State lawmakers on Monday are slated to consider a rental assistance bill that could help soften the blow to apartment owners during the COVID-19 crisis, but industry leaders say they need help from the federal government to weather the storm over the long haul.
The domino effect: Without rental assistance, who’s left holding the bag?
When COVID-19 hit the United States, most Americans never imagined the impact it would have on daily life. As the virus spread, states like New Jersey started to implement policies to promote social distancing and to help those impacted by the economic fallout of the crisis, including policies such as an eviction moratorium. While such a policy addresses one specific immediate-term problem, it does not address the systemic need for rent revenue that supports an entire multifamily ecosystem, which is a critical component of New Jersey’s economy and significantly supports the State and municipalities through taxes. Without rental assistance and an understanding that rent is still due, multifamily jobs will be lost, private-sector financial obligations may not be met, utilities will not be paid and municipalities might see shortfalls due to the inability to pay property taxes. That is why we need a rental assistance program immediately.
Brogan: Apartment industry bracing for impact of ‘stay at home’ order, economic uncertainty
With millions of New Jersey residents ordered to stay at home, apartment owners and managers are set to play a critical role in the effort to curb the spread of COVID-19. They’re also bracing for a major impact from a teetering economy and the prospect of some residents being unable to pay rent, which looms large against the backdrop of paying their own employees, mortgages and property taxes. That’s not to mention the need to respond to tenant emergencies and disruptions to the supply chain, which have impacted everything from cleaning supplies to appliances
Rent control is not a solution to our affordable housing crisis
Among the many issues facing our nation, the availability of affordable housing, or lack thereof, is a problem that lawmakers have been trying to address for decades. Federal programs that either support the development of affordable housing or provide assistance to renters through vouchers have been woefully underfunded, and state and local elected officials are looking for solutions. Unfortunately, some have turned to rent control as an answer. But the reality is that rent control will not only fail to solve our affordable housing crisis, it will actually make it worse.
