Back-Rent Forgiveness for NJ Tenants
Governor Murphy on Friday introduced a new emergency aid program Friday that will allow owners of small rental apartment buildings to tap into a pool of $25 million in grant money to make up for rent that tenants affected by the crisis couldn’t pay from April to July. The landlords who receive the federal funds will then be required to cancel the back rent and late fees those tenants weren’t able to pay in that time. The state’s Small Landlord Emergency Grant program is open to landlords of residential properties with three to 10 units — buildings that are found across the state but are largely inhabited by low- and moderate-income residents in urban areas.
“For this program we are standing up $25 million from the Coronavirus Relief Fund established through the Federal CARES Act. This program, which is authorized by the New Jersey Mortgage and Housing Finance Agency, will provide emergency grant funding to the owners of small rental apartment buildings between three and ten units to help cover their COVID-19 related rent losses from April through July. Landlords who receive assistance through this program must then pass along the benefits to their tenants by forgiving outstanding back rent and late fees accumulated during this same period.” said Governor Murphy in his press briefing on Friday.