Murphy signs bill allocating $750 million for eviction prevention in New Jersey
(The Center Square) – Gov. Phil Murphy signed a $750 million measure that proponents say prevents evictions and helps New Jersey renters financially impacted by the COVID-19 pandemic pay their utility bills.
S-3691 allocates $500 million more for the COVID-19 Emergency Rental Assistance Program (CVERAP) and $250 million for utility assistance. The New Jersey Department of Community Affairs (DCA) will administer both programs.
“This bill is going to direct money to the people and programs that need it most,” Murphy said in an announcement. “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 signing comes a day after the Centers for Disease Control and Prevention (CDC) announced a nationwide 60-day extension of an eviction moratorium. Under the New Jersey measure, tenants cannot be evicted for missed payments dating to March 1, 2020, while landlords cannot report late rent to credit agencies or sell the debt.
The Garden State eviction moratorium will continue through August for residents with household incomes below 120% of the Area Medium Income (AMI). It continues through the end of the year for households with incomes below 80% AMI.
“This historic legislation is a comprehensive approach toward ending New Jersey’s eviction moratorium while providing additional rental assistance and tenant protections,” David H. Brogan, executive director of the New Jersey Apartment Association, said in the announcement. “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.”
The DCA’s Division of Housing and Community Resources has disbursed nearly $131 million in federal Emergency Rental Assistance Program (ERAP) funds to more than 15,000 households. Last year, DCA disbursed $91.75 million to 15,000 households during the CVERAP program’s first phase.
In a June fiscal estimate, the Office of Legislative Services (OLS) found the measure could lead to an indeterminate increase in DCA administrative costs. Conversely, OLS said it could lead to an indeterminate revenue increase at the local and state levels, including through court fines on landlords who do not comply with provisions of the legislation.
OLS could not estimate how much unpaid rent is eligible for compensation under the eviction assistance program.
Murphy also signed A-4463. The measure mandates that court records be kept confidential for anyone who could not pay rent during the COVID-19 health emergency.
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