By State House Bureau Chief Briana Vannozzi Follow @BriVannozziNJTV

Thousands of foreclosed homes around the state would be turned into affordable housing under a new bill introduced by Senator Raymond Lesniak (D- Union) today at the State House.

“Vacant and boarded up homes are a blight on neighborhoods, an invitation to vandalism and crime and a drag on property values and our economic recovery,” he said. “Families evicted from these homes still need affordable places to live.”

Under the measure, a central agency would be established under the New Jersey Housing and Mortgage Finance Agency (HMFA) to use funds from the State Affordable Housing Trust Fund. That money would go toward the purchase of deed-restricts and foreclosed properties, and in turn transitioned into affordable housing.

Lesniak says the funds will come from multiple sources. Nearly $200 million will come from federal foreclosure funds, up to $268 million from participating municipalities’ affordable housing funds and, if needed, funds from the HMFA bonding authority.

The bill proposes incentives for municipalities to join in, giving them a 2-to-1 match against their affordable housing obligation for the units created from foreclosed properties.

Lesniak says the bill will be a driver for the economy and help tens of thousands of homes across the state.

The bill will be considered Thursday before the Senate Economic Growth Committee.