In an effort to curb the high volume of evictions and foreclosures caused by the COVID-19 pandemic, the NJ legislature has introduced Senate Bill 2340 to offer renters flexibility so they are not forced to pay four or more months of rent all at once when the moratorium is lifted. The bill also allows homeowners who are temporarily unable to make their mortgage payments the necessary forbearance period to pay off what they owe at the end of their mortgage’s life, rather than during the crisis. The bill has already cleared the state Senate and the key Assembly Housing Committee and is just waiting for a final vote in the General Assembly before Gov. Murphy can sign it into law.
Proponents of this bill are touting it not only as an economic issue but also an important civil rights issue that is essential for the housing security of Black New Jerseyans and immigrant families – many of whom don’t qualify for federal assistance. Medical data indicates that Black people are more likely to contract and be hospitalized for COVID-19 and also more likely to have lost their jobs in the service and retail sectors, which provided the income needed to maintain their housing security. Undocumented immigrants are often employed in similar service, retail and restaurant industries which have experienced devastating layoffs during the pandemic shutdown so therefore, this bill is also intended to protect their housing.
We will continue to monitor the status of this legislation and its impact to our industry.
For additional information, please reach out to the below contact:
Senior Litigation Attorney – Salvatore Carollo, Esquire