NJ A4524

Institutional investors are prohibited from contacting sellers, placing bids, or purchasing single-family homes (1-4 units, including townhouses and condos) during the first 45 days a property is on the market in New Jersey.

Institutional investors that acquire single-family homes are barred from leasing those properties for five years following purchase and must pay annual state taxes ranging from $2,000 per unit (first 25 homes) to $25,000 per unit (251+ homes).

Small institutional investors (owning 20 or fewer single-family homes), nonprofit affordable housing organizations, family trusts, family LLCs, and government entities are exempt from the restrictions and tax requirements.

Violations carry civil penalties of $20,000 ($60,000 for willful violations), and institutional investors found in violation must sell the property within six months with profits payable to the Attorney General.

Tax revenue collected under this act will be credited to the New Jersey Housing and Mortgage Finance Agency for down payment assistance programs, with priority given to families purchasing homes sold by institutional investors.