NJ S3097

Institutional investors are prohibited from contacting owners, placing bids, or purchasing single-family homes during the first 45 days a property is on the market and available for purchase in New Jersey.

Institutional investors who purchase single-family homes are barred from leasing those properties for five years following acquisition.

Annual state taxes are imposed on institutional investors based on portfolio size: $2,000 per unit for the first 25 homes, $10,000 per unit for homes 26-250, and $25,000 per unit for 251+ homes.

Tax revenue collected from institutional investors will be credited to the New Jersey Housing and Mortgage Finance Agency to fund down payment assistance programs for families purchasing single-family homes.

Violations carry civil penalties of $20,000 (or $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.