Revises "Homelessness Prevention Program"; requires new charge for filing of eviction action.

A3481 2R

[Second Reprint]

ASSEMBLY, No. 3481

STATE OF NEW JERSEY

222nd LEGISLATURE

�

PRE-FILED FOR INTRODUCTION IN THE 2026 SESSION

Sponsored by:

Assemblywoman YVONNE LOPEZ

District 19 (Middlesex)

Assemblyman GABRIEL RODRIGUEZ

District 33 (Hudson)

Assemblyman WILLIAM F. MOEN, JR.

District 5 (Camden and Gloucester)

Assemblywoman SHAMA A. HAIDER

District 37 (Bergen)

Co-Sponsored by:

Assemblywoman Reynolds-Jackson, Assemblyman Danielsen,
Assemblywomen Brennan and Quijano

SYNOPSIS

���� Revises "Homelessness Prevention Program";
requires new charge for filing of eviction action.

CURRENT VERSION OF TEXT

���� As reported by the Assembly Appropriations Committee
on June 23, 2026, with amendments.

��

An Act

concerning homelessness prevention, amending and supplementing P.L.1984, c.180,
supplementing chapter 27D of Title 52 of the Revised Statutes, and amending
P.L.2013, c.206 and P.L.2014, c.31.

����
Be It Enacted

by the Senate and General Assembly of the State of New Jersey:

���� 1.��� Section 1 of P.L.1984,
c.180 (C.52:27D-280) is amended to read as follows:

���� 1.��� This act shall be known
and may be cited as the
"Homelessness Prevention Program Act" or
the
"Prevention of Homelessness Act (1984)
.
"
[
.
]

(cf: P.L.1984, c.180, s.1)

���� 2.��� (New section)� As used
in sections 2 and 3 of P.L. , c. (C. and ) (pending
before the Legislature as this bill):

���� "Commissioner" means
the Commissioner of Community Affairs.

���� "Department" means
the Department of Community Affairs.

���� "Program" means the
Homeless Prevention Program, established pursuant to the "Homelessness
Prevention Program Act," P.L.1984, c.180 (C.52:27D-280 et seq.).

���� 3.��� (New section)� a.� An
applicant shall not be eligible to receive assistance under the Homelessness
Prevention Program, established pursuant to the "Homelessness Prevention
Program Act," P.L.1984, c.180 (C.52:27D-280 et seq.), unless the applicant
is a New Jersey resident, and either homeless or in imminent danger of
homelessness as a result of:

���� (1)�� an eviction action
pursuant to subsections a., f., i., or j. of section 2 of P.L.1974, c.49
(C.2A:18-61.1), which is in any respect related to an inability to pay the rent
or proposed rent;

���� (2)�� a mortgage foreclosure;
or

���� (3)�� an inability to pay rent
or mortgage payments that is likely to cause an imminent foreclosure or
eviction action, as determined by the Department of Community Affairs.

���� b.��� An applicant shall be
deemed to be in imminent danger of homelessness if:

���� (1)�� for an applicant who is
a renter:

���� (a)�� the applicant is unable
to make rental payments sufficient to meet monthly rental obligations; and

���� (b)�� either:

���� (i)��� the applicant�s
inability to pay rent is likely to cause an imminent eviction action, as
determined by the department; or

���� (ii)�� the applicant has been
served with a summons and complaint for an eviction, pursuant to subsections
a., f., i., or j. of section 2 of P.L.1974, c.49 (C.2A:18-61.1), which is in
any respect related to an inability to pay the rent or proposed rent, which is
not more than 12 months old and bears a docket number and court date;
2
[
and
]

or
2

���� (c)�� the applicant:

���� (i)��� is subject to a
judgment for possession, which has entered for the applicant�s residence within
the past six months, for which the warrant for removal has not yet been
executed;

���� (ii)�� has entered into a
settlement agreement with the landlord within the past 60 days that requires
the tenant to vacate their residence within 120 days of the date of the
settlement; or

���� (iii)� has entered into a
settlement agreement with the landlord within the past 60 days that requires
the tenant to pay an amount of arrears to retain their tenancy which the tenant
is currently unable to pay; or

���� (2)�� for an applicant who is
a mortgagor, the applicant is unable to make mortgage payments, the applicant
has been served with a notice of sheriff�s sale, which is scheduled to take
place within 30 days of the date of application for homelessness prevention assistance.

���� c.���� No applicant shall be
eligible for assistance if the applicant:

���� (1)�� has an annual household
income, as of the date of the application, that exceeds 80 percent of the area
median income for households of the same size within the housing region;

���� (2)�� has not exhausted all
other available financial resources, according to criteria established by the
department;

���� (3)�� has concealed or
transferred assets to become eligible for assistance;

���� (4)�� has a delinquent loan
with the program, or has caused the program to forfeit a security deposit,
unless the department finds that the delinquency or forfeiture was due to a
cause that was either beyond the control of the applicant receiving assistance,
or constituted a violation of the rights of that applicant by another person,
and that the cause of the delinquency or forfeiture is not likely to recur; or

���� (5)�� is renting from a family
member, including: a spouse, parent, child, grandparent, grandchild, sister,
brother, aunt, uncle, cousin, niece, nephew, mother-in-law, father-in-law,
sister- in- law, and brother-in-law, except that the provisions of this paragraph
limiting eligibility for the program, by virtue of the relationship to the
applicant, shall not apply to a family member that is permanently disabled.

���� d.��� Assistance to any
applicant under the program facing foreclosure as a result of mortgage or
property tax arrearages shall be in the form of a loan, which shall be secured
by a recorded mortgage.�

���� (1)�� No applicant shall be
eligible for a mortgage loan:

���� (a)�� unless the home, which
may be an attached or detached house or a condominium unit, is an
owner-occupied, single family dwelling that shall have been owned and occupied
by the applicant for at least one year prior to falling into arrears on the
mortgage loan or property taxes;

���� (b)�� if the applicant is
subject to an initiated or ongoing bankruptcy proceeding; or

���� (c)�� if the property is
encumbered by more than one mortgage, except that a tax title lien pursuant to
the "tax sale law," R.S.54:5-1 et seq., or the In Rem Tax Foreclosure
Act (1948), P.L.1948, c.96 (C.54:5-104.29 et seq.), shall not constitute a "mortgage"
for the purposes of this subparagraph.

���� (2)�� The total amount of any
mortgage loan to an applicant under the program shall not exceed an amount
equal to 600 percent of the monthly applicable "payment standard" for
the family size, as determined in accordance with guidelines published annually
by the United States Department of Housing and Urban Development.

���� e.���� If an applicant is
found eligible for assistance, but does not receive assistance due to a lack of
program funds, the program shall give first consideration to those applicants
most vulnerable in the event of homelessness.� The program shall assign priorities
for consideration for assistance among otherwise qualified applicants in the
same applicant pool in an order to be established by the department at least
annually using their most recent available data regarding demographic of people
at risk of homelessness due to eviction, which shall include but not limited
to:

���� (1)�� households with a person
who is found to be disabled or handicapped by a government agency physician or
other health professional at time of application;

���� (2)�� households with a person
who is at least 62 years of age;

���� (3)�� victims of domestic
violence, provided a referral from the Department of Children and Families, an
emergency shelter agency, a county welfare agency, or other social agency is
required;

���� (4)�� households with
children, which have endured separation or face imminent separation due to
homelessness, provided a recommendation from the Department of Children and
Families, emergency shelter agency, county welfare agency, or other social
agency is required;

���� (5)�� households with a
history of homelessness; and

���� (6)�� other households as
determined by the department.

���� f.���� An applicant�s rank or
presence in paragraphs (1) through
2
[
(7)
]

(6)
2
of
subsection
2
[
f.
]

e.
2
of this
section shall not alone entitle an applicant to assistance; however, among
equal applicants who meet the same criteria pursuant to paragraphs (1) through
2
[
(7)
]

(6)
2
of
subsection
2
[
f.
]

e.
2
of this
section, preference shall be given to households residing in sustainable
housing.

���� g.��� Funds distributed
pursuant to the program shall be distributed so that applicants in all regions
of the State have equal access to assistance.

���� h.��� The Commissioner of
Community Affairs shall, in accordance with the "Administrative Procedure
Act," P.L.1968, c.410 (C.52:14B-1 et seq.), adopt rules and regulations as
necessary to implement the provisions of sections 1 through 3 of P.L.��� , c.���
(C.������� through������� ) (pending before the Legislature as this bill).�

���� 4.� (New section)� The
Legislature finds and declares that:

���� a����� Research indicates that
the expense of filing an eviction action has a substantial impact on the
likelihood of a landlord to make this filing and initiate the process of
forcing a tenant out of their home;

���� b.��� When eviction filing
fees are low, a landlord is able to, in effect, use the court to help in the
collection of rent, as the threat of being removed from a home is an effective
means of compelling a tenant to pay;

���� c.���� Low eviction filing
fees disincentivize landlords from communicating with tenants over rent
payments that have passed their due dates, to consider possible payment plans
and alternatives to eviction;

���� d.��� Even when an eviction
filing does not result in the actual removal of the tenant, the record of the
filing may nonetheless be attached to the tenant, making it more difficult for
the tenant to obtain housing in future years;

���� e.���� The average eviction
filing fee in the United States is $109, substantially higher than the filing
fee of $50 required by courts in New Jersey; and

���� f.���� Therefore, it is in the
public interest to establish a new charge for the filing of an eviction action,
and to apply the monies received through this charge for the purposes of
eviction and homelessness prevention services.�

���� 5.��� (New section)� a.� As
used in this section:

���� "Commissioner" means
the Commissioner of Community Affairs.

���� "Office of Eviction
Prevention" or "office" means the office established pursuant to
section 5 of P.L.2021, c.188 (C.52:27D-287.11).

���� "Resource navigator"
means an experienced caseworker employed or contracted by the Office of
Eviction Prevention to assist households facing an eviction action in accessing
homelessness prevention services, relocation and rapid rehousing assistance,
social service support, and rental assistance resources.� The Office of
Eviction Prevention shall require a resource navigator to have functions and
responsibilities comparable to those established under the "Rental
Assistance Navigation Program" established pursuant to section 2 of
P.L.2021, c.313, as continued or reestablished pursuant to subsection b. of
this section.

���� b.��� (1)� In addition to the
existing fees established pursuant to section 14 of P.L.1991, c.177
(C.22A:2-37.1), the Rules of Court, and any other rule, regulation, or law, and
notwithstanding subsection b. of section 12 of P.L.2014, c.31 (C.2B:1-7), an
amount of $75 shall be collected for the filing of an eviction action, and
shall be transferred to the Office of Eviction Prevention.� The office shall
use the monies received pursuant to this section for the purposes of eviction
prevention services the office directs and designs, including but not limited
to, the employment or contracting of resource navigators through the Rental
Assistance Navigation Program, as established by the Department of Community
Affairs pursuant to section 2 of P.L.2021, c.313, which the department shall
continue or reestablish as a permanent program as of the effective date of
P.L.��� , c.��� (C.������� ) (pending before the Legislature as this bill),
which services shall include homelessness prevention services, relocation and
rapid rehousing assistance, social services support, rental assistance
resources, and connection to legal services.�

���� (2)�� Notwithstanding the
provisions of any residential lease agreement to the contrary, the
responsibility to pay the fee required pursuant to this section shall not be
shifted to the tenant, and shall not constitute "additional rent,"
regardless of the outcome of an action filed pursuant to N.J.S.2A:18-53 et seq.
or section 2 of P.L.1974, c.49 (C.2A:18-61.1).�
1
Fees collected pursuant
to this section shall not be charged to or payable by a tenant or former tenant
under any circumstance.� Fees collected pursuant to this section shall not be
considered a cost or "additional rent" subject to be paid by the
tenant under the provisions of section 1 of P.L.2019, c.316 (C.2A:42-10.16a),
section 1 of P.L.2013, c.206 (C.2A:18-61.66), N.J.S.2A:18-55, N.J.S.2A:42-9, or
any other law, rule, or regulation.
1

���� (3)�� The provisions of
paragraph (1) of this subsection shall not apply to a landlord, owner, or other
person who leases or rents, or offers to lease or rent, three or less units of
dwelling space, or four or less units of dwelling space for owner-occupied structures
that serve as the owner�s principal residence, which units of dwelling space
are occupied or are intended to be occupied, by three or more persons who live
independently of each other.

���� c.���� Notwithstanding the
provisions of the "Administrative Procedure Act," P.L.1968, c.410
(C.52:14B-1 et seq.) to the contrary, the commissioner may adopt, immediately,
upon filing with the Office of Administrative Law, rules and regulations to implement
the provisions of sections 4 and 5 of P.L.��� , c.���
(C. and )
(pending before the Legislature as this bill), which shall be effective for a
period not to exceed one year following the effective date of sections 4 and 5
of P.L.��� , c.��� (C. and )
(pending before the Legislature as this bill).� The commissioner shall
thereafter amend, adopt, or readopt the rules and regulations in accordance
with the "Administrative Procedure Act," P.L.1968, c.410 (C.52:14B-1
et seq.).

���� 6.��� Section 1 of P.L.2013,
c.206 (C.2A:18-61.66) is amended to read as follows:

���� 1.��� If a residential lease
agreement provides that the landlord is or may be entitled to recover either
attorney's fees or expenses, or both, incurred as a result of the failure of
the tenant to perform any covenant or agreement in the lease, or if the lease
provides that such costs may be recovered as additional rent, the court shall
read an additional parallel implied covenant into the lease.� This implied
covenant shall require the landlord to pay the tenant either the reasonable
attorney's fees or the reasonable expenses, or both, incurred by that tenant as
the result of the tenant's successful defense of any action or summary
proceeding commenced by the landlord against the tenant, arising out of an
alleged failure of the tenant to perform any covenant or agreement in the
lease, or as the result of any successful action or summary proceeding
commenced by the tenant against the landlord, arising out of the failure of the
landlord to perform any covenant or agreement in the lease.

���� The court shall order the
landlord to pay such attorney's fees or expenses, or both, that are actually
and reasonably incurred by a tenant who is the successful party in such actions
or proceedings to the same extent the landlord is entitled to recover attorney's
fees and expenses, or both, as provided in the lease.� The court shall have
discretion with respect to awards of attorney's fees or expenses, or both, for
tenants to the same degree as it has with respect to awards of attorney's fees
or expenses, or both, for landlords as provided under the lease either
explicitly or implicitly.� An order based on this implied covenant shall
require the landlord to pay the tenant such costs either as money damages or a
credit against future rent, as determined by the tenant.� Any waiver of this
section shall be void as against public policy.

���� Notwithstanding the foregoing,
in an action or summary proceeding for non-payment of rent a tenant who pays
all rent currently due and owing on or after the filing of the complaint but
prior to entry of a final judgment, and whom the court finds presented no
meritorious defense to the complaint other than said payment, shall not be
deemed to have successfully defended against the action or summary proceeding
for the purposes of the award of attorney's fees or expenses, or both.

���� As used in
[
this act
]

P.L.2013,
c.206 (C.2A:18-61.66 et seq.),
"expenses" shall include expenses
directly related to the litigation including, but not limited to
[
,
]

:

court costs
, except as provided in this section,
and expenses for
witnesses.� "Expenses" shall not include personal expenses for travel

[
,
]

;

reimbursement for missed work time
[
,
or
]

;
reimbursement for
child care
; or the fee required for the filing of an
eviction action pursuant to subsection b. of section 5 of P.L.��� , c.���
(C.������� ) (pending before the Legislature as this bill)
.

(cf: P.L.2013, c.206, s.1)

���� 7.��� Section 12 of P.L.2014,
c.31 (C.2B:1-7) is amended to read as follows:

���� 12.� a.� The Supreme Court,
subject to the limitations set forth in subsection b. of this section, may
adopt Rules of Court to revise or supplement filing fees and other statutory
fees payable to the court for the sole purpose of funding:

���� (1)�� the development,
maintenance and administration of a Statewide Pretrial Services Program;

���� (2)�� the development,
maintenance and administration of a Statewide digital e-court information
system; and

���� (3)�� the provision to the
poor of legal assistance in civil matters by Legal Services of New Jersey and
its affiliates.

���� b.��� All existing filing fees
and other statutory fees payable to the court on the effective date of this
section
, except as provided in subsection b. of section 5 of P.L.��� , c.���
(C.������� ) (pending before the Legislature as this bill),
shall not be
increased or supplemented more than $50 in the aggregate for each fee beginning
on the effective date of this section.

���� c.���� As used in sections 12
through 19 of P.L.2014, c.31 (C.2B:1-7 through C.2B:1-13):

���� "Digital e-court
information system" shall mean a Statewide integrated system that includes
but is not limited to electronic filing, electronic service of process,
electronic document management, electronic case management, electronic
financial management, and public access to digital court records; and

���� "Pretrial Services
Program" shall mean the pretrial services program established pursuant to
section 11 of P.L.2014, c.31 (C.2A:162-25).

(cf: P.L.2014, c.31, s.12)

���� 8.��� This act shall take
effect on the first day of the fourth month next following the date of
enactment, except that the Commissioner of Community Affairs shall take
anticipatory action necessary to effectuate the provisions of this act.