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THE END OF NEW JERSEY’S EVICTION MORATORIUM CALLED INTO QUESTION
By August 6, 2021 Posted in Landlord/Tenant Law Share
New Jersey’s Governor Murphy signed NJ S.B. 3691 / A.B. 5685 (2021) yesterday, which was set to officially end New Jersey’s Eviction Moratorium. However, this end of the moratorium has been called into question by the recent CDC Order.
The law ending the eviction moratorium has many facets. It provides certain credit protection and eviction protection for tenants, which are now in effect. Eviction for cases other than nonpayment of rent are able to proceed as normal. However, the facet of the law which would allow for landlords to evict tenants for nonpayment of rent will not be truly in effect because of the CDC Order.
The law provides for credit protections for certain tenants. Notably, landlords are prohibited from sharing information about any eviction proceedings for nonpayment of rent from March 1, 2020, through August 31, 2021 (the “Covered Period”). Likewise, landlords are not permitted to share information on a tenant’s failure to pay rent during the Covered Period with other landlords, debt collection agencies, or credit reporting agencies. Landlords may, however, share information on a tenant’s failure to pay rent prior to or after the Covered Period. Additionally, landlords may speak with their attorneys about tenants who failed to pay rent during the Covered Period and may file lawsuits seeking that unpaid rent.
Certain tenants can receive some additional protection under this law if they file a “Hardship Certification.” A Hardship Certification certifies: a tenant’s income; that, because of a COVID‑19 hardship, the tenant was unable to pay rent; and that the tenant has applied for rental assistance.
Importantly, this law affects tenants differently depending on their income. However, to repeat, the CDC Order currently prevents eviction for most cases of nonpayment of rent. So, even with this new law being passed, portions of it are effectively unenforceable at this time because of the CDC Order.
- Those households making over 120% of the Area Median Income (“AMI”):
- receive no credit protections under the new law; and
- after August 31, 2021, can be evicted for unpaid rent (regardless of when it came due) . . . assuming they are not protected by the CDC Order.
- Those households making between 80% and 120% of AMI:
- receive credit protects for unpaid rent that was due between March 1, 2020, and August 31, 2021; and
- cannot be evicted for nonpayment of rent that came due between March 1, 2020, and August 31, 2021; and
- can be sued for a money judgment for rent that came due between March 1, 2020, and August 31, 2021; and
- can be evicted for rent that came due before March 1, 2020, or after August 31, 2021 . . . assuming they are not protected by the CDC Order.
- Those households making less than 80% AMI, who have not submitted a Hardship Certification:
- receive credit protects for unpaid rent that was due between March 1, 2020, and August 31, 2021; and
- cannot be evicted for nonpayment of rent that came due between March 1, 2020, and August 31, 2021; and
- can be sued for a money judgment for rent that came due between March 1, 2020, and August 31, 2021; and
- can be evicted for rent that came due before March 1, 2020, or after August 31, 2021 . . . assuming they are not protected by the CDC Order.
- Those households making less than 80% AMI, who have submitted a Hardship Certification:
- receive credit protects for unpaid rent that was due between March 1, 2020, and August 31, 2021; and
- cannot be evicted for nonpayment of rent that came due between March 1, 2020, and December 31, 2021; and
- can be sued for a money judgment for rent that came due between March 1, 2020, and December 31, 2021; and
- can be evicted for rent that came due before March 1, 2020, or after December 31, 2021 . . . assuming they are not protected by the CDC Order.
Thus, the CDC Order significantly affects the end of New Jersey’s State Eviction Moratorium.
As of right now, the CDC Order prevents eviction for nonpayment of rent in counties experiencing “substantial” or “high” rates of transmission. Presently, that means that the CDC Order prevents eviction for nonpayment of rent in every New Jersey county except for Warren County.
In essence, the Governor may have signed NJ S.B. 3691 / A.B. 5685 (2021), but the recent CDC Order prevents those aspects of the law which would permit evictions from taking effect anywhere in the State except for Warren County. However, the protections for tenants afforded by NJ S.B. 3691 / A.B. 5685 (2021) are in effect throughout the State. While which counties are protected may change, ultimately, the signing of the bill right now benefits tenants, but does little to benefit landlords.
If you have any questions on how this new CDC order applies or how it may affect you, please reach out. Our attorneys at Griffin Alexander, P.C., are here to help you navigate the rapidly changing legal field.
The information in this Client Alert is provided solely for information purposes. It should not be construed as legal advice on any specific matter and is not intended to create an attorney-client relationship. The information provided herein may not be applicable in all situations and should not be acted upon without specific legal advice based on particular circumstances. Each legal matter is unique, and prior results do not guarantee a similar outcome.
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