Newark Municipal Employee Housing Assistance Program

What is Newark Municipal Employee Housing Assistance Program?

Newark Municipal Employee Housing Assistance Program is a forgivable loan for homebuyers in Newark, New Jersey, administered by City of Newark Department of Economic & Housing Development, Division of Housing and Finance.

• The Newark Municipal Employee Housing Assistance Program provides $20,000 no-interest forgivable loans to City of Newark employees purchasing their first home within the city. The loan is forgiven at a rate of 10% per year over 10 years if the employee-borrower maintains the home as their primary residence. The program is part of the City's broader Live Newark initiative and is distinct from the Live Newark Home Closing Cost Program (which serves the general public). All applicants are subject to HUD income limits and must be first-time homebuyers.
• $20,000 forgivable loan.
• 0% interest rate.
• 10-year forgiveness schedule.
• Available to all City of Newark employees.
• Applicable to 1-4 family homes and condos within Newark.
• Subject to HUD income limits.
• This is a federal program, so it is available beyond a single state or city.
• Funding comes from City of Newark / HOME or CDBG (HUD income limits apply).

How much assistance does it provide?

Newark Municipal Employee Housing Assistance Program offers up to $20,000 in assistance.

• The program can be combined with other assistance, subject to the rules of each.
• Amounts are the program's published maximums, not an offer — City of Newark Department of Economic & Housing Development, Division of Housing and Finance determines any individual award.

Do you have to pay it back?

Newark Municipal Employee Housing Assistance Program is forgiven after 10 years, so a buyer who stays that long does not repay it.

• Repayment is triggered by Forgiven 10% per year over 10 years; repayment triggered by sale, transfer, refinance, or failure to maintain as primary residence before full forgiveness.
• The assistance is recorded in second position.
• Forgiveness and repayment terms are set by the program and can change — confirm them on the official program page before applying.

Who qualifies?

Newark Municipal Employee Housing Assistance Program is open to first-time homebuyers and buyers who will live in the home as their primary residence.

What are the income limits?

Newark Municipal Employee Housing Assistance Program sets its income limit as follows: All qualified applicants subject to HUD income limits; specific percentage of AMI unconfirmed from available documents.

• The limit applies to total household income, not only the borrower’s.
• Area median income figures are published by HUD and updated annually, so check the current table for the county before relying on a number.

What kind of home can it be used for?

Newark Municipal Employee Housing Assistance Program caps the purchase price as follows: Home must be located within Newark; 1-4 family dwelling including townhomes/condominiums.

• Eligible property types include Single Family, Condo, Townhouse, and 2-4 Unit.
• New construction is eligible.
• Manufactured homes are not eligible.

Is there eligibility for specific groups?

Newark Municipal Employee Housing Assistance Program is limited to employees of City of Newark employees.

• Being named here means the program mentions the group, not that membership alone qualifies an applicant — the rest of the eligibility rules still apply.

Where does it apply?

Newark Municipal Employee Housing Assistance Program is a federal program, so it is not limited to New Jersey.

How do you apply?

Applications for Newark Municipal Employee Housing Assistance Program go through City of Newark Department of Economic & Housing Development, Division of Housing and Finance, which publishes the current terms and the application steps on its own site.

1. 1

   Contact City of Newark Department of Economic & Housing Development, Division of Housing and Finance to reserve funds

   Funds are reserved through First-come, first-served; subject to fund availability, and are subject to availability.

2. 2

   Work with a lender who handles the program

   Hey Prescott is not a lender and does not accept applications; this page describes the program so a buyer can take it to a lender or housing counselor.