State Codes and Statutes

Statutes > New-jersey > Title-20 > Section-20-4 > 20-4-5

20:4-5.  Replacement housing for homeowners
    a.  In addition to payments otherwise authorized by this act, the taking agency shall make an additional payment not in excess of $15,000.00 to any displaced person who is displaced from a dwelling actually owned and occupied by such displaced person for not less than 180 days prior to the initiation of negotiations for the acquisition of the property.  Such additional payment shall include the following elements:

    (1) The amount, if any, which when added to the acquisition cost of the dwelling acquired, equals the reasonable cost of a comparable replacement dwelling which is a decent, safe, and sanitary dwelling adequate to accommodate  such displaced person, reasonably accessible to public services and places of  employment and available on the private market.  All determinations required to  carry out this subparagraph shall be determined by regulations issued pursuant  to section 10 of this act.

    (2) The amount, if any, which will compensate such displaced person for any  increased interest costs which such person is required to pay for financing the  acquisition of any such comparable replacement dwelling. Such amount shall be  paid only if the dwelling acquired was encumbered by a bona fide mortgage which  was a valid lien on such dwelling for not less than 180 days prior to the  initiation of negotiations for the acquisition of such dwelling.  Such amount  shall be equal to the excess in the aggregate interest and other debt service  costs of that amount of the principal of the mortgage on the replacement  dwelling which is equal to the unpaid balance of the mortgage on the acquired  dwelling, over the remainder term of the mortgage on the acquired dwelling,  reduced to discounted present value.  The discount rate shall be determined by  regulations issued pursuant to section 10 of this act.

    (3) Reasonable expenses incurred by such displaced person for evidence of title, recording fees, and other closing costs incident to the purchase of the replacement dwelling, but not including prepaid expenses.

    (4) Penalty costs for prepayment of any mortgage entered into in good faith  encumbering such real property if such mortgage is on record or has been filed  for record as provided by law on the date of approval by taking agency of the  location of such project.

    (5) The pro rata portion of real property taxes payable during the calendar  year in which the property was acquired which are allocable to the period of  the year subsequent to the date of vesting of title in the taking agency, or  the effective date of the possession of such real property by the taking  agency, whichever is earlier.

    b.  The additional payment authorized by this section shall be made only to  such a displaced person who purchases and occupies a replacement dwelling which  is decent, safe, and sanitary not later than the end of the one year period  beginning on the date on which he receives final payment of all costs of the  acquired dwelling, or on the date on which he moves from the acquired dwelling,  whichever is the later date.

     L.1971, c. 362, s. 5, eff. Jan. 1, 1972.