3. a. There is established in the Department of Community Affairs a Resilient Home Construction Pilot Program for the purpose of providing funding for developers to rehabilitate existing homes and construct new affordable homes for sale.

b. As part of the pilot program, the department shall develop an application process and promulgate criteria that enables a developer to qualify for funding for the rehabilitation or construction of homes for sale. Among such other criteria as the department deems necessary, the department shall require that:

(1) the homes rehabilitated or constructed for sale are not located in the 500-year floodplain or the inland or coastal climate adjusted floodplain, as defined by Department of Environmental Protection;

(2) the homes rehabilitated or constructed are to be sold to households with a gross household income not to exceed 120 percent of the median gross household income for households of the same size within the housing region in which the housing is located;

(3) the prospective homebuyer is a renter that has been impacted by a storm or natural disaster that has prompted the governor to declare a state of emergency; or a first-time homebuyer, including a first-time homebuyer receiving financial assistance from the agency;

(4) the developer include a purchase discount on the home sale price, as established in accordance with criteria developed by the department; and

(5) the homes for sale contain a minimum period of affordability as determined by the department.

c. Funding to successful pilot program applicants shall be provided in a manner determined by the department and pursuant to an agreement between the department and a successful pilot program applicant, and shall be conditioned upon compliance with the provisions of such an agreement as determined by the department.

d. As part of the pilot program, the department shall permit local government entities to apply for funding to provide to developers to rehabilitate existing homes and construct new, affordable homes for sale, so long as: (1) the application process and criteria imposed by the local government entity on developers is the same as the criteria developed pursuant to subsection b. of this section; (2) the local government entity and the developer enter into an agreement subject to the same requirements as an agreement pursuant to subsection c. of this section; and that funding to the local government entity is conditioned upon compliance with the provisions of an agreement as determined by the department.

e. In addition to the funding provided to developers pursuant to the pilot program, the department may establish incentives to encourage homebuyers to remain in the homes developed pursuant to this pilot program, including through the provision of down payment assistance as a zero-interest forgivable loan for homebuyers who are not eligible or do not qualify for down payment assistance through other State programs including the program established pursuant to section 2 of P.L.2023, c.78 (C. 55:14K-105).

f. For the purpose of determining the amount of purchase discount, provided pursuant to paragraph (4) of subsection b. of this section, the department shall establish a sale price, pursuant to an appraisal conducted by a professional appraiser hired by the department.

L.2023, c.78, s.3.