Page 34 - RE-NJ Nov.2021 #59
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                32 NOVEMBER 2021
the state should eliminate it. It is an
unnecessary barrier that simply slows down the process. But even with
that criticism, New Jersey is doing a better job at distributing the rental assistance money than most other states.
Is the amount of rental assistance enough to make your industry whole?
As I mentioned earlier, S3691 allocated $500 million in rental assistance from American Rescue Plan Act (ARPA) funds. This is
in addition to the $625 million of federal funding that New Jersey
was provided by the U.S. Treasury
for the specific purpose of rental assistance. Furthermore, we had
the early $100 million program, as well as municipal and county rental assistance programs. Collectively, this is a significant amount of funding, but it is limited.
First, we anticipate that by the time the eviction moratorium is fully lifted on Dec. 31, New Jersey’s residential landlords, both large and small, will have incurred between $2.5 and
$3 billion in unpaid rent. Rental assistance will only be enough to cover approximately half of those losses. Second, rental assistance
is being allocated both to pay rent arrears and to help tenants pay their ongoing rental obligations, so not every dollar is going toward satisfying what tenants owe. Third, one of
the issues that we are experiencing now is tenants refusing to apply for assistance, planning just to move when the eviction moratorium expires. S3691 required tenants to apply for rental assistance in order
to get ongoing protections, which was a good incentive toward utilizing the state and federal money that is meant to help them. However, even with that requirement, we hear from many landlords with tenants who simply will not apply. Finally, while the eviction moratorium protected
all tenants, rental assistance is being prioritized to low-income tenants. While we support that prioritization, that leaves many middle-income tenants with little or no chance of getting rental assistance. As such, the only way landlords can even consider recouping those arrearages is by going to court and getting a money judgment, which isn’t easy.
Ultimately, both large and small landlords will collectively incur billions of dollars in losses that will never be compensated from rental assistance. It’s important to recognize
the challenges that this creates for landlords and the entire multifamily ecosystem.
What do you expect over the next six months?
First, I am hopeful that Gov. Murphy and the Legislature recognize that
we are an industry that was hurt during the pandemic, and we are recuperating. No other industry was treated the way we were. In many cases, we were forced to provide housing with no compensation from tenants for more than a year and a half, and it has taken its toll. So, I just hope that they understand that adding new mandates or new restrictions on an industry that is trying to recover is not good public policy.
More specifically, we have heard rumors about statewide rent control. That would be one of the worst policy moves in New Jersey’s history. New Jersey already allows municipalities to impose rent control if they wish, and who better to understand their towns but the mayors and councils themselves. Beyond that, rent control negatively impacts economic activity and property values. It minimizes
or eliminates landlords’ ability to maintain their properties, and, most importantly to the Legislature, it leads to a massive property tax shift onto homeowners. Therefore, if
such a policy were to be imposed, homeowners better be ready for a massive property tax increase.
We also have to ensure compliance with new statutes such as the Fair Chance in Housing Act, new laws concerning lead-based paint and a mandate to install covers on steam radiators upon the request of tenants. NJAA takes pride in providing information to both members
and non-members regarding their responsibilities under these new laws. We say it all the time: “What you don’t know can, in fact, hurt you.” So we urge those in the industry to look
at our website, see what classes we have to offer and participate in those classes. Providing education and professionalizing apartment staffs is just one way we make the distinction
between our members and the rest of the landlords out there.
Lastly, your association was one of the most visible and active associations
in New Jersey during this pandemic. What is next for the NJAA?
The pandemic and subsequent focus on housing brought our industry and our association front and center.
As the only statewide association focusing solely on the multifamily industry, I felt that we needed to take a much more visible approach. Over the past 20 months we were mentioned in the press over 300 times. While that is positive, it was actually necessary to get our side
of the story out to the public and to lawmakers. I think that led to more balanced policymaking. I also think it established our association as one of the most effective associations in the state, and I am proud of that.
As for what’s next, beyond our nonstop efforts to protect and promote the multifamily industry, NJAA will be moving from Monroe Township to State Street in Trenton, in March 2022. I feel that being on State Street will not only help us be more effective in lobbying simply due to its proximity to the statehouse, but it also lets everyone know that we have arrived. That is, we have taken an association that was somewhat in the background, and we have brought it to the forefront. Our issues are important enough to be front and center, and our association should do the same. At the end of the day, there are few things more important than housing, and I am proud to lead the organization tasked with protecting that housing.
DAVID BROGAN is the executive
director of the New Jersey
Apartment Association, a statewide organization whose membership owns and manages more than 225,000 apartment homes across the state and boasts over 400 vendor members that represent approximately 135 industries throughout the state and nationally. RE
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