LEGISLATIVE FISCAL ESTIMATE

[Second Reprint]

ASSEMBLY, No. 3481

STATE OF NEW JERSEY

222nd LEGISLATURE

 

DATED: JULY 1, 2026

 

 

SUMMARY

 

Synopsis:

Revises “Homelessness Prevention Program”; requires new charge for filing eviction action.

Type of Impact:

Annual State revenue and expenditure increases; potential local expenditure increase.

Agencies Affected:

Department of Community Affairs; local agencies that rent dwelling units.

 

 

Office of Legislative Services Estimate

Fiscal Impact

Annual

 

State Revenue Increase

Indeterminate

 

State Expenditure Increase

Indeterminate

 

Potential Local Expenditure Increase

Indeterminate

 

 

·         The Office of Legislative Services (OLS) concludes that the bill’s $75 fee charged for filing an eviction action would result in a State revenue increase that is indeterminate, but likely in the millions of dollars annually.

·         There would also be an annual State expenditure increase, as the Department of Community Affairs is to utilize the revenue collections from this new fee for the purposes of eviction, foreclosure, and homelessness prevention services.

·         The OLS notes that, to the extent a local housing agency owns and operates applicable rented dwelling units, the local agency would incur the $75 charge each time it files an eviction action.

 

BILL DESCRIPTION

 

      This bill makes various revisions to the existing Homelessness Prevention Program and establishes an additional fee of $75 to be collected for the filing of an eviction action by landlords who lease more than three dwelling units, or more than four dwelling units if the structure is owner-occupied.   The bill requires the Office of Eviction Prevention in the Department of Community Affairs to use the funds received from the new fee for the purposes of eviction, foreclosure, and homelessness prevention services.  The bill prohibits a landlord subject to the fee from charging the fee to a tenant. 

 

 

FISCAL ANALYSIS

 

EXECUTIVE BRANCH

 

      None received.

 

JUDICIAL BRANCH

 

      At the request of the OLS, the Judiciary provided the following data on eviction filings Statewide:

 

Calendar Year

Number of Eviction Filings

2023

108,269

2024

115,401

2025

110,972

 

OFFICE OF LEGISLATIVE SERVICES

 

      The OLS concludes that the bill’s $75 fee charged for filing an eviction action would result in a State revenue increase that is indeterminate, but likely in the millions of dollars annually.  Based on data from the Administrative of the Courts shown above, there was an average of 111,547 eviction filings Statewide over the last three completed calendar years.  For illustrative purposes only, the OLS notes that the $75 fee would result in more than $8 million in annual State revenues if it were collected from each landlord filing an eviction action.  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.  Additionally, the OLS notes that the number of eviction filings fluctuates annually and can be impacted by macroeconomic factors, policy changes, and other considerations.

      The OLS finds there would also be an annual State expenditure increase, as the Department of Community Affairs is to utilize the revenue collections from this new fee for the purposes of eviction, foreclosure, and homelessness prevention services.

      The OLS notes that, to the extent a local housing agency owns and operates applicable rented dwelling units, the local agency would incur the $75 charge each time it files an eviction action.  The OLS cannot estimate how many applicable units owned by local agencies would be the subject of an eviction action.  Therefore, the potential local expenditure increase is indeterminate.

 

Section:

Local Government

Analyst:

Grace Ahlin
Associate 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.).