Governor Murphy Signs Executive Order Providing Critical Short-Term Support for Renters
Additional Informational Resources for Renters, Homeowners, and Landlords Now Available
TRENTON – To provide additional options to tenants who
are struggling financially as result of COVID-19, Governor Phil Murphy
today signed Executive Order No. 128, allowing tenants to direct their
landlords to use their security deposits to offset rent or back rent.
“We
recognize the anxiety that so many are feeling about looming rent
payments, and during this emergency renters should have the ability to
utilize their security deposit to help them stay in their place of
residence,” said Governor Murphy. “While this action does not
resolve the broader financial concerns of New Jerseyans, this will
provide critical short-term support as the first of the month
approaches. My Administration will continue working with the housing
community and federal government to develop long-term solutions to this
crisis.”
Governor
Murphy’s executive order waives provisions of statutory law that
prohibit the use of security deposits for rental payments, enabling
tenants to instruct landlords to use their security deposits to offset
rent or back rent. Tenants will not be obligated to make any further
security deposit relating to their current lease agreement but would
still be responsible for any monies landlords expend that would have
been reimbursable via the security deposit as outlined in the original
contract (i.e. damage to the property). However, should the tenant and
landlord extend or renew their lease, then the tenant would be obligated
to replenish the security deposit in full either six months following
the end of the Public Health Emergency established by Executive Order
No. 103 (2020), or on the date on which the current lease agreement is
extended or renewed, whichever is later.
The order will take effect immediately and will be in place until 60 days after the public health emergency is terminated.
Governor
Murphy also announced that the Department of Community Affairs has
established a rental housing information page and question portal as a
single point of reference for tenants and landlords seeking information
about their rights during the public health emergency.
In
addition, a standing information page has been added to the State’s
COVID-19 website for homeowners interested in taking advantage of the
previously announced mortgage forbearance agreement with private
lenders. Homeowners with questions or concerns related to conditions of
an agreement with their mortgage lender will be directed to the
Department of Banking and Insurance’s intake form for further
assistance.
A copy of Executive Order No. 128 can be found here.
The rental housing information page and question form can be found at: https://covid19.nj.gov/forms/
For more information on COVID-19-related mortgage forbearance, please visit covid19.nj.gov and search “Get Assistance.”
