N.J. Stat. Ann. § 55:17-1 et seq. § 55:17-6
Modifying or supplementing mortgage loan; written consent of holder
Operative Text
So long as any mortgage loan remains unsatisfied in respect to any project, no agreement shall be made between the governmental body or agency on any lease or financial agreement and the other party thereto, either to modify or supplement any provision thereof, or to exercise any option or right thereunder, including any option to surrender a tax arrangement, without the prior written consent of the holder of the mortgage loan. L.1967, c. 304, s. 6, eff. Feb. 15, 1968.
Under N.J.S.A. 55:17-1 et seq. § 55:17-6, as long as a mortgage loan on a housing project remains outstanding, neither the governmental body or agency nor the other contracting party may alter, supplement, or exercise any option under a lease or financial agreement—including surrendering a tax arrangement—without first obtaining written consent from the mortgage loan holder. This rule preserves the mortgage holder's position by ensuring that changes to underlying agreements cannot be made unilaterally while the loan is active. The provision applies to the full life of the mortgage, from origination through final satisfaction.
Plain English — not legal advice.
Property owners and managers involved in government-assisted housing projects should be aware that N.J.S.A. 55:17-1 et seq. § 55:17-6 requires written consent from the mortgage loan holder before any modification, supplement, or option exercise under a lease or financial agreement can take effect. Compliant operators generally document all communications with the mortgage holder and secure written approval before initiating any changes to covered agreements. Maintaining organized records of consent correspondence helps demonstrate compliance if questions arise during audits or project reviews.
General guidance for property managers — not legal advice for your specific situation. Consult an attorney for advice on your case.
N.J.S.A. 55:17-1 et seq. § 55:17-6 governs how governmental bodies and project parties may alter the financial and lease agreements underlying certain housing projects, which can affect the stability and terms of housing in those developments. Tenants living in government-assisted projects may find it useful to understand that changes to their project's governing agreements are subject to mortgage holder approval, which can limit sudden or unauthorized modifications. Tenants who believe changes have been made to their housing arrangement without proper authorization may consider reaching out to a local tenant-rights organization or housing authority for general information about their situation.
General guidance for tenants — not legal advice for your specific situation. Consult a tenant-rights organization or attorney for advice on your case.
Generated October 6, 2026 — auto-generated, not yet human-reviewed. See /transparency for methodology.
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