Here are 2 links that breaks down the legislation a little more plainly. https://www.nj.gov/dca/divisio...https://www.nj.gov/dca/divisio....To address some of your questions @Mark F. - I will only answer what we definitively know within our organization, I cannot speak on behalf of the state or nonprofit behind this new legislation. 

So that 385K should drop down to the 370's all said and done.

You could bring less down and possibly have a lower interest rate since you will be living there.

Scroll down to page 6, Schedule L, Balance Sheet per Books.https://www.irs.gov/pub/irs-pdf/f1065.pdfLook at Lines 7a and 19a.

@Ashish Acharya: You hit the nail on its head !!

I'm more just tossing the idea around in my head should things get worse in years to come.

The Long term, after some reserves, I'd like to bring down the assessment costs since I worry that this will negatively impact the property value. 

So long story short I am still hunting down the contract. 

I'd also think about long term-do you want to share your property with tenants and how will it affect resale value down the road? 

Almost all mortgage loans these days have Due on Sale clauses, so it comes down to A) whether they find out (usually from changes in the insurance policy), and B) whether they choose to call the loan.