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AN ORDINANCE AMENDING TITLE II, ADMINISTRATION, CHAPTER 10, DEPARTMENT OF ECONOMIC AND HOUSING DEVELOPMENT, SECTION 7.2, CLOSING COSTS PROGRAM, OF THE REVISED GENERAL ORDINANCES OF THE CITY OF NEWARK, NEW JERSEY, 2000, AS AMENDED AND SUPPLEMENTED, BY AMENDING SECTION 7.2(A)(7), TO INCREASE THE TERM OF THE LOAN AND ACCORDINGLY DECREASE THE PERCENTAGE OF THE FOREGIVENESS AMOUNT FOR EACH FULL CONSECUTIVE YEAR AFTER CLOSING IN WHICH THE SUBJECT PROPERTY IS THE PRIMARY RESIDENCE OF THE BORROWER UNTIL THE CLOSING COSTS LOAN IS FULLY SATISFIED.
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WHEREAS, pursuant to Ordinance 6PSF-e, adopted on September 20, 2023, the Municipal Council, on behalf of the City of Newark, increased the Closing Costs Program amount from Ten Thousand Dollars and Zero Cents ($10,000.00) to Twenty Thousand Dollars and Zero Cents ($20,000.00) to benefit Newark residents; and
WHEREAS, the City of Newark has determined that there is a need to accordingly adjust the term of the loan and the percentage of forgiveness of the loan amount for each full consecutive year after closing in which the subject property is the primary residence of the borrower; and
WHEREAS, the Municipal Council finds and declares the following amendments to the Revised General Ordinances of the City of Newark, New Jersey, 2000, are deemed necessary.
NOW, THEREFORE, BE IT ORDAINED BY THE MUNICIPAL COUNCIL OF THE CITY OF NEWARK, NEW JERSEY, THAT:
Note: Additions are shown as underlined and bold. Deletions are strikethroughs.
SECTION 1.
? 2:10-7.2 CLOSING COSTS PROGRAM.
a. Closing Costs Program.
7. Forgiveness or Repayment of the Closing Costs Loan. Closing Costs Loans shall be made in the form of five (5) ten (10) year interest-free, forgivable loans, up to the amount of $20,000. For each full, consecutive year following the closing that the borrower makes the subject property his or her primary residence, 20% 10% of the amount of the total Closing Costs Loan shal...
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