Category: Government

TRENTON, N.J. —  The New Jersey Housing and Mortgage Finance Agency (NJHMFA) approved the Residential Foreclosure Intervention Program (FIP) at its Oct. 19 board meeting.

The FIP will enable qualified non-profits to rehabilitate vacant or abandoned residential properties and sell them to low-, moderate-, or middle-income households.

“Vacant and abandoned homes are often purchased by institutional investors to rent back to the community or left to depreciate, adversely impacting neighboring properties,” said Executive Director Melanie R. Walter.

“This program is a testament to the state’s commitment to finding innovative solutions to difficult problems. Instead of allowing those to be the only two potential outcomes, we are going to rehabilitate these properties and get them back into the hands of residents as ownership opportunities.”

In conjunction with the Emergency Rescue Mortgage Assistance Program (ERMA), which has already delivered more than $110 million in relief to prevent foreclosures, the FIP is part of NJHMFA’s efforts to offer communities a wide range of solutions to combat foreclosure contagion and increase the stock of available homes for purchase by low-to-moderate income families.

The FIP is financed by fees collected during sheriff sales and supplemented with $25 million from the state’s allocation of the Coronavirus State and Local Fiscal Recovery Fund. From these funds, nonprofit community development organizations are eligible for up to $400,000 per property in grants to use for the acquisition and rehabilitation of single-family homes, townhomes, or condominiums.

After these properties are rehabilitated by nonprofit community development organizations, they will be sold to low-, moderate-, or middle-income households. To help these eligible families complete home purchases, NJHMFA offers up to $22,000 in down payment and closing cost assistance through its successful Down Payment Assistance (DPA) Program.

NJHMFA’s share of the proceeds will be deposited back into the Foreclosure Intervention Fund to ensure that the program grows with its successes. Grantee applications will be accepted on a rolling basis, with the program’s initial round of financing expected to benefit 60 properties.

Interested non-profits seeking to rehabilitate properties through the FIP are encouraged to visit https://www.nj.gov/dca/hmfa/consumers/nonprofits/ or reach out to FIP@njhmfa.gov for more information.

About Us: The New Jersey Housing and Mortgage Finance Agency (NJHMFA) advances the quality of life for residents of and communities throughout New Jersey by investing in, financing, and facilitating access to affordable rental housing and homeownership opportunities for low and moderate-income families, older adults, and individuals with specialized housing needs. To learn more about NJHMFA, visit: https://NJHousing.gov/

Mercer County is encouraging small-business owners to attend an educational forum about the new Mercer County Small Business Investment Program on Monday, Nov. 13.

The program is helping small businesses raise funding directly through retail investors locally and nationwide on the SMBX marketplace.

The free event, supported by the Small Business Development Center (SBDC), will take place on Monday, at 9 a.m. at the College of New Jersey, Business Building Student Lounge, 200 Pennington Road in Ewing. A light breakfast will be served.

Mercer County awarded a $500,000 grant to SMBX to manage the program and drive retail investment to at least 30 Mercer County small businesses on the SMBX marketplace. The grant offset some of the lending fees for small businesses as they raise funds to grow their businesses.

Small-business owners can apply to raise funds through the Mercer County Office of Economic Development, SMBX, and the African American Chamber of Commerce of New Jersey.

Here’s how the program works:

• Businesses can raise money by issuing Small Business Bonds on the SMBX marketplace.
• Instead of borrowing from a bank, businesses borrow from investors in their community and across the country, paying them back monthly at fixed interest rates through SMBX.
• Small businesses are not required to provide a personal loan guarantee.
• SMBX completes the underwriting at no cost, the business reviews it, and SMBX files it with federal regulators.
• The SMBX marketing team works with the business owners to offer and promote their raise.
• Once the raise is completed, the business makes monthly fixed payments to its investors so it knows exactly what to expect for its cash flow.
• By purchasing Small Business Bonds in $10 increments through the Mercer County Small Business Investment Program, investors can earn a meaningful monthly return by lending money to their favorite local small businesses while gaining more control over their money.

Small business qualifications:

• Physical business located in Mercer County;
• For-profit business registered with the State of New Jersey, and formed on or before April 10, 2023;
• 30 or fewer employees, with part-time equating to ½ full-time employee;
• Less than $10 million in gross revenue;
• Preference is given to those businesses that have not received specific business grant assistance from the federal, state, or local government entity; and,
• National franchises, real estate businesses, and independent consultants are ineligible.

The Mercer County Small Business Investment Program will run through September 2024.