Bill > S1096

Introduced Session

This bill requires the forbearance of mortgage loans for commercial and residential property owners during the period during which the Public Health Emergency and State of Emergency declared by the Governor in Executive Order 103, March 9, 2020 are in effect and concluding six months following the conclusion of the State of Emergency or Public Health Emergency, whichever is earlier. The mortgage forbearance period of a property owner is to be 90 days. A property owner may request, and is to be granted, a subsequent forbearance period of 90 days, for a total of not more than 180 days. Under the bill, the Commissioner of Community Affairs is to notify owners of the forbearance program, encourage owners to seek United States Department of Housing and Urban Development housing counseling, and post information on eligibility and the process for the forbearance on the department's Internet website no later than one month following the effective date of this act. The bill requires a mortgagee that grants a mortgage forbearance pursuant to the bill to encourage owners to seek out United States Department of Housing and Urban Development certified housing counseling and provide to the property owner confirmation of the approval of the forbearance, information concerning the process for forbearance, and information on how to request a subsequent forbearance. The bill also requires landlords to suspend rent, for a period of 90 days, upon written or electronic request to the landlord from a residential tenant or small business commercial tenant, for the period during which the Public Health Emergency and State of Emergency declared by the Governor in Executive Order 103, March 9, 2020 are in effect and concluding six months following the conclusion of the State of Emergency or Public Health Emergency, whichever is earlier. A landlord is required to notify the tenant in writing of the date on which rent payments are to resume. A tenant may request, and shall be granted, a subsequent forbearance period of 90 days, for a total of not more than 180 days. A tenant with rent suspended pursuant to the bill shall not be required to pay a fee related to the suspension or late payment or to pay the sum of the suspended rent upon the conclusion of the suspension of rent. Nothing in the bill prohibit a landlord and a tenant from establishing a payment plan for the balance of suspended rent or from applying the security deposit toward that balance. Unless otherwise stipulated by the landlord and the tenant, the payment period of any rent subject to the suspension shall be extended by the number of months the suspension is in effect. A violation of the provisions of the bill concerning rent suspension for tenants is an unlawful practice under the Consumer Fraud Act. An unlawful practice under the Consumer Fraud Act is punishable by a monetary penalty of not more than $10,000 for a first offense and not more than $20,000 for any subsequent offense. Violations can also result in cease and desist orders issued by the Attorney General, the assessment of punitive damages, and the awarding of treble damages and costs to the injured party. In addition, this bill requires the forbearance of any commercial, student, or other consumer loan, including an extension of credit for borrowers during the period in which the Public Health Emergency and State of Emergency declared by the Governor in Executive Order 103, March 9, 2020 are in effect and concluding six months following the conclusion of the State of Emergency or Public Health Emergency, whichever is earlier. The forbearance period of a borrower is to be 180 days. No borrower requesting a forbearance is to be required to provide proof of economic hardship. In addition, the repayment period of any loan subject to forbearance is to be extended by the number of months the forbearance is in effect. During the time of the forbearance, and during the period constituting an extension of the loan, all terms and conditions of the original loan, except with regard to default and delinquency during forbearance, are to continue without modification, and there no fees may be assessed for the forbearance, or penalty for early repayment. The Commissioner of Banking and Insurance is to develop separate, specific guidelines for the forbearance of student loans, extensions of credit, and other consumer loans. This bill also provides that no consumer reporting agency shall include, and no user of a consumer report shall consider, any adverse information in a consumer report that is a result of the coronavirus disease 2019 pandemic, with respect to an affected person who provides the agency or user notice pursuant to the bill. Under the bill, an affected person may contact any consumer reporting agency or user of a consumer report and request that the agency or user disregard any adverse information related to the person obtained by the agency or user with respect to the period beginning with the Public Health Emergency and State of Emergency declared by the Governor in Executive Order 103 of 2020 and extending 90 days following the end of that public health emergency and state of emergency. The bill requires any consumer reporting agency or user of a consumer report that receives a request to respond to the affected person and the Director of the Division of Consumer Affairs in the Department of Law and Public Safety within five days of receiving the request.

Committee Categories

Britnee Timberlake (D)*, 

Introduced in the Senate, Referred to Senate Community and Urban Affairs Committee (on 01/09/2024)

Official Document