New Jersey Assembly Bill A1668

New Jersey 2022-2023 Regular Session

• Introduced: 1/11/22
• Refer: 1/11/22
• Refer: 5/19/22

Caption

Establishes "Security Deposit Assistance Pilot Program" in Passaic, Union, Essex, Hudson, Gloucester, Atlantic, Camden, and Mercer counties; appropriates $400,000.

Impact

The bill mandates that approved households will be able to provide a letter of commitment to landlords, allowing them to move into a residence without paying the full security deposit upfront. Instead, they will pay one-twelfth of the security deposit as an additional monthly payment for the first year. In cases where households violate lease agreements before paying their security deposit, the program allows for reimbursement to landlords, protecting them from loss. However, this assistance is capped based on the amount unpaid or damages incurred, ensuring a balanced approach between protecting tenants and landlords.

Summary

Assembly Bill A1668 establishes the 'Security Deposit Assistance Pilot Program' aimed at aiding low-income households in New Jersey with the financial burden of security deposits when entering into rental leases. The program will be operational in several counties, specifically Passaic, Union, Essex, Hudson, Gloucester, Atlantic, Camden, and Mercer, for a minimum of three years. The bill allocates $400,000 from the General Fund to support this initiative, which aims to improve access to housing for very low-income families and individuals.

Contention

One significant point of contention arises from the implications of the bill regarding landlord-tenant relationships. Specifically, the bill includes provisions that prohibit landlords from rejecting applicants based on their participation in the pilot program under the state's anti-discrimination laws. This raises concerns among some landlords regarding their ability to make independent rental decisions. Moreover, there may be debates on the sufficient funding and resources allocated to effectively administer the program and prevent potential issues of misuse or mismanagement.