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A1925
ASSEMBLY, No. 1925
STATE OF NEW JERSEY
222nd LEGISLATURE
�
PRE-FILED FOR INTRODUCTION IN THE 2026 SESSION
Sponsored by:
Assemblywoman ANNETTE QUIJANO
District 20 (Union)
Assemblywoman� MAUREEN ROWAN
District 2 (Atlantic)
Co-Sponsored by:
Assemblywoman Speight, Assemblymen Moen and Rodriguez
SYNOPSIS
���� Establishes "Security Deposit Assistance Pilot
Program" in Passaic, Union, Essex, Hudson, Gloucester, Atlantic, Camden,
and Mercer counties; appropriates $400,000.
CURRENT VERSION OF TEXT
���� Introduced Pending Technical Review by Legislative
Counsel.
��
An Act
establishing the �Security Deposit Assistance
Pilot Program,� supplementing P.L.1967, c.265 (C.46:8-19 et seq.), and making
an appropriation.
�
����
Be It
Enacted
by the Senate and General Assembly of
the State of New Jersey:
���� 1.��� a.� As used in this
section:
���� �Commissioner� means the
Commissioner of Community Affairs.
���� �Fund� means the �security
deposit assistance fund,� established pursuant to subsection e. of this
section.
���� �Pilot program� means the
�Security Deposit Assistance Pilot Program,� established under subsection b. of
this section.
���� b.��� The �Security Deposit
Assistance Pilot Program� is established in Passaic, Union, Essex, Hudson,
Gloucester, Atlantic,
Camden, and Mercer counties in order to assist
low-income households in addressing the need to pay a security deposit prior to
entering into a residential lease.� The commissioner shall operate the pilot
program in Passaic, Union, Essex, Hudson, Gloucester,
Atlantic, Camden,
and Mercer counties for a minimum of three years.� The commissioner shall
commence operation of the pilot program by beginning to accept applications on
the first day of the sixth month next following enactment of P.L.��� , c.���
(C.������ ) (pending before the Legislature as this bill).� The commissioner
shall notify an applicant of the approval or denial of their application within
two weeks after the commissioner receives the application.� Upon approval of an
application, the commissioner shall issue a letter of security deposit
commitment to the approved household, allowing the household to enter into a
lease under the parameters of the pilot program at any time within six months
of the household�s receipt of the letter.� Upon entrance into a lease, the
tenant shall immediately notify the commissioner that a lease agreement has
been executed, and the tenant shall offer the letter of security deposit
commitment to the landlord in lieu of a full security deposit payment.� Any
refusal by a landlord to lease a residence to a household because of the
household�s participation in the pilot program shall constitute a violation of
section 11 of the "Law Against Discrimination," P.L.1945, c.169
(C.10:5-12).
���� c.���� In addition to any
other reasonable restrictions on eligibility adopted by the commissioner, the
pilot program shall only be open to a household with an income level low enough
to qualify for �very low income housing,� as defined under subsection m. of section
4 of the �Fair Housing Act,� P.L.1985, c.222 (C.52:27D-304). Security deposit
assistance may only be applied to a lease in which the monthly rent does not
exceed 40 percent of the maximum eligible monthly income necessary for a
household of the same size within the same housing region to qualify for very
low income housing.� A household approved for the pilot program shall be
responsible for the payment of one-twelfth of its security deposit as an added
payment due each month, for the initial 12 months of the lease.�
���� d.��� If the tenant violates
the lease any time prior to the landlord�s receipt of the full security deposit
payment from the tenant, then, upon application from the landlord, the
commissioner shall reimburse the landlord through the fund for the amount owed
from the tenant.� However, this amount shall not exceed the portion of the
security deposit not yet paid by the tenant, and shall not exceed the actual
amount of damages the landlord is entitled to collect from the security deposit
as a result of the tenant�s particular violation.� Following a payment to the
landlord from the fund, an amount equal to the amount paid from the fund shall
subsequently be owed by the tenant to the commissioner, to be reinvested in the
fund upon payment.� The commissioner may prohibit a tenant who has violated a
lease while under the pilot program from entering into another lease under the
parameters of the pilot program for the following three years commencing on the
date the commissioner receives a reimbursement request from the landlord.�
���� e.���� There is established in
the General Fund a separate, non-lapsing, dedicated account to be administered
by the commissioner, and to be known as the �security deposit assistance fund,�
for the purpose of providing reimbursements to landlords for tenant lease
violations pursuant to subsection d. of this section.� The commissioner may
allocate up to $10,000 annually from the fund to pay for administrative
expenses.�
���� f.���� Pursuant to section 2
of P.L.1991, c.164 (C.52:14-19.1), the commissioner shall submit a report
evaluating the effectiveness of the pilot program to the Governor and the
Legislature on or before the first day of the thirty-sixth month next following
the beginning of the pilot program�s operation.� The report shall recommend
whether the pilot program should be continued in Passaic, Union, Essex, Hudson,
Gloucester, Atlantic, Camden, and Mercer counties, and if so, whether it should
also be expanded to other counties in this State.�
���� 2.��� There is appropriated $400,000
from the General Fund into the �security deposit assistance fund� to implement
the provisions of P.L.��� , c.��� (C.������� ) (pending before the Legislature
as this bill).
���� 3.��� This act shall take
effect immediately.�
STATEMENT
���� This bill establishes the
Security Deposit Assistance Pilot Program (�pilot program�) to assist certain
low-income households in the payment of rental security deposits.� The bill
also appropriates monies from the General Fund to support the pilot program.�
���� Under the pilot program, the
Commissioner of Community Affairs (�commissioner�) would provide insurance for
the security deposits of approved households. After entering into a residential
lease agreement, an approved household would be required to pay one-twelfth of
the security deposit as an added monthly payment.� If, prior to paying the full
balance of the security deposit, the household violated the lease agreement,
then the commissioner would be required to reimburse the amounts owed to the
landlord. �The reimbursement may not, however, exceed the portion of the
security deposit not yet paid by the tenant, or the actual amount of damages
that the landlord may collect from the security deposit.� Thereafter, the
household would be required to refund the commissioner in the amount of the
reimbursement.
���� The pilot program would
operate in Passaic, Union, Essex, Hudson, Gloucester, Atlantic, Camden, and
Mercer counties for a minimum of three years.� In addition to other eligibility
requirements established by the commissioner, the bill provides that only households
qualifying for �very low income housing,� as defined in the �Fair Housing Act,�
P.L.1985, c.222 (C.52:27D-304), would be eligible for the pilot program.
���� Under the bill, the
commissioner would provide each approved household with a letter of security
deposit commitment, which may be used by the household, within six months of
receipt, to enter into a lease agreement in lieu of a full security deposit
payment.� However, security deposit assistance would only be provided when the
monthly rent does not exceed 40 percent of the household�s monthly income.� Any
landlord who refuses rent to a household because of the household�s
participation in the pilot program would be deemed to violate the "Law
Against Discrimination," P.L.1945, c.169 (C.10:5-12).�
���� The bill also establishes the
�security deposit assistance fund� as a separate, non-lapsing, dedicated
account in the General Fund.� Under the bill, the security deposit
reimbursements provided by the commissioner to landlords would be payable from
the �security deposit assistance fund.�� The bill appropriates $400,000 from
the General Fund to the �security deposit assistance fund� to implement the
pilot program.�
���� Under the bill, the
commissioner would be required to submit a report to the Governor and the
Legislature, on or before the first day of the 36th month following the
commencement of the pilot program, to evaluate the effectiveness of the pilot
program.�