4 NJ Lawmakers Have Plan To Stop COVID Foreclosures, Evictions – Montclair, NJ Patch

ESSEX COUNTY, NJ — A proposed state law would throw a lifeline to New Jersey homeowners and renters going underwater because of the coronavirus, its supporters say.

The bill, A-4034/A-4226, would require mortgage companies and landlords to let people make up any missed payments during the COVID-19 crisis, heading off a possible eviction or foreclosure. Under the proposed legislation, renters or homeowners wouldn’t take a hit to their credit scores if they make late payments due to the outbreak.

The bill is sponsored by Assembly members Britnee Timberlake, Benjie Wimberly, Angela McKnight and Shanique Speight, all Democrats. It combines principles from their original housing bill, A-3948, while adding language from its companion in the Senate, S-2340.

Timberlake represents the state’s 34th District, which includes Montclair, East Orange, Orange and Clifton. Speight represents the 29th District, which includes Belleville and Newark.

The Assembly Housing Committee advanced the bill Tuesday. It now heads to the floor of both legislative chambers.

According to a joint statement from its sponsors, additional details include:

  • Creditors would be required to grant a mortgage forbearance to homeowners with limited savings and a gross household income under $150,000 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 would also be given relief, with the legislation prohibiting landlords from evicting renters for 60 days after the conclusion of the State of Emergency period, except in the case of non-payment related reasons.
  • During both the emergency and the following grace period, 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 a reduction in income as a result of caring for sick family members, 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 would also expand on Gov. Phil Murphy’s existing executive orders by suspending the initiation of foreclosure and eviction proceedings during the emergency, while mandating uniform repayment plans for residents receiving mortgage and rental relief, its sponsors said.

According to supporters, the bill would help people like Jose Serrano, a New Jersey father who lost his job cleaning hotels at the onset of the pandemic.

“I haven’t worked in almost four months and currently don’t have any income,” said Serrano, a member of advocacy group Make the Road New Jersey. “My landlord hasn’t been very understanding, and demands I pay him the rent I owe immediately.”

“My family and I are very thankful for this bill and its supporters,” Serrano said. “Without them, we wouldn’t be sure we could afford to stay in our home.”

Timberlake (Essex, Passaic), Wimberly (Bergen, Passaic), McKnight (Hudson) and Speight (Essex) released the following joint statement about their bill on Tuesday:

“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.

“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.”

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SUPPORTERS OFFER PRAISE FOR HOUSING BILL

Housing advocates and other supporters, including the NAACP and the Latino Action Network praised the bill, saying it will help to stem the tide of an expected wave of foreclosures and evictions in the wake of the COVID-19 pandemic.

Words of support included:

James Williams, Fair Share Housing Center director of racial justice policy – “The economic fallout from the COVID-19 pandemic is hitting families of color in New Jersey hardest. At a time when people across our state are marching in the street to dismantle systemic racism, this legislation recognizes the role discriminatory housing policies, including racist lending policies and redlining, have played in putting African-American and Latino families at risk of losing their homes in the current crisis. It represents an important step forward in preventing mass displacement at a time of unprecedented crisis. We must be careful to recognize that mass evictions are a tool used to gentrify communities of color.”

Maria Lopez-Nunez, deputy director of organizing/advocacy at the Ironbound Community Corporation – “We thank Assemblywoman Timberlake for her leadership in introducing the People’s Bill that will show real compassion towards both renters and homeowners in New Jersey during this pandemic. This bill will help everyone, including undocumented residents, who have been unable to access other government relief programs. We also applaud Senator Singleton, for moving this bill forward in the Senate too, and we need to see this bill signed into law by Gov. Murphy before another month of rent is due on July 1. Doing so will make New Jersey a real leader in providing renter and homeowner protections during the COVID-19 pandemic.”

Joe Mangino, board president of the New Jersey Organizing Project – “I applauded the governor back in March when he announced a freeze on evictions and foreclosures and a mortgage forbearance. I reached out to my bank and realized the fine print – banks were being asked to defer the forbearance payment to the end of the loan. This was voluntary and there was no mandate. My bank, and many others, are not volunteering and must be told. Today, June 16, while I was testifying in support of A4226, is coincidentally the same day that my 90-day forbearance ends, and my mortgage company is expecting a lump sum payment to bring my mortgage current. We need to give homeowners and renters a fighting chance to survive.”

Staci Berger, president and CEO of the Housing and Community Development Network of New Jersey – “NJ has received more than 1 million unemployment claims, which means that household incomes are in flux, in decline, or in doubt. Rents here are among the most expensive in the nation. A minimum wage worker would need to work three full-time jobs to afford a modest two-bedroom apartment, before the pandemic. People cannot stay home safely now, or in the future, if they do not have a safe, affordable place to call home. The pandemic has affirmed what community leaders and health experts have been saying: housing is health. NJ tenants and homeowners need this protection to ensure that the public health crisis does not become a housing disaster.”

Carlos Bonilla, New Jersey Organizing Project – “Halfway through March, when quarantine was announced due to COVID-19, I lost my job at Target in Mays Landing, where I’ve been established the past three years. My biggest fear in not paying my rent is my credit being affected negatively. This year alone I’ve been focusing on trying to build my credit, and it would be aggravating to see my score drop because I cannot afford my rent. At the end of the day we should all continue to remain in our homes as the pandemic continues to grow. We at New Jersey Organizing Project support renters’ right to a home, and we want this bill to be passed for the sake of the renters in our communities.”

Beverly Brown Ruggia, financial justice organizer for New Jersey Citizen Action – “Throughout this crisis New Jersey Citizen Action has heard from people daily who are terrified they will not be able to pay their rent or their mortgages and that they will lose their homes when the eviction moratorium ends. This legislation addresses the deep economic pain New Jerseyans are experiencing and it recognizes people of color in the state have been disproportionately hurt by the COVID 19 crisis. It provides a sound and compassionate economic recovery for all in New Jersey.”

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