Page 10 - Issue 45 Sept2020
P. 10
8 SEPTEMBER 2020
STATE LAUNCHES RELIEF PROGRAM FOR SMALL APARTMENT OWNERS
State officials are administering a $25 million grant program for small landlords who have lost rent revenue during the coronavirus crisis.
Spearheaded by the New Jersey Housing and Mortgage Finance Agency, the program will make payments to owners of apartment properties with at least three and no more than 10 units. The state will do so using funding under the CARES Act, the federal COVID-19 relief bill passed in late March, seeking to cover missed rent payments from April and through July.
Grant amounts will be generated based on the total amount of missed rental payments and the number of COVID-impacted rental units that serve low- and moderate-income tenants, according to a news release. Landlords who receive assistance will be required to pass along benefits to their tenants by forgiving back rent and late fees accumulated by pandemic-impacted units.
“To emerge stronger from this crisis, we need to make direct investments
in our hardest hit neighborhoods and communities,” Gov. Phil Murphy said Aug. 7. “Ensuring that responsible landlords can continue to maintain their properties and provide quality housing to our tenants is essential to our recovery. Through this program, we can also provide direct support to COVID-impacted renters by forgiving back-rent.”
The New Jersey Apartment Association said it was encouraged by the program and hoped to see additional relief for the industry, as landlords face revenue shortfalls under an eviction moratorium during the state’s emergency period.
“We are encouraged by the administration’s
Gov. Phil Murphy speaks in March at press briefing on the COVID-19 crisis in New Jersey
David Brogan
serves as DCA commissioner and the HMFA’s chair. “Rather, they are families and individuals. And like the families they rent to, they
Sheila Oliver
action today to provide direct assistance to small landlords,” said David Brogan, the NJAA’s executive director.
“While much
attention has been focused primarily on tenants, we cannot forget that landlords must operate and maintain those buildings, and also, they must meet their financial obligations.
“You cannot look at this problem
in a vacuum. While the eviction moratorium helps tenants stay in their homes, there has been little attention paid to the plight of landlords of all sizes. At the end of the day, it helps no one if a bank takes over a rental property due to foreclosure.”
State officials say the Small Landlord Emergency Grant Program will earmark one-third of its funds for applicants who are registered in
the Department of Community Affairs’ database as individual
or family owners. Along with
the size requirements, qualified applicants must meet the following specifications:
• Owners with properties that are not seasonal or vacation rentals
• Properties must have current fire inspection certificates as of March 9, 2020
• Owners of properties with at least one non-vacant rental unit impacted by COVID-19 between April and July 2020
• Owners with properties that have low- to moderate-income rent levels or rent based on up to 80 percent of the area median income.
HMFA accepted applications for the project in late August and said it will allocate grant funding on a case-by- case basis, examining the number
of COVID-impacted units and the amount of missed rent. Applicants must be the primary property owner of a residential rental property in New Jersey and be registered with the DCA’s Bureau of Housing Inspection
as of July 17, 2020.
“We know that many of New Jersey’s landlords are not companies or corporations,” said Lt. Gov. Sheila Oliver, who
are struggling because they are often locked out of access to capital and federal resources.
“The number one priority of this program is to offer much-needed relief to small landlords, who will in turn pass along the benefits to their tenants who are also fighting to stay afloat in the midst of this ongoing public health and economic crisis.”
Charles A. Richman, HMFA’s executive director, said roughly 30 percent of all New Jersey renters and 27 percent of low- and moderate- income renters live in three- to 10-unit buildings.
“We have designed this grant program to ensure that our most vulnerable renters and landlords get the help that they need,” Richman said. “At NJHMFA, our mission to ensure safe and equitable housing for every resident of New Jersey has never been more critical than during this crisis. These dollars
will have the increased impact of securing financial sustainability
for New Jersey’s families. HMFA is enormously proud to provide this assistance to landlords and tenants and thankful for Gov. Murphy and Lt. Gov. Oliver’s championing of this program.” RE
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