpose
of providing the moneys necessary to administer the program established
pursuant to subsection b. of this section. �The agency shall ensure that the
amounts in the fund shall not exceed $25,000,000 at any time, unless otherwise
authorized by the Legislature.� Notwithstanding the provisions of any law to
the contrary, the agency may transfer unencumbered appropriated moneys to the fund,
subject to approval by the Commissioner of Community Affairs.

���� 3.��� The Executive Director
of the New Jersey Housing and Mortgage Finance Agency, in consultation with the
Commissioner of Community Affairs, shall, in accordance with the
�Administrative Procedure Act,� P.L.1968, c.410 (C.52:14B-1 et seq.), adopt
rules and regulations as necessary to effectuate the provisions of P.L.��� ,
c.��� (C.������� ) (pending before the Legislature as this bill) including, but
not limited to, an application process and requirements for a qualified
affordable housing property, project reserve threshold limits necessary for limited
financial assistance, and exceptional circumstances for limited financial
assistance to exceed a period of three years.

���� 4.��� There is appropriated
$25,000,000 from the General Fund to the Affordable Housing Insurance
Stabilization Fund, established pursuant to subsection h. of section 2 of P.L.���
, c.��� (C.������� ) (pending before the Legislature as this bill), to
effectuate the purposes of that section.

���� 5.��� This act shall take
effect immediately and shall expire four years after enactment, unless
reauthorized.

STATEMENT

���� This bill establishes a
permanent program, to be administered by the New Jersey Housing and Mortgage
Finance Agency (the agency), to provide limited financial assistance to
qualified affordable housing properties experiencing a material insurance cost
increase.

���� The bill provides that an
application for limited financial assistance is to include, but not be limited
to, the address of the qualified affordable housing properties, documentation
of attempts to secure market-rate insurance alternatives and a certification of
financial need.

���� In administering the program,
the bill requires the agency to prioritize limited financial assistance to
qualified affordable housing properties that:

�

service very low- or low-income households;

�

are subject to expiring affordability restrictions within 10
years;

�

demonstrate risk of financial distress, deferred maintenance, or
capital shortfall;

�

provide supportive housing, senior housing, or special needs
housing; or

�

agree to extend affordability controls for a minimum period
established by the agency.

���� The bill requires that, as a
condition of receiving limited financial assistance, a qualified affordable
housing property recipient shall maintain the property�s habitability and code
compliance; preserve or extend affordability restrictions; and submit an annual
report to the agency on their financial condition and the use of program funds.

���� The bill requires a qualified
affordable housing property that receives limited financial assistance pursuant
to the bill to first use available project reserves above a defined threshold
to be determined by the agency; document attempts to secure market-rate
insurance alternatives; and certify financial need.

���� The bill provides that the
agency is to provide limited financial assistance for a period of not more than
three years, unless there exists exceptional circumstances, as determined by
the agency, that limited financial assistance is necessary in excess of this
period.� The agency is to provide limited financial assistance to a qualified
affordable housing property in an amount not to exceed $250 annually per unit
and $1,000,000 annually per project in accordance with guidelines established
by the agency and the conditions imposed for limited financial assistance
pursuant to the bill.�

���� The bill requires the
Executive Director of the New Jersey Housing and Mortgage Finance Agency, (the
director) in consultation with the Commissioner of Community Affairs, to submit
an annual report to the Legislature, pursuant to section 2 of P.L.1991, c.164
(C.52:14-19.1), detailing the units preserved, income levels served, insurance
increases offset, affordability extensions secured, and physical conditions
outcomes.

���� The bill establishes in the
agency an Affordable Housing Insurance Stabilization Fund (the fund) for the
purposes of administering the moneys necessary to effectuate the purposes of
the bill.

���� The bill directs the director,
in consultation with the Commissioner of Community Affairs, to adopt rules and
regulations as necessary to effectuate the provisions of the bill.

���� The bill appropriates $25
million from the General Fund to the fund for the purposes of the bill.