Rent Hikes Suspended For Thousands In NJ During Coronavirus

LIVINGSTON, NJ — Tens of thousands of New Jersey residents who rent their homes got a breath of relief from the coronavirus’ economic crunch on Thursday.

The New Jersey Housing and Mortgage Finance Agency (NJHMFA) unanimously voted to suspend all rent increases at nearly 36,000 eligible properties in its portfolio, according to Gov. Phil Murphy.

“This action specifically benefits thousands of low and moderate-income families who have been among those most-economically impacted by this crisis,” Murphy tweeted.

READ MORE: NJ Coronavirus Updates (Here's What You Need To Know)

According to Murphy:

"The suspension of rent increases will remain in place until the termination of Executive Order 103. Thereafter, eligible properties in the agency’s portfolio seeking rent increases of up to 1.4 percent may do so only after 30-day notice is provided to NJHMFA and residents. Any request in excess of this amount must first be reviewed and approved by NJHMFA staff."

It’s the latest step taken to help New Jersey renters – and homeowners – who are financially struggling due to the coronavirus.

Last month, Murphy enacted a moratorium on evictions and foreclosures during the viral outbreak.

The governor also asked any financial institution holding residential or commercial mortgages, equity loans, lines of credit or business loans to implement a process to work with the mortgagors or loan holders to avoid foreclosure or default arising out financial hardship caused by the COVID-19 pandemic.

• See related article: NJ Homeowners To Get Mortgage Help In Coronavirus Crisis

In March, at the direction of Murphy, the NJHMFA expanded its free housing counseling initiative to help renters and homeowners who are threatened with a loss of housing due to the COVID-19 crisis.

The expanded program will now include pre-foreclosure counseling to provide upfront assistance to help homeowners avoid potential foreclosure. At the same time, the counseling made available to renters will guide them on how to approach discussions with their landlords on dealing with their rent situation.

"Renters, particularly those who are gig workers or employed in sectors such as restaurants, bars and other industries hard hit by the COVID-19 crisis, are facing severe income reductions or losses," NJHMFA Executive Director Charles Richman said. "These new counseling initiatives will give them, as well as homeowners on the verge of foreclosure, resources and guidance on how to help stabilize their housing options."

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