From the Star Ledger:
Legislation that would create a fund to help low and moderate income families afford foreclosure prevention services was passed out of committee Thursday and can now be voted on by the entire Assembly, officials said.
The bill, which is sponsored by Assemblywoman Bonnie Watson Coleman, would establish an $800 surcharge on each foreclosure complaint filed in New Jersey, which would be used to create the Foreclosure Prevention and Neighborhood Stabilization Trust Fund within the Department of Community Affairs, a news release from the Assembly Democrats office said.
“Foreclosure involves the loss of a family’s home, which is often the family’s most valuable asset, and foreclosure undermines the stability, health and economic vitality of neighborhoods,” Watson Coleman said.
Watson Coleman said foreclosures also have a negative impact on property values in the state and cost the state millions in expenses.
If the bill becomes law, the DCA will be able to provide up to $10 million from the proposed fund to nonprofits for the purpose of maintaining or expanding foreclosure prevention programs, the bill said.
The bill was passed by the Housing and Community Development Committee Thursday in 4-1 party line vote, with one abstention.