LEGISLATIVE FISCAL ESTIMATE

ASSEMBLY COMMITTEE SUBSTITUTE FOR

ASSEMBLY, Nos. 3282 and 4964

STATE OF NEW JERSEY

221st LEGISLATURE

 

DATED: MAY 23, 2025

 

 

SUMMARY

 

Synopsis:

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

Type of Impact:

Annual State revenue and expenditure increases.

Agencies Affected:

Department of Community Affairs.

 

Office of Legislative Services Estimate

Fiscal Impact

 Annual

 

State Revenue Increase

Indeterminate

 

State Expenditure Increase

Indeterminate

 

 

 

 

·       The Office of Legislative Services (OLS) concludes that the bill would result in indeterminate annual State revenue and expenditure increases.

·       The revenue increase would stem from a $75 fee charged to certain landlords for filing an eviction action.

·       Pursuant to the bill, the Department of Community Affairs would utilize the revenue collections from this new fee for the purposes of eviction and homelessness prevention services.

 

BILL DESCRIPTION

 

      This bill would revise the Homelessness Prevention Program and require a new charge for filing an eviction action.

      The bill establishes criteria for eligibility for the Homelessness Prevention Program for both renters and mortgagees, including guidance concerning prioritization in the event that available funding is insufficient to provide assistance to all eligible applicants.  The bill provides that assistance for an applicant with a mortgage would be in the form of a loan, secured by a recorded mortgage, and establishes certain requirements and limitations for the loan.

      The bill would also establish an additional $75 fee on eviction actions filed in the State, to be paid by a landlord filing an eviction action who leases more than three dwelling units, or more than four dwelling units if the structure is owner occupied.  Under current law, the fees required to file for eviction is $50.  The bill requires the Office of Eviction Prevention in the Department of Community Affairs to use the monies received pursuant to the bill for the purposes of eviction prevention services that the office directs and designs.  The bill also excludes the fee imposed on an eviction filing from the expenses which a landlord may be entitled to recover in certain circumstances.

      The bill requires the department to adopt rules and regulations to effectuate the provisions of the bill.

 

 

FISCAL ANALYSIS

 

EXECUTIVE BRANCH

 

      None received.

 

OFFICE OF LEGISLATIVE SERVICES

 

      The OLS concludes that the bill would result in indeterminate annual State revenue and expenditure increases.

      The revenue increase would stem from a $75 fee charged to certain landlords for filing an eviction action.  The OLS estimates that up to 114,000 eviction filings are made annually, based on data from the Administrative Office of the Courts.  However, the $75 fee would only be charged to landlords who lease more than three dwelling units, or more than four dwelling units if the structure is owner-occupied.  The OLS does not have information to estimate how many landlords filing an eviction action would be charged the new fee and how many would be exempt.

      Pursuant to the bill, the Department of Community Affairs would utilize the revenue collections from this new fee for the purposes of eviction and homelessness prevention services.

 

 

Section:

Local Government

Analyst:

Grace Ahlin

Assistant Fiscal Analyst

Approved:

Thomas Koenig

Legislative Budget and Finance Officer

 

 

This legislative fiscal estimate has been produced by the Office of Legislative Services due to the failure of the Executive Branch to respond to our request for a fiscal note.

 

This fiscal estimate has been prepared pursuant to P.L.1980, c.67 (C.52:13B-6 et seq.).