Source: https://www.nynjconsumerlaw.com/category/nj-landlord-tenant-law/
Timestamp: 2020-08-11 04:30:05
Document Index: 724120012

Matched Legal Cases: ['§ 1437', '§ 1437', '§ 1701', '§ 1715', '§ 17151', '§ 12741', '§ 12901', '§ 11360', '§ 1485', '§ 1484', '§ 1490', '§ 1490', '§ 42', '§ 1490']

NJ Landlord-Tenant Law Category Archives — New Jersey Property Management Blog Published by New Jersey Consumer Law Attorneys — Offit Kurman
Articles Posted in NJ Landlord-Tenant Law
COVID-19: CARES Act & Federal Restrictions on Evictions
On March 27, 2020, President Trump signed the COVID-19/Coronavirus Rescue bill or “CARES Act” into law. The CARES Act has important implications for borrower/landlords of properties identified as “Covered Properties.” In short, CARES Act “Covered Properties” are subject to specific eviction restrictions lasting until the end of July 2020. These restrictions are identified in Sections 4022 through 4024 of CARES.
“Covered Properties” are: (1) properties that participate in a federal housing program or (2) properties that have a “federally backed mortgage loan” or “federally backed multi-family mortgage loan”. The below table identifies the types of covered properties. The bolded terms are more common federal programs or “backed” loans.
Federal Housing Program
Federally Backed Mortgage Loan/Multi-Family Loan
• Section 8 Housing Choice Voucher program (42 U.S.C. § 1437f)
• Section 8 project-based housing (42 U.S.C. § 1437f)
• Section 202 housing for the elderly (12 U.S.C. § 1701q)3
• Section 236 multifamily rental housing (12 U.S.C. § 1715z–1)
• Section 221(d)(3) Below Market Interest Rate (BMIR) housing (12 U.S.C. § 17151(d))
• HOME (42 U.S.C. § 12741 et seq.)
• Housing Opportunities for Persons with AIDS (HOPWA) (42 U.S.C. § 12901, et seq.)
• McKinney-Vento Act homelessness programs (42 U.S.C. § 11360, et seq.)
• Section 515 Rural Rental Housing (42 U.S.C. § 1485)
• Sections 514 and 516 Farm Labor Housing (42 U.S.C. §§ 1484, 1486)
• Section 533 Housing Preservation Grants (42 U.S.C. § 1490m)
• Section 538 multifamily rental housing (42 U.S.C. § 1490p-2)
• Low-Income Housing Tax Credit (LIHTC) (26 U.S.C. § 42)
• The Rural Housing Voucher Program (42 USC § 1490r) • Federally Backed Mortgage Loan, 1-4 Family purchased or securitized by Fannie/Freddie (Note: Fannie and Freddie purchase the overwhelming majority of 1-4 family mortgages on the secondary market)
• Federally Backed Mortgage Loan, 5+ family purchased or securitized by Fannie/Freddie
• Federally Backed Mortgage Loan or Multi-Family Loan insured, guaranteed, supplemented, or assisted in any way by the Federal Government.
For 120 days, measured from March 27, 2020 (in other words until July 25, 2020), landlords of covered properties cannot:
Initiate/file any non-payment of rent proceedings against Tenants in covered properties;
Charge/collect late fees from tenants.
This federal law preempts any state law or executive action which may have permitted the filing of non-payment cases but stayed the execution of a judgment for possession. Where New Jersey Governor Murphy’s EO106 permitted the filing of a nonpayment case, the CARES Act does not. The CARES Act specifically prohibits “any filing” or “initat[ion] of legal action to recover possession.
In short, if you are a landlord of a “Covered Property” you cannot initiate a nonpayment of rent case against a tenant, nor can you collect late fees for unpaid rent, during the time period March 27, 2020 to July 25, 2020.
If you a landlord of a property which does not meet the definition of a “Covered Property” (in its entirety) but you have tenants who receive Section 8 voucher assistance, those tenants who receive the voucher are protected by the eviction moratorium–even if other tenants are not.
Tagged: "New Jersey Landlord-Tenant Law", Coronavirus, COVID-19, Eviction, NJ Landlord-Tenant, Nonpayment and Rent
COVID-19: Small Business Administration “EIDL” Loans for Multi-Family Property Owners
Published on: March 25, 2020 | by Thomas Major, Esq.
The Small Business Administration administers the “Economic Injury Disaster Loan” program. This program, recently expanded to address the economic fallout of COVID-19, may be especially useful to NJ landlords, multi-family property owners and other small business suffering dramatic reductions in revenue. This program (just one of many) may aid businesses in search of liquidity.
The Economic Injury Disaster Loan Program is a component of the Small Business Act, 15 USC 636. An eligible business must be in a “declared disaster area.” New Jersey is, by Presidential action, a declared disaster area due to COVID-19. To qualify for an EIDL loan, the applicant must be (1) a “small business;” (2) have used/consumed “all reasonably available funds” and (3) “unable to obtain credit elsewhere”. Importantly, principal owners (those with a 20% or greater interest in the company) and affiliate companies must also have expended “all reasonably available funds.” An approved loan carries an interest rate of 3.75%. The funds can be used for “working capital necessary to carry on…until resumption of normal operations.” The funds cannot be used to refinance debt, pay other agency loans, pay taxes or pay dividends or other non-wage compensation. This is only a summary of the basics. There are additional underwriting criteria and, of course, paperwork.
Important changes may be coming to the EIDL program. Pending federal legislation may relax the “unable to obtain credit elsewhere” requirement. Although the application can be onerous (and requires significant owner financial disclosure) the program offers important liquidity during uncertain times.
Tagged: COVID-19 and NJ Landlord-Tenant
Updated: March 25, 2020 8:45 am
COVID-19: Executive Order 108 and Uniformity of Restrictions
Published on: March 22, 2020 | by Thomas Major, Esq.
On March 21, 2020, Governor Murphy signed Executive Order 108. The purpose of this Order is to create statewide uniformity of COVID-19/Coronavirus related restrictions. The Order invalidates “all county or municipal restriction imposed in response to COVID-19…” that any in way “will or might conflict” with the statewide restrictions imposed by Executive Order 107. This is an important, though unfortunately necessary, Order. During uncertain times, multi-family property owners and managers will benefit from this uniformity.
Unless specifically permitted by the Governor, municipal restrictions imposed in response to COVID-19 are invalidated. Varying curfews and county-specific bans on “worldly employment or business” are not enforceable. The only COVID-19/Coronavirus related restrictions to be followed are those imposed by the federal government and Executive Order 107. A subsequent post will address the specific effects of Executive Order 107 on the multi-family property industry. For now, the takeaway is: Make business decisions according to State-wide guidance, not local authority.
Tagged: "New Jersey Landlord-Tenant Law", Coronavirus, COVID-19 and NJ Landlord-Tenant
Updated: March 22, 2020 9:33 am
COVID-19: NJ Set to Impose Lockout Moratorium
Published on: March 19, 2020 | by Thomas Major, Esq.
Major changes are coming to the multi-family property industry today. Governor Phil Murphy is set to sign Assembly Bill A3859. This bill prohibits lockouts during a Governor-declared State of Emergency. Once signed into law, multi-family properties owners can expect the Governor Murphy to immediately impose a lockout moratorium. It is important the landlords and tenants understand what A3859 prohibits and what it does not.
1. Eviction Actions Can Be Still Initiated: A3859 does not prevent landlords from filing eviction actions. Instead, it stays the enforcement of a judgment of possession (no lockout) until the State of Emergency lapses. Technically, A3859 requires that the Governor issue an order triggering the moratorium—but this is a near certainty.
2. The Moratorium is Not Indefinite: A3859 allows the Court to proceed with a lockout “in the interest of justice.” While this term is not defined, we can expect that eviction cases for causes other than nonpayment (damage to apartment, assault on landlord–to name two) may be enforced in the “interest of justice.” Non-payment of rent cases are the most likely to be affected. The overwhelming majority of these cases will not proceed to lockout during the State of Emergency. Unless some exceptional circumstances are present (for example, a large pre-Coronavirus panic balance; a property on the brink of insolvency and similar exceptional consequences), landlords and tenants should expect that any pending or to-be-initiated nonpayment case, will be subject to the moratorium.
Tagged: "New Jersey Landlord-Tenant Law", Eviction and NJ Landlord-Tenant
Updated: March 22, 2020 9:32 am
Published on: May 27, 2016 | by Thomas Major, Esq.
Published on: May 2, 2016 | by Thomas Major, Esq.