The N.J. Residential Transformation Act

 We told you this was coming.  It was almost a foregone conclusion, as the cliché goes.  First, banks are forced to make loans to people who can’t afford to pay them, through the Community Reinvestment Act.  Then, local municipalities make sweet deals with developers to build houses working class people can’t possibly afford the payments or taxes on, but are lured by ridiculously low interest rates, or worse, Adjustable Rate Mortgages.

The homeowners take the bait, fail to meet their mortgages, and now the government takes their houses.  The New Jersey Residential Foreclosure Transformation Act will allow a property owner’s tax dollars to subsidize the next owner of that home — as low-income subsidized housing- after the property owner has been evicted via foreclosure. Notice that Obama word – “Transformation.”  This could effectively devalue every neighborhood in New Jersey. The New Jersey Builders Association, New Jersey Realtors Association, and the New Jersey Mortgage Brokers Association all have a vested interest: the builders with construction, and the realtors and mortgage brokers with full commissions (subsidized by tax dollars) on every low income subsidized transaction that occurs.

In effect, this legislation would be one of the largest expansions of State Government in our history, bringing government into every neighborhood in New Jersey while making them our largest landlord and property owner.  There are over 600 homes in foreclosure in Bergen County alone. New Jersey taxpayer and Tea Party leader, Bill Eames asked, “Are you comfortable thinking that the N.J. Foreclosure Relief Corporation may purchase the house next door, across the street or up the block?  What happens to our local tax base?” Consider the abuses and negative repercussions: the market increases yet a community is stuck with low-income housing; the State cannot take care of the property; corruption.

In a commenter stated this law violates the NJ Constitution: Art VIII, section 3, para 2-3.

2.  No county, city, borough, town, township or village shall hereafter give any money or property, or loan its money or credit, to or in aid of any individual, association or corporation, or become security for, or be directly or indirectly the owner of, any stock or bonds of any association or corporation.

3. No donation of land or appropriation of money shall be made by the State or any county or municipal corporation to or for the use of any society, association or corporation whatever.

Immediate Actions:

With an “indeterminate fiscal impact on State and local government,”* (see explanation from the Office of Legislative Services), the following actions are recommended by the Morristown Tea Party and other state Tea Parties:

(A) plan to attend a probable May hearing when the Assembly Appropriations Committee meets in Trenton. Then, like Rob Eichmann, GOP State Committeeman from Gloucester County, who opposed this Bill in past testimony and provided much of the aforementioned info, you can do that, too;

(B) share with your local Mayor and Council via e-mail and at their next, televised public meeting, advising them to consult with their borough attorney and the League of Municipalities, as well as your County Freeholders and State legislators to see what actions they will undertake to stop this dangerous, over-reaching legislation. The legislation was proposed by Democrats and passed the Assembly Housing and Local Government Committee and the Senate Economic Growth Committee with Democratic votes;

C) Circulate this information with New Jersey family, friends, local media and Letters to the Editor;

D) Last, certainly Governor Christie should veto this legislation with your encouragement. His number: 609.292.6000.

The bill’s legislative titles are:

Assembly Bill A.2168/Senate Bill S.1566

The bill has already passed two state committees.  Make sure the bill stops here.


Published in: on April 18, 2012 at 10:38 am  Comments (117)  

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