NJ COVID Eviction Law Is Game Changer For Renters, Landlords

NEW JERSEY — As coronavirus cases continue to rise throughout New Jersey, a new law regulating evictions during the pandemic has changed the game for home renters and landlords in the state – yet again.

On Wednesday, Gov. Phil Murphy signed legislation that will gradually phase out the state’s existing eviction ban, which began at the onset of the coronavirus pandemic. It was previously slated to expire for all residents on Jan. 1, 2022.

The new law will keep that deadline for lower-income households, while shortening it for those who make more money. Learn more about who qualifies here.

• For households with incomes below 80 percent of their county's Area Median Income (AMI), the eviction moratorium will expire on Jan. 1, 2022, as previously planned.
• For those with incomes below 120 percent of the AMI in their county, the moratorium will now expire on Sept. 1, 2021.

Tenants who meet the state’s requirements can’t be evicted for any rent owed since March 1, 2020. Any outstanding rent is still due to landlords, who are allowed to take their case to court. Landlords can’t report delayed rent to credit agencies, and they aren’t allowed sell the debt to a third party.

Lt. Gov. Sheila Oliver said the bill is the result of “some of the best and brightest minds coming together to find practical and realistic solutions” to a tricky problem.

“I’m in full support of the actions laid out in this bill package to make their lives easier as we financially recover from the pandemic,” said Oliver, who also serves as commissioner of the state Department of Community Affairs.

The new law is expected to impact people across the state. In April, administrators with the New Jersey court system said they’re bracing for an explosion of coronavirus-related eviction cases, with nearly 200,000 new filings expected by the end of the year.

• See related article: NJ Courts Prepare For Onslaught Of Coronavirus Eviction Cases

The New Jersey Courts system keeps a list of state, county, and municipal programs that can help renters during the COVID-19 crisis. Many might qualify for rental assistance, even if they aren't facing eviction. (Learn more here)

Supporters of the new law pointed out that a renewed federal ban on evictions amid the pandemic may offer an extra layer of protection for struggling renters.

When the previous federal ban expired last weekend, advocates raised an outcry in the name of millions of U.S. renters and their families.

• See related article: Rep. Payne 'Disappointed' Congress Failed To Extend Eviction Ban
• See related article: Situation 'Dire' For Millions Of US Renters, Rep. Sherrill Warns
• See related article: NJ-10 Congressional Candidate Protests In D.C. For Eviction Ban

However, on Tuesday, the Centers for Disease Control and Prevention announced that the federal moratorium on evictions will be extended until Oct. 3 in areas of the nation with “heightened levels of community transmission” of COVID-19.

As of Aug. 1, that included nearly every county in New Jersey.

• See related article: Face Masks Should Be Worn In Nearly All NJ Counties, CDC Says

LANDLORDS NEED HELP, TOO

The new law’s authors acknowledged that New Jersey renters aren’t the only ones who deserve relief – landlords need help, too.

As stated in S-3691/A-5685:

“At the same time, landlords have shouldered the financial burden of housing over a million tenants, as well as the costs of maintaining the buildings, paying their mortgages, taxes, and other financial obligations with insufficient help from the state or federal government.”

Lawmakers said that while housing is a “necessity,” it’s unfair to make private sector landlords provide it without compensation.

Many of these “landlords” are actually small “mom and pop” operations who depend on monthly rent payments for income or to pay their mortgages on properties. The National Apartment Association estimates that such landlords own about 22.1 million rental properties in the United States.

• See related article: Mom-And-Pop Landlords 'Helpless,' Hurt Under Eviction Moratoriums

MONEY FOR HOUSING, UTILITY AID

Supporters said the new law puts its money where its mouth is, appropriating an additional $500 million for the COVID-19 Emergency Rental Assistance Program (CVERAP), which will help landlords get a steady stream of income from tenants who can’t afford to pay.

The popular aid effort gives eligible renters up to 12 months of rental assistance. Property managers or owners of a residential building can apply for assistance on behalf of a tenant.

The CVERAP program, which was previously aimed at those who were making less than 80 percent of AMI, will expand its scope of eligible applicants by Aug. 31 to include those making less than 120 percent of the AMI.

• See related article: More Coronavirus Aid Offered For NJ Home Renters (How To Apply)

The law also sets aside $250 million for utility assistance via the New Jersey Department of Community Affairs (DCA). The agency has a list of aid programs, including those for heating/cooling bills, which can be seen here.

The combined $750 million comes from federal funds made available to the state through the American Rescue Plan Act of 2021.

• See related article: See What Each NJ Town Is Getting From COVID Relief Law

FORECLOSURE

In addition to renters and landlords, the new law will also affect homeowners in the Garden State who face foreclosure proceedings.

The moratorium on home foreclosures will now end on Nov. 15 for all income levels. This includes landlords facing foreclosure who currently have tenants.

PREVENTING AN ‘EVICTION TSUNAMI’

Hopefully, the new law will be a fair way to balance the needs of tenants and landlords while the coronavirus crisis continues, supporters say.

“We have heard the continuing calls for help from New Jerseyans who are struggling to pay their rent and utilities. COVID-19 has put tenants and landlords in a difficult place, and I am pleased to say that more assistance is on the way,” Gov. Murphy said.

“This bill is going to direct money to the people and programs that need it most,” Murphy continued. “Housing and access to utilities are fundamental to human health and safety and we want to ensure that as many eligible applicants impacted by the pandemic get the help they need during this challenging time.”

The bill’s sponsors in the Assembly – Britnee Timberlake, Benjie Wimberly, Angela McKnight, and Shanique Speight – released a joint statement on Wednesday:

“The loss of millions of jobs and the resulting economic crisis caused by the pandemic has the potential to trigger an eviction tsunami in the coming months if we do not act now. While many tenants have faced economic hardship during the pandemic, landlords have shouldered the financial burden of housing their tenants, maintaining their buildings, paying their mortgages, taxes, and other financial obligations with limited help from the state or federal government and reduced rental income. This new law will provide significant eviction protections to struggling tenants and a steady stream of assistance income to struggling landlords as New Jersey continues to recover from the pandemic.”

Joe Johnson, a legal policy fellow with the ACLU-NJ, said it’s a fair deal for tenants and landlords alike.

“Over the last 18 months, the COVID-19 pandemic has exacerbated the longtime housing crisis in New Jersey that has disproportionately impacted Black and Brown communities,” Johnson said. “The signing of S-3691/A-5685 is significant, as it protects tenants from evictions for rental payments missed during the health emergency and moves toward addressing the housing crisis in a comprehensive way.”

Johnson added that lawmakers should commit additional resources to ensure New Jerseyans are protected against eviction once the provisions in the bill expire.

Other supporters of the new law included:

NJ Senate President Steve Sweeney – “This measure provides a lifeline to people who need it most at a time of real crisis. It will help prevent renters from losing the safety and security of their homes and allow landlords to continue to maintain their properties in a safe and secure way. It’s real eviction prevention because it backs up housing protections with finances so tenants aren’t burdened with debt and landlords aren’t forced into bankruptcy. Housing and utilities are essential needs that should be protected as we continue to work to emerge from the most challenging crisis of our lifetime … It is a wise use of federal funds to address two of the most serious threats caused by the pandemic.”

Frank Argote-Freyre, chair of the Latino Action Network Foundation – “The pandemic sapped the economic resources of many working-class families particularly among communities of color. It was a once in a century crisis that left families impoverished and unable to pay their rents. This legislation offers families an opportunity to reclaim their lives and stay in their homes.”

James Williams, director of Racial Justice Policy at the Fair Share Housing Center – “The signing of this bill marks an important day for New Jersey’s pandemic recovery. We are thankful to the Legislature and Governor Murphy for their leadership and commitment to providing relief for individuals and families throughout our state. The COVID-19 pandemic created an unprecedented situation for many New Jerseyans. Black and Latino communities were hit especially hard by the pandemic, and are also disproportionately represented among those currently facing eviction in our state. The $750 million in assistance, as well as the protections provided by this legislation, will provide critical support to individuals and families across our state. We look forward to working with the administration on the implementation of this bill as well as other housing protections.”

David Brogan, executive director of the New Jersey Apartment Association – “This historic legislation is a comprehensive approach toward ending New Jersey’s eviction moratorium while providing additional rental assistance and tenant protections. It recognizes the struggles of both landlords and tenants, and it puts the necessary tools in the hands of government to help those in need. We strongly support the legislation and look forward to working with the administration to ensure the viability of New Jersey’s housing stock.”

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