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New Jersey’s Affordable Housing Trust Fund could face what some advocates say is another raid on its dedicated fund in the coming fiscal year if Gov. Phil Murphy’s budget is adopted as drafted by lawmakers.
Administration officials say they do not consider the proposed use of $20 million from the fund for the NJ Housing and Mortgage Finance Agency’s (HMFA) Down Payment Assistance program as a raid. That program provides a $10,000 interest-free forgivable loan to first-time homebuyers in the state to cover a down payment and closing costs. There is an income cap to qualify, but it’s 140% of the area’s median income, which is not limited to a single county. Trust-fund money is supposed to build or support homes for those with no more than 80% of the median income.