New Jersey 2024-2025 Regular Session

New Jersey Assembly Bill A2838

Introduced

1/9/24

Refer

1/9/24

Caption

Establishes guidelines for creditworthiness determinations concerning affordable housing programs.

Impact

This legislation is built on the recognition that current credit assessment practices often unfairly disadvantage low-income renters. The bill emphasizes the necessity of conducting individualized assessments rather than relying solely on credit scores, which may not accurately reflect an applicant's ability to pay rent based on individual circumstances. The legislation is expected to promote fairness in the rental market by providing greater access to housing for those who need it most, while also acknowledging that many families can fulfill their rental obligations despite having less-than-perfect credit histories.

Summary

Assembly Bill A2838 seeks to address the challenges faced by low and moderate-income households in New Jersey regarding access to affordable housing. The bill specifically establishes guidelines for creditworthiness determinations and prevents landlords from using credit scores and other related assessments when evaluating applicants who receive state or federal housing subsidies. It aims to mitigate the negative impacts of poor credit scores on families struggling to afford housing, particularly those who may have faced financial hardships that affected their credit due to circumstances beyond their control.

Contention

One of the central points of contention surrounding A2838 is the balance between protecting landlords' rights to have reliable tenants and the need to ensure that marginalized families are not discriminated against in the housing process. Critics may argue that the bill could limit landlords' ability to assess the financial reliability of potential renters, potentially leading to increased risk for property owners. Supporters, however, argue that without such protections, systemic discrimination continues to trap people of color and lower-income families in cycles of poverty due to unfair eviction and rental practices stemming from flawed credit assessments. The legislation aims to address these concerns while also ensuring accountability through requirements for landlords to provide explanations for adverse actions against applicants.