TRENTON—A legislative proposal to create aNew Jersey Foreclosure Relief Corp. that would permitmunicipalities to buy foreclosed homes and offer them as affordablehousing is striking various commercial estate specialists as acreative approach worth serious consideration. "It sounds like ithas the potential to help stabilize neighborhoods and also addresssome of the state's affordable housing goals," says Gualberto (Gil)Medina of Cushman & Wakefield's East Rutherford, NJ office.

The proposal comes from two Democrats, State Sens. RaymondLesniak of Union and Barbara Buono of Middlesex. Under terms of themeasure, municipalities could decide within 45 days whether to buyforeclosed homes through the state's $268-million affordablehousing trust fund, and gain a two-for-one credit against theiraffordable housing obligations.

The new corporation could also purchase foreclosures and offerthem for resale with 30-year deed restrictions that make themavailable as low-to-moderate income residents. The corporationwould have a finite life span of five years.