How will NJ prevent a tsunami of evictions and foreclosures when the moratorium ends? – Asbury Park Press

New Jerseyans cannot be kicked out of their homes through at least mid-June under Gov. Phil Murphy’s eviction and foreclosure moratorium, a protection he has renewed each month since March 2020.

But housing experts sound the alarm about what will happen once that ban ends: an inevitable tsunami of evictions and foreclosures.

Landlords have already filed 58,861 eviction cases with the courts between April 2020 and March 2021, according to the Administrative Office of the Courts. While tenants cannot be physically locked out of their homes, landlords can still start the legal process. 

Once the moratorium ends, the Department of Community Affairs calculated, 191,000 people may be subject to eviction, said Lt. Gov. Sheila Oliver, who also heads the DCA. A higher estimate from the think tank Center on Budget and Policy Priorities shows that nearly 400,000 New Jerseyans are behind on rent.

“Unless the [latest federal stimulus] American Rescue Plan provides us with some extraordinary resource, we will continue to have a problem on our hands in the state,” Oliver said.

So how is New Jersey trying to prevent hundreds of thousands from being kicked out of their homes? On Monday, members of the New Jersey Assembly questioned Oliver and staffers at the Department of Community Affairs, the state agency in charge of many housing programs, for nearly three hoursabout budget needs and relief programs.

Here are some of the programs New Jersey is currently offering, plans to launch or has put on a wish list for how it could spend incoming federal funds: 

Renter, homeowner grants

States are waiting for rules from the federal government about how they can spend the latest funds from the $1.9 trillion federal stimulus, the American Rescue Plan. 

Oliver said she hopes the funds will allow New Jersey to provide families at risk of foreclosure the help they need. 

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“While many of the financial institutions in the state are providing forbearance for some mortgage holders, not every financial institution is, and forbearance basically just keeps that homeowner in debt before an extended period of time,” Oliver said. “Let’s cross our fingers and see if the feds are going to let us do something with mortgage assistance.”

New Jersey is estimated to receive $466 million for rental assistance and a $159 million boost for the state’s Low-Income Home Energy Assistance Program, which helps poor families cover energy costs. The act also earmarked $10 billion for mortgage assistance for families across the country, $5 billion for emergency housing choice vouchers to help people at risk of homelessness, survivors of domestic violence and victims of human trafficking, and $25 billion to boost affordable housing, according to an analysis from the offices of U.S. Sens. Bob Menendez and Cory Booker.

New Jersey currently has a second round of emergency rental assistance that is open to the public. Renters can apply to a lottery to receive up to a year’s worth of housing assistance out of a $353 million pot at njdca.onlinepha.com. If you need help filling out an application, visit housinghelpnj.org or call 888-691-3002. 

New Jersey hopes to help more than 30,000 households with this round, funded by the federal stimulus that was signed in December 2020. Last year, more than 15,000 New Jerseyans received rental assistance from the first-round pot of $91.75 million. 

Expanded access to counsel

In a majority of landlord-tenant court cases, landlords have the help of a lawyer, but renters do not. 

In May 2021, the state plans to launch a pilot program offering expanded access to legal counsel in eviction proceedings in Atlantic City, Trenton and East Orange, Oliver said. 

“A number of municipalities across the state have found that just simply providing legal assistance to tenants has reduced the number of evictions and gotten a lot more positive outcomes for tenants,” said Janel Winter, the director of the Division of Housing and Community Resources at the DCA. 

In Newark, tenants who make 200% under the federal poverty level and are facing eviction are guaranteed free legal representation, under a 2018 City Council ordinance. New York City and San Francisco offer similar programs, and the Seattle City Council passed a right-to-counsel program in March. 

Section 8 vouchers

New Jersey received an additional $25 million for its Section 8 Housing Choice Voucher program, a federal program that helps pay a portion of low-income families’ rents. That means an additional 2,000 families could receive assistance, Winter said.

The program currently helps more than 23,000 households. 

Utility grants, shutoff moratorium

Families who don’t make utilities payments cannot have their electricity, gas service or water shut off through June 30, 2021, under executive order. 

For those who need assistance making payments, visit nj211.org/utility-assistance-programs for a list of grant programs and eligibility requirements.

Homeless assistance

This year New Jersey expects to help close to 1,500 families who were experiencing homelessness by finding them rapid rehousing, 12 months of rental assistance and security deposit funds, move-in assistance and some case management, Winter said.

Ashley Balcerzak is a reporter in the New Jersey Statehouse. For unlimited access to her work covering New Jersey’s Legislature and political power structure, please subscribe or activate your digital account today.

Email: balcerzaka@northjersey.com 

Twitter: @abalcerzak 

Original Source: https://www.app.com/story/news/new-jersey/2021/04/13/nj-eviction-moratorium-how-state-prevent-home-foreclosures/7189508002/