New Jersey State Assembly and Senate passed legislation in late June that will end the eviction moratorium at the end of August with some caveats.  Below are the main points of the bill that landlords and managers need to know.

• End of the eviction moratorium
• The NJ eviction moratorium will end on August 31, 2021 for all tenants making above 80% of AMI (Average Median Income). 
• Those families who are below 80% of AMI who attest (1) their income, (2) COVID-19 impact, and (3) apply for rental assistance would get protections from evictions through December 31, 2021. While rent is due for September through December, they cannot be evicted for nonpayment of rent during those months.

• Rent owed is converted to civil debt
• Any rent due and owing from March 1, 2020 through August 31, 2021 would be turned into civil debt.  That is, while a landlord can get a money judgement for rent accrued during that period, that debt cannot be the basis for an eviction.
• This provision alone helps the state avoid what could have been an “eviction tsunami” when the moratorium is lifted.   

• Credit Protections
• Landlords would not be allowed to send negative information to the credit reporting agencies or other landlords for any debt accrued during March 1, 2020 – August 31, 2021

• Tenant eviction records
• A landlord cannot use tenant records based on the nonpayment or habitual late payment of rent that occurred during March 1, 2020 – August 31, 2021

• Creates the Eviction Prevention Program and provides $750 million, $500 million for rental assistance and $250 million for utility assistance

This legislation is the first step in getting back to normal and the legislature is starting at the top of the income scale.  If you are a landlord with high income tenants you can begin your normal operations beginning September 1, 2021.  If you have medium to low income tenants you should be applying for all the assistance available because things won't get back to normal until January 1, 2022.