Cal. Civ. Code § 5:11-3.6
Downpayment assistance
Operative Text
(a) displaced tenant who is eligible to receive a rental assistance payment or a displaced owner-occupant of fewer than 180 days may elect to purchase a comparable replacement dwelling and, if he does so purchase, he shall receive an amount not to exceed $ 4,000 or the amount necessary in order to make a downpayment on the purchase of a comparable standard dwelling adequate to accommodate such person and his family, whichever is less, subject to the following: 1. The full amount of the payment must be applied to the purchase price, including incidental payments, and must be listed on the settlement statement; and 2. Any rental assistance previously paid to the displaced individual shall be deducted from the downpayment assistance. 3. In the event the total of the minimum downpayment needed and incidental closing costs exceeds $ 2,000, the displacee must match dollar for dollar the amount in excess of $ 2,000, to a maximum payment of $ 4,000. 4. If the displacee chooses to purchase a building containing more than one dwelling unit or commercial space, downpayment assistance shall be limited to that portion of the minimum downpayment required that is attributable on a pro rata basis to the dwelling unit to be occupied by the owner.
Under N.J.A.C. § 5:11-3.6, certain displaced tenants and short-term displaced owner-occupants who choose to buy a replacement home instead of renting may receive financial assistance toward their down payment. The assistance is capped at $4,000 or the amount actually needed for a comparable standard dwelling, whichever is less, and any rental assistance already received is subtracted from that figure. When costs exceed $2,000, the displaced person must match dollar-for-dollar the portion above that threshold, and in mixed-use or multi-unit purchases, the assistance is prorated to cover only the owner-occupied portion.
Plain English — not legal advice.
Property owners and managers involved in displacement situations governed by N.J.A.C. § 5:11-3.6 should be aware that eligible displaced individuals have the right to convert their rental assistance eligibility into down payment assistance when purchasing a replacement home. Compliant administrators typically ensure that the full assistance amount is properly reflected on the settlement statement, that any previously paid rental assistance is deducted, and that matching requirements are clearly communicated when costs exceed $2,000. Keeping accurate records of all prior rental assistance payments is a standard practice to ensure correct calculation of any down payment benefit.
General guidance for property managers — not legal advice for your specific situation. Consult an attorney for advice on your case.
Under N.J.A.C. § 5:11-3.6, if you are a displaced tenant eligible for rental assistance, you may have the option to apply that benefit toward purchasing a comparable replacement home instead, up to a maximum of $4,000. It is worth noting that any rental assistance you have already received will be counted against the down payment amount, and if your down payment and closing costs exceed $2,000, you would be required to contribute matching funds for the excess. Tenants who believe they qualify for this benefit or have questions about how it is calculated can reach out to the New Jersey agency administering their displacement assistance or consult a tenant-rights organization familiar with state relocation law.
General guidance for tenants — not legal advice for your specific situation. Consult a tenant-rights organization or attorney for advice on your case.
Generated November 3, 2026 — auto-generated, not yet human-reviewed. See /transparency for methodology.
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