Bill > S186

Introduced Session

This bill revises the name of the "Homelessness Prevention Program," requires changes to administrative regulations for the Homelessness Prevention Program, and makes an appropriation. Under the bill, the Commissioner of the Department of Community Affairs (DCA) would rename the current "Homelessness Prevention Program" to the "Eviction and Homelessness Prevention Program." Additionally, the commissioner would revise and amend the "Homeless Prevention Program Regulations" to require the following: (1) the regulations would be renamed the "Eviction and Homelessness Prevention Program Regulations"; (2) a household would be eligible to participate in the program if, due to reasons beyond the household's control, the household is unable to make residential rental payments which are due and owing pursuant to a valid and enforceable oral or written lease, stipulation of settlement, judgment, order or other type of legally binding agreement; (3) a household would be eligible for assistance under this program regardless of whether the household has been served with a summons and complaint for eviction; (4) a household would be eligible for assistance if their annualized current income is no more than 80 percent of the area median income; however, the commissioner may establish funding priorities to benefit very low income and low income persons and households; (5) a household would be eligible for assistance under this program although it may be unlikely for the household to have the ability to pay shelter costs after the period of assistance has ended; (6) eligible households would be awarded grants for periods of up to two years, depending upon the household's particular circumstances. Assistance would be provided along a continuum based upon the income level of the tenant household, and would include deep subsidies, shallow subsidies, and flat dollar amounts. Such grants could be renewed to prevent eviction or homelessness. The commissioner would prepare a detailed guidance covering the amount and duration of such grants, in accordance with the following guidelines and principles: (a) for a very-low-income household, a deep subsidy would be provided in the amount necessary to limit the household's share of ongoing rent to not more than 40 percent of the household's income; (b) for a low-income household, a shallow subsidy would be provided in the amount necessary to limit the household's share of ongoing rent to not more than 40 percent of the household's income, provided, however, that the amount of any such subsidy would not exceed $800 per month; and (c) for a moderate-income household, assistance in the form of a flat monthly grant of $250 would be provided to the household if the household pays more than 50 percent of the household's income as ongoing rent. (7) during the course of the payment period, if the department is notified by either the landlord or the program participant that a person or household has begun to experience difficulty paying rent as a result of reasons beyond the household's control, the household's income and family situation would be reevaluated in light of the changed conditions, and the person or household would be placed in a different assistance tier, if necessary, to prevent eviction; and (8) during the course of the payment period, a participant household would certify the household's current income once every two months, using a one-page form to be developed by the department, including any necessary attachments. Beginning the month following receipt of a certification, the department would increase or decrease the amount of subsidy provided to the household in accordance with the subsidy category applicable to the most recent reported income, provided that limited non-recurring short term increases in income would not require a subsidy adjustment. Under the bill, evictions based upon nonpayment or habitual late payment of rent which has accrued as of the end date of the eviction moratorium established by the Governor pursuant to Executive Order 106 of 2020, as extended, would be prohibited. A landlord would remain entitled to pursue recovery of the unpaid rent by filing an action in Superior Court for entry of a monetary judgment with applicable interest. The bill would appropriate $300 million from the funds provided to the State by the United States government under the "Coronavirus Aid, Relief, and Economic Security (CARES) Act" for assistance under this program, of which no more than $1,500,000 would be used by the DCA to defray the costs of administering the program. However, if $300 million is not available through the CARES Act, then the remainder of this amount would be appropriated from other federal funding for coronavirus relief as it becomes available, or from other funding sources as determined by the Legislature. Households otherwise ineligible for assistance using federal funds would be assisted with State funds.

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Nellie Pou (D)*,  Brian Stack (D)*,  Joe Cryan (D), 

Introduced in the Senate, Referred to Senate Community and Urban Affairs Committee (on 01/11/2022)

Official Document