Page 32 - RE-NJ Nov.2021 #59

30 NOVEMBER 2021
GUEST COLUMN
TURNING THE PAGE ON A CHALLENGING YEAR
By David Brogan
Like everyone else, we expected 2021 to be better and easier. At the beginning of the year, the vaccines were starting to roll out, the feeling was positive and the worst was behind us. But then the reality of 2021 set in. Across the country, with the rise of the Delta variant, supply chain problems, labor shortages and unanticipated weather events, we were thrust into another difficult year. It wasn’t the 2021 we had all hoped for — it was “2020 redux” — and it was just as challenging but in different ways.
I think many elected officials view the apartment industry as being one-dimensional. That is, they simply view it as a landlord renting housing to a tenant. In reality, the construction, maintenance and operation of hundreds of thousands of apartments is complicated.
Furthermore, we support over 50,000 people in full-time jobs, with benefits. Collectively, all of this helps revitalize municipalities and boost economic activity throughout the state. The owners of these properties utilize hundreds of New Jersey businesses both big and small, by purchasing products and services. So, when you walk into an apartment, understand that businesses provide everything you see, from windows, doors, flooring and light fixtures, to cabinets, countertops, sinks and appliances. I think elected officials forget that we are an important and multifaceted industry in this state. We not only provide and maintain housing, but
in the process, we provide tens of thousands of good-paying jobs, boost our economy and pay billions of dollars in tax revenue.
So, as the pandemic raged on, while
David Brogan is the executive director of the New Jersey Apartment Association.
elected officials were focused solely on preventing evictions, we had to deal with that plus every other issue facing businesses during this time. That included keeping employees safe and being responsive to our customers, which are our tenants, along with maintaining the buildings and meeting our own financial obligations. Again, I think that sometimes elected officials forget these challenges and the multifaceted nature of our business.
In short, it was a very challenging year to say the least. Below are the answers to some key questions about what transpired in 2021 and where we go from here.
Clearly from a government affairs perspective, the eviction moratorium was the primary focus for the association. How do you think the Legislature handled that issue, and are you comfortable with the outcome?
I think everyone knew that such a policy could not remain in place forever, whether that was the federal eviction moratorium or the state eviction moratorium. As we pulled out of the grasp of the pandemic, government mandates to provide free housing would no longer be justifiable from either a policy perspective or
a legal perspective. And figuring out how to end the eviction moratorium, while keeping the perspectives and concerns of both the landlords and the tenants in mind was no easy task. Having said that, my hat goes off to Sen. Brian Stack, who forged a compromise and shepherded S3691 through the legislative process from beginning to end.
What is so unique about S3691 is that it not only addressed the concerns of all parties, but it did so with a sense of pragmatism and realism. The bill phased out New Jersey’s
eviction moratorium in a way that helped the most vulnerable people, low- and moderate-income families, for the longest period of time. It
also provided $250 million in utility assistance and $500 million in rental assistance. What’s more, that $500 million was in addition to the $625 million we had already received in rental assistance from the federal government. So, funding at this level can help both tenants and landlords dig out of the hole that was created by COVID-19 and help them get back on their feet.
Lastly, if you look at the comments made about the bill after it got signed, you will see that both landlord advocates and tenant advocates lauded the bill. That doesn’t happen very often.
That is a unique outcome.
It seems like getting a final agreement on a bill like that would be difficult, if not impossible. What was that process like?
The negotiations on that bill were extremely difficult. Both sides
felt justified in their position. The tenant advocates felt that it was a life-or-death situation, and while we understood that, the practical reality was that we could not continue to provide that housing without rent revenue. We were caught between
a rock and a hard place. And while the banks were giving mortgage forbearance, that was only temporary and, quite frankly, the mortgage is only a portion of landlords’ overall costs.
For example, there was no moratorium on property tax payments or income tax payments. Furthermore, if property tax payments weren’t made in full and on time, liens could be placed on our properties. On top of that we needed to maintain those properties, make repairs and meet all of our other
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