Establishes the "New Jersey Residential Foreclosure Transformation Act."

The New Jersey Residential Foreclosure Transformation Act creates a program to convert foreclosed residential properties into affordable housing for low- and moderate-income households. The New Jersey Housing and Mortgage Finance Agency will purchase eligible properties (including those owned by institutional lenders or municipalities due to tax foreclosure) and dedicate them for affordable housing with 30-year deed restrictions. Municipalities with at least 10 foreclosed homes listed for 60+ days can commit funds from their affordable housing trust funds to the program and receive bonus credits toward their affordable housing obligations. The program will be funded in part by an additional $350 fee per foreclosure sale collected by sheriffs, with funds deposited into a dedicated "Foreclosure to Affordable Housing Transformation Fund."