Newarkers Urgently Need COVID Rent, Mortgage Aid: Councilwoman
NEWARK, NJ — The residents of Newark have been ravaged by the coronavirus. And the last thing New Jersey’s largest city needs is a huge wave of residents forced out on the streets in a pandemic, a city councilwoman says.
On Thursday, a bill that would give some much-needed relief to New Jersey residents facing evictions and foreclosures due to COVID-19 advanced in the state Legislature.
If passed into law, A-4034/A-4226 would force landlords and mortgage holders to offer repayment plans to residents who are having financial troubles because of the outbreak. Its sponsors include Assemblywoman Shanique Speight of the 29th District, who represents Newark and Belleville (see more details about the bill below).
Earlier this week, Newark council member LaMonica McIver gave a resounding endorsement for the proposed law, saying it would provide the city with “economic relief so desperately needed as we continue to battle the COVID-19 pandemic.”
“Like the rest of the world, [Newark residents] are in need of assistance with rent and mortgage payments, which is the reason I fully support the bill,” McIver said.
“People in New Jersey are struggling to make ends meet during this rough time with unemployment numbers sky high and the delay to receive unemployment payments,” McIver said. “What we do not need is for thousands of Newarkers to face eviction and foreclosure and end up battling homelessness. We cannot allow residents to be removed from their homes.”
“We cannot stand back and do nothing,” McIver urged. “We cannot afford to be silent.”
In Newark, advocates say evictions have been taking place despite a statewide moratorium issued in March, and the city’s own ongoing efforts to protect renters.
“A lot of tenants don't know that their landlords have to go to court for evictions, so they're vulnerable to pressure from the landlords,” Maria Lopez-Nuñez of the Ironbound Community Corporation told Patch in June.
“Also, there are too many landlords who don't understand that they are not allowed to evict any tenant themselves,” Lopez-Nuñez added.” Those are illegal self-help evictions that are rampant.”
According to the nonprofit, about 78 percent of the people living in Newark are renting their homes.
See related article: Evictions Continue In Newark Despite COVID Freeze, Advocates Say
LAWMAKERS: ‘WE HAVE A RESPONSIBILITY’
The sponsors of A-4034/A-4226 include Assembly members Shanique Speight, Britnee Timberlake, Angela McKnight and Benjie Wimberly.
The current version combines their original housing bill, A-3948, which was introduced in April, and adds language from S-2340 in the state Senate.
See related article: 4 NJ Lawmakers Have Plan To Stop COVID Foreclosures, Evictions
After previously passing the Senate by a unanimous vote, the legislation passed the full Assembly by a vote of 46-22-3 on Thursday. It now heads to the desk of Gov. Phil Murphy.
Speight, Timberlake, McKnight and Wimberly issued a joint statement about the bill on Monday:
“Residents throughout our state continue to experience severe financial hardship as a result of COVID-19 and the steps New Jersey had to take to slow the spread of this deadly virus. We must understand these exceptional circumstances and ensure no New Jerseyan loses their home because of a situation that was entirely out of their control. People must stop looking at this housing crisis as landlords vs. tenants, as both are important to the housing ecosystem. If homeowners do not succeed, renters will be displaced; if renters do not succeed, homeowners will foreclose. It's critically important for both to receive an equal opportunity to keep a roof over their heads.”
The lawmakers continued:
“Thank you to the many organizations who have participated in the drafting of this legislation to make sure it is fair and responsible for the people of New Jersey. The input from so many groups is what truly makes this 'The People's Bill.' This legislation will add on to the work the Governor's Office and Legislature has already done to protect residents by making sure mass evictions and foreclosures do not take place once the current public health crisis ends. We have a responsibility to all those in our state to make sure they are cared for not only during an emergency, but in the wake of its devastation as well.”
The four lawmakers offered the following details about the bill:
Mortgage servicers would be required to grant a mortgage forbearance to homeowners or qualifying residential landlords with limited savings and a gross household income that does not exceed 150 percent of the Area Median Income (AMI) who submit a written request affirming they have been financially impacted in a negative way as a result of the pandemic.
Renters in a similar financial situation with an income that does not exceed 100 percent of the AMI would also be given relief under the bill, with the legislation prohibiting landlords from evicting renters for 60 days after the conclusion of the Public Health Emergency.
During both the emergency and the following grace period, qualifying renters would not be subject to eviction notices, penalties or fees. For both renters and owners, there would be no impact to credit.
Reasons for financial hardship of both renters and owners include a reduction in hours or loss of employment due to the closure of non-essential businesses, funeral costs associated with COVID-19 and increased child care costs due to school closures - among others.
To prevent catch-up payments from being required immediately in a lump sum and to prevent mass evictions and foreclosures, the bill stipulates mortgage payments would be added on to the end of the mortgage, while landlords would have to enter into an affordable rental repayment agreement with their renters.
The bill also requires landlords to distribute a statement of tenant and landlord rights/responsibilities, as published by the Department of Community Affairs, to each impacted tenant. Landlords would also have to calculate all missed payments during the emergency period and provide written notice to the tenant of that amount within 10 days of the emergency period's conclusion, using the department's template for the form.
The legislation expands on Gov. Phil Murphy’s existing executive orders by suspending the initiation of foreclosure and eviction proceedings for impacted homeowners and tenants during the emergency while mandating uniform repayment plans for residents receiving mortgage and rental relief.
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This article originally appeared on the Newark Patch
