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Bill

Bill

A 3305

Requires financial institution that has foreclosed on property to remove water service lines that contain lead.

2024-2025 Regular Session Introduced by Verlina Reynolds-Jackson and 1 co-sponsor

Requires banks conducting foreclosures to remove lead water service lines from properties before sale or vacancy transfer, shifting environmental remediation costs to financial institutions.

Introduced in the Assembly, Referred to Assembly Financial Institutions and Insurance Committee
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Bill Summary · A 3305

Legislative bill overview

Bill A 3305 requires financial institutions that have foreclosed on residential properties to remove water service lines containing lead before transferring ownership or leaving the property vacant. The bill places responsibility on banks and lenders to remediate this environmental hazard as part of the foreclosure process rather than leaving it for subsequent owners or municipalities.

Why is this important

Lead in drinking water poses serious health risks, particularly to children and pregnant women, causing developmental delays, learning problems, and organ damage. By assigning removal responsibility to foreclosing institutions, the bill attempts to prevent lead exposure in communities that often experience disproportionate foreclosure rates and may lack resources to address environmental hazards independently.

Potential points of contention

  • Cost allocation: Financial institutions may argue the remediation costs are excessive and should be shared with property owners, municipalities, or state environmental programs rather than borne entirely by lenders
  • Scope and feasibility: Banks may claim identifying all properties with lead service lines is impractical or that removal timelines are unrealistic given the complexity of municipal water systems
  • Market impact: Lenders could contend that mandatory remediation requirements increase foreclosure costs, potentially reducing lending availability in certain markets or raising mortgage rates

Compiled from official sources — confirm details with the bill’s official record.

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