1 In 5 New Jerseyans At Risk Of Eviction, Foreclosure: Report

NEW JERSEY — As New Jersey's coronavirus crisis wanes, a new issue looms. One in five people in the Garden State risk losing their homes through eviction or foreclosure, according to a new report from QuoteWizard.

According to the report, 13.1 percent of New Jerseyans stand at high risk of eviction, while 7.1 percent risk foreclosure. An additional 8.3 percent are behind on mortgage payments.

“We have rising housing costs, prolonged unemployment and stagnant income and when you combine those three things people are really worried about not being able to afford to keep a roof over their heads,” said Nick VinZant, a senior research analyst for QuoteWizard.

State of the Moratorium

Gov. Phil Murphy issued an executive order in March 2020, which states that residents cannot be removed from their properties via eviction or foreclosure during the the public-health state of emergency. The moratoriums will remain in place until two months after the end of the public health emergency.

Murphy has extended New Jersey's state of emergency each month since the pandemic began. But the governor announced he would not renew it after his most recent 30-day expansion, which he approved Friday, expired. As it stands, that would mean the eviction moratorium would end in about three months.

But the end of the moratorium hasn't been finalized, according to a spokesperson for Murphy.

"The Governor’s office is coordinating with Legislative leadership on legislation that will determine which provisions and protocols put in place under the COVID-19 Public Health Emergency will remain in effect after that emergency ends," Alyana Alfaro told Patch via email. "Details will be forthcoming."

At the moment, the national moratorium remains in flux. The Centers for Disease Control previously extended its eviction moratorium to June 30. Landlords and realtor groups challenged the CDC's policy in court.

A federal judge determined May 6 that eviction moratoriums don't fall under the CDC's purview. The U.S. Justice Department quickly announced it would appeal the ruling, and the judge left the national moratorium in place while both sides file arguments.

The judge's decision doesn't impact state or local ordinances preventing evictions or foreclosures.

Looming Eviction Issues

QuoteWizard — a tool for navigating insurance and cost of living — based its findings on the CDC's Household Plus Surveys. The available data measures payment status for housing, residents' confidence in making the next month's payment, and the occupants' likelihood to leave their homes in two months because of eviction.

The company found that nearly 25 percent of people nationwide worry about foreclosure or eviction in the coming months. According to the data, 7.1 percent of New Jersey residents face foreclosure — the 10th highest rate in the nation.

Public-health agencies, such as the CDC, have argued that evicting tenants amid a pandemic isn't safe. But pandemic restrictions also exacerbated economic issues in New Jersey and throughout.

New Jersey's unemployment rate peaked at 16.4 percent in April 2020 after averaging 3.4 percent in 2019, according to the U.S. Bureau of Labor Statistics. The state's unemployment rate totaled 7.7 percent last March.

The state also faces a legal challenge from a group of landlords in Gloucester and Cumberland counties. They argue that the state's mandates, especially tenants' option to take money out of their security deposits for rent, are "unconstitutional." All five landlords represented own one or two residential properties each.

What Residents Can Do

New Jerseyans behind on payments have some options. The state opened the COVID-19 Emergency Rental Assistance Program Phase II program March 22 to applicants.

The program provides temporary assistance to low- and moderate-income households whose income substantially decreased, people who have qualified for unemployment benefits and those who have incurred significant costs because of the pandemic. Click here to apply.

People facing eviction or foreclosure should immediately contact a housing counselor online or call 1-800-NJ-HOUSE.

Murphy's executive order in April 2020 allowed tenants to use their security deposits to cover rent during the COVID-19 crisis. Find more programs that may help here through the Division of Housing and Community Resources.

But QuoteWizard doesn't see the issue of finding affordable housing improving for renters or buyers anytime soon. According to the report, President Joe Biden's campaign promise of a $640 billion housing plan may not be enough.

"An increase in unemployment benefits, stimulus checks and a moratorium on evictions kept many people in their homes during the height of the COVID-19 pandemic, but those programs appear to be winding down," the report says. "President Joe Biden has proposed a $640 billion plan to address a shortage in affordable housing, but the question is, will that be enough?"

Read the full report here.

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