TRENTON – The Senate Budget and Appropriations Committee advanced a bill today, sponsored by Senators Troy Singleton and Benjie Wimberly, that helps ensure homebuyer counseling services remain available to purchasers following changes by the Department of Housing and Urban Development (HUD). 

“Pre-purchase counseling is a critical tool that helps first-time homebuyers understand budgeting, mortgage terms, credit obligations, and the long term-financial responsibilities associated with homeownership,” said Senator Singleton (D-Burlington). “This critical education can mean the difference between sustainable homeownership and financial distress. Ensuring these services are still available to as many New Jersey residents as possible will help buyers make more informed financial decisions.”  

“Housing and financial stability begin with responsible planning,” said Senator Wimberly (D-Passaic/Bergen). “Many prospective homeowners are the first in their family to navigate the homebuying process and may not fully understand how to manage a mortgage, property taxes, homeowners' insurance, and the myriad unexpected expenses that come with homeownership. These services help keep families informed, financially prepared, and better equipped to achieve and sustain the American Dream.” 

The bill, S-4331, would authorize the New Jersey Housing and Mortgage Finance Agency (HMFA) to provide certain reimbursements to support pre-purchase homebuyer counseling by expanding the existing Foreclosure Mediation Assistance Program (FMAP) to include early intervention pre-purchase homebuyer counseling services. The bill would authorize HMFA to also provide reimbursements to qualified counselors to support pre-purchase homebuyer counseling. 

The bill responds to recent federal changes that limit how HUD housing counseling funds can be used, including restricting support for one-on-one homeownership counseling for prospective buyers. The legislation aims to help ensure that New Jersey residents can continue to access housing counseling services that assist families in preparing for homeownership, preventing homelessness, navigating rental challenges, and maintaining long-term housing stability.

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