Bill Text: NJ S4372 | 2026-2027 | Regular Session | Introduced
Bill Title: "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.
Sponsorship: Partisan Bill (Democrat 1)
Status: (Introduced) 2026-06-01 - Introduced in the Senate, Referred to Senate Community and Urban Affairs Committee [S4372 Detail]
Download: New_Jersey-2026-S4372-Introduced.html
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.
