The state of New Jersey plans to allocate $25 million from the Coronavirus Aid, Relief and Economic Security Act to fund a new program that will help New Jersey landlords with three to 10 rental units.
The Small Landlord Emergency Grant Program will cover missed rent payments from tenants between April and July. The grant amount is based on the amount of missed rent payments and how many properties the landlord owns.
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“To emerge stronger from this crisis, we need to make direct investments in our hardest hit neighborhoods and communities,” Gov. Phil Murphy said. “Ensuring that responsible landlords can continue to maintain their properties and provide quality housing to our tenants is essential to our recovery. Through this program, we can also provide direct support to COVID-impacted renters by forgiving back-rent.”
Many New Jersey landlords are not corporations but are families and individuals, so the program is needed, Lt. Gov. Sheila Oliver said.
“And like the families they rent to, they are struggling because they are often locked out of access to capital and federal resources,” Oliver said. “The number one priority of this program is to offer much-needed relief to small landlords, who will in turn pass along the benefits to their tenants who are also fighting to stay afloat in the midst of this ongoing public health and economic crisis.”
The program will be administered by the New Jersey Housing and Mortgage Finance Agency.
Shortly after making the announcement, Murphy was asked about the remainder of the CARES Act funding. The state received $2.4 billion.
Murphy announced July 17 that he was creating an office to oversee the distribution of CARES Act funds. The executive order gives officials 90 days to establish the office. A website will be made available to the public that will show consumers how the money is used, the governor said.
“There will be a full accounting of every penny of federal money, without question,” Murphy said.
How CARES Act funding can be used is still open to interpretation, the governor said, citing a conversation with U.S. Treasury Secretary Steven Mnuchin this week.
As of late Friday, Congress was still negotiating another relief bill. Murphy reiterated his call for direct funding to states and continued his criticism of Senate Majority Leader Mitch McConnell.
“Mitch McConnell may have forgotten that while he gets paid no matter what, millions of taxpayers who fund his salary and their families are hurting and need help yesterday,” Murphy said. “COVID-19 hasn’t cared if it ravages a Blue State or a Red State, and neither should Congress.”
