New Jersey Assembly Bill A816

New Jersey 2022-2023 Regular Session

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

Caption

Concerns mortgage and loan forbearance, rent suspension, and consumer reporting during coronavirus disease 2019 pandemic.

Impact

A816 mandates that landlords suspend rent for tenants, including residential and small business commercial tenants, for an initial 90 days, extendable upon request. Following the conclusion of the state of emergency declared by the Governor, rent will not need to be repaid in a lump sum and can instead be subject to a payment plan if agreed upon. Additionally, tenants will not incur late fees or penalties during this period, ensuring that vulnerable populations are protected from undue financial burdens during recovery phases following the pandemic.

Summary

Assembly Bill A816 addresses critical issues concerning mortgage and loan forbearance, rent suspension, and consumer reporting during the COVID-19 pandemic. The bill establishes a framework for property owners to request mortgage forbearance for a total of up to 180 days, without needing to prove economic hardship. This measure directly assists both residential and commercial property owners who have been financially impacted by ongoing public health crises, allowing them to manage their mortgage obligations without the threat of foreclosure during the specified time frame.

Contention

The bill outlines stipulations concerning consumer reporting; specifically, it prohibits any adverse information related to the pandemic from being reported during the forbearance period. This provision aims to mitigate the long-term impact of the pandemic on individuals' credit scores and financial futures, reflecting a progressive approach to consumer protection during economic hardship. Stakeholders may debate on the balance of financial institutions' interests versus tenants' protections, especially regarding the limits imposed on landlords and lenders, and the broader ramifications on housing market stability.