In addition, Lt. Gov. Sheila Oliver said forgiving back rent will help working families and retirees who “should not be burdened with debilitating levels of debt for trying to keep a roof over their heads.”
Murphy said that will also reduce the risks for evictions once his statewide moratorium on eviction expires — two months after whenever the governor lifts his public-heath emergency.
New Jersey, one of the state’s hit hardest by the pandemic, has seen its economy suffer greatly over the last five months. Nearly 1.5 million residents people have filed for unemployment benefits and many businesses have lost untold revenue in the wake of restrictions and business closings Murphy ordered in March.
Many thousands of people have also struggled during the crisis to pay their mortgage and rent in New Jersey, a state where about 35% of residents are renters. The number of renters who didn’t pay their rent rose from 12% in April to 25% in June, according to the New Jersey Mortgage and Housing Finance Agency, which is administering the new program.
That, officials said, has also hurt landlords who have less money coming in to pay for mortgages and upkeep of their properties.
Murphy had already froze rent for 36,000 renters — mostly low- and moderate-income families — and put a moratorium landlords evicting residents during the pandemic.
But that does not stop landlords from filing evictions notices in court, and statistics show there have been more than 15,000 filed during the crisis — a number advocates say is expected to grow in the next four months. Once the moratorium is lifted, those renters face possible eviction.
CORONAVIRUS RESOURCES: Live map tracker | Newsletter | Homepage
The new grant program is designed to help. Oliver said small residential property owners are “often the most vulnerable in an economic crisis” because they are less likely to qualify for federal housing assistance and mortgage aid programs.
“Our data shows that many of New Jersey’s small property owners are not companies or corporations,” said the lieutenant governor, who is also commissioner of the state Department of Community Affairs. “Rather, they are families and individuals. And like the families they rent to, they are struggling.”
Small landlords are “the most susceptible to not being able to pay their bills and keep their buildings up,” said Charles Richman, executive director of the Housing and Mortgage Finance Agency.
Even if only one or two units fail to pay, it could could cost some landlords a third of their income, and thus hurt all the tenants in the buildings because it’s more difficult for landlords to keep up the properties, the agency said.
Landlords can apply for a lump sum of aid from Aug. 19-26. Recipients will be chosen at random via computer.
“There’s an eight-day period in which you have an equal chance,” Richman said.
There is no cap on the amount of aid the landlords can receive from the program. But properties cannot be seasonal or vacation rentals.
Landlords will not have to pay the money back unless the state determines information on applications has been falsified, Oliver said.
In recent weeks, Murphy’s administration has been gradually doling out funding from the $2.4 billion in aid it received from the federal CARES Act approved by Congress.
That’s as the administration has faced some criticism for allocating the funds too slowly as residents and businesses continue to struggle.
NJ Advance Media staff writer Sophie Nieto-Munoz contributed to this report.
Our journalism needs your support. Please subscribe today to NJ.com.
Brent Johnson may be reached at bjohnson @ njadvancemedia com.
Note to readers: if you purchase something through one of our affiliate links we may earn a commission.
--73.215.xxx.xx