By Kelly Voicheck
Much has been written about the plight of tenants during this COVID-19 pandemic, but what seems to get lost in this discussion is how badly small landlords are hurting right now. For the most part, these folks are hardworking residents who have scraped together enough money for a down payment on a rental home with the hope that one day this investment would put their children through college, serve as their retirement fund, or supplement their income.
Now, due to the pandemic and the government’s inadequate response, these small landlords are watching that investment evaporate before their eyes. Instead of government doing something to help, property owners are being forced to comply with shortsighted government mandates that allow individuals to live rent-free with no consequences, leaving property owners scrambling for survival.
Advocates for the so-called “People’s Bill” have been characterizing this legislation as a panacea for tenants and claiming that corporate interests are halting progress. I would argue that the reason the bill hasn’t made it to the governor’s desk is because it’s terrible public policy. In the end, this piece of legislation temporarily helps tenants at the expense of landlords.
Assemblywoman Timberlake points to mortgage forbearance contained in the bill as the solution to all of the problems facing small landlords. But with an eviction moratorium in New Jersey that has no end in sight — how is that an adequate solution to this problem? Many property owners have already exhausted mortgage forbearance almost a year ago when their tenants stopped paying their rent. Moreover, landlords still must pay all of the other bills associated with operating and maintaining the building with no rental income or substantial rental assistance on the horizon.
And what about the taxman? Well, he wants his money, too!
Hardworking property owners are being saddled with an enormous property tax burden that government expects to be paid on time and in full, with no sympathy for what landlords are facing when tenants can’t or simply don’t want to pay their rent. Government isn’t telling property owners that they are waiving their tax obligation or relieving them of their burden due to the pandemic. Government still has its hand in the small landlord’s pocket, but this time, the landlord’s pocket is empty. And what happens when a landlord can’t pay their property taxes? Well, government threatens them with an 18% interest charge on top of what is owed and a lien on their property. Would the “People’s Bill” address this? Sadly, the answer is no.
Additionally, this legislation does nothing to address a poorly crafted statewide eviction moratorium imposed by Governor Phil Murphy, which provides no parameters for identifying tenants in need of help. This blanket policy treats low-income individuals struggling to pay their rent the same as someone who makes $150,000 and hasn’t lost their job.
In January, the Biden administration and the Centers for Disease Control and Prevention correctly implemented specific parameters for their eviction moratorium to target those truly in need. But that’s not the case in New Jersey. If the sponsors of the “People’s Bill” are so concerned with helping those in need — why aren’t they seeking to right these wrongs? Why aren’t they trying to help landlords in the same way they seek to help tenants?
Op-Eds by housing advocates tout the “People’s Bill” as the answer to a potential “eviction tsunami,” but they fail to acknowledge how this legislation shifts the burden without addressing the real problems we face. As small landlords, we are worried about an eviction tsunami, too. We are in the business of housing people and we want to continue to do that, but we don’t want to end up homeless ourselves.
Simply put, the sponsors of this bill and housing advocates should be focused on one thing and one thing only, getting rental assistance into the hands of those who need it quickly and efficiently. Broad-based rental assistance is the only true solution to help tenants and landlords weather this storm. Our focus should be joining hands and working together to make sure that tenants and landlords in need are given the tools they require to survive. If not, we will all end up in the same place, without a roof over our heads. And in the end, that helps no one.
Kelly Voicheck is the executive director of the Property Owners Association of New Jersey, Inc.
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The Link LonkFebruary 16, 2021 at 02:45AM
https://www.nj.com/opinion/2021/02/dont-forget-landlords-are-people-too-opinion.html
Don’t forget: Landlords are people, too | Opinion - NJ.com
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