New Jersey Assembly Bill A818

New Jersey 2022-2023 Regular Session

• Introduced: 1/11/22
• Refer: 1/11/22

Caption

Provides mortgage payment relief, income tax relief, consumer reporting protection, and eviction protection for residential property owners, tenants, and other consumers, economically impacted during time of coronavirus disease 2019 pandemic.

Impact

The legislation significantly impacts existing state laws governing mortgage and rental agreements by establishing strict guidelines for evictions and foreclosures. Notably, landlords are prevented from initiating eviction lawsuits against tenants who have missed rent payments during the emergency period. This provision aims to mitigate the risk of mass evictions and homelessness, which has been a pressing concern during the pandemic. Importantly, the bill also requires landlords to provide documentation and follow procedures before evicting tenants, fostering a more secure housing environment for vulnerable populations.

Summary

Assembly Bill A818 provides critical protections for homeowners, tenants, and landlords amidst the economic turmoil caused by the COVID-19 pandemic. It mandates that mortgage lenders grant forbearance to affected homeowners who demonstrate financial hardship related to the pandemic, shielding them from foreclosure during the declared emergency period, which is set to run until a specified conclusion date. The bill specifies eligibility criteria for forbearance requests while ensuring no penalties accrue during this period, thus offering substantial financial relief to those struggling economically due to job loss or reduced income.

Contention

While proponents of A818 argue it is essential for protecting vulnerable renters and homeowners, opponents raise concerns about the potential long-term impact on landlords and the rental housing market. Critics suggest that placing extensive restrictions on eviction processes may discourage landlords from maintaining rental properties and could lead to decreased investment in housing. Additionally, the income tax credit provisions for landlords who forgive rent may be debated, as some argue it may not sufficiently compensate landlords for their losses, leading to potential financial instability in rental markets.