TRENTON—A legislative proposal to create a New Jersey Foreclosure Relief Corp. that would permit municipalities to buy foreclosed homes and offer them as affordable housing is striking various commercial estate specialists as a creative approach worth serious consideration. "It sounds like it has the potential to help stabilize neighborhoods and also address some 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. Raymond Lesniak of Union and Barbara Buono of Middlesex. Under terms of the measure, municipalities could decide within 45 days whether to buy foreclosed homes through the state's $268-million affordable housing trust fund, and gain a two-for-one credit against their affordable housing obligations.

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