New Jersey S 515: Establishes "Security Deposit Assistance Pilot Program" in Passaic, Union, Essex, Hudson, Gloucester, Atlantic, Burlington, Camden, and Mercer counties; appropriates $450,000.*

Bill Text

[First Reprint]
SENATE, No. 515

STATE OF NEW JERSEY
220th LEGISLATURE

PRE-FILED FOR INTRODUCTION IN THE 2022 SESSION

Sponsored by:
Senator NILSA I. CRUZ-PEREZ
District 5 (Camden and Gloucester)
Senator NELLIE POU
District 35 (Bergen and Passaic)

SYNOPSIS
Establishes “Security Deposit Assistance Pilot Program” in Passaic, Union,
Essex, Hudson, Gloucester, Atlantic, Burlington, Camden, and Mercer
counties; appropriates $450,000.

CURRENT VERSION OF TEXT
As reported by the Senate Community and Urban Affairs Committee on
June 2, 2022, with amendments.

S515 [1R] CRUZ-PEREZ, POU
2

EXPLANATION – Matter enclosed in bold-faced brackets [thus] in the above bill is
not enacted and is intended to be omitted in the law.

Matter underlined thus is new matter.
Matter enclosed in superscript numerals has been adopted as follows:
1Senate SCU committee amendments adopted June 2, 2022.
AN ACT establishing the “Security Deposit Assistance Pilot 1
Program,” supplementing P.L.1967, c.265 (C.46:8-19 et seq.), 2
and making an appropriation. 3
4
BE IT ENACTED by the Senate and General Assembly of the State 5
of New Jersey: 6
7
1. a. As used in this section: 8
“Commissioner” means the Commissioner of Community 9
Affairs. 10
“Fund” means the “security deposit assistance fund,” established 11
pursuant to subsection e. of this section. 12
“Pilot program” means the “Security Deposit Assistance Pilot 13
Program,” established under subsection b. of this section. 14
b. The “Security Deposit Assistance Pilot Program” is 15
established in Passaic, Union, Essex, Hudson,
1Gloucester, Atlantic, 16
Burlington,
1 Camden, and
1[Gloucester] Mercer
1 counties in order 17
to assist low-income households in addressing the need to pay a 18
security deposit prior to entering into a residential lease. The 19
commissioner shall operate the pilot program in Passaic, Union, 20
Essex, Hudson,
1Gloucester, Atlantic, Burlington,
1 Camden, and 21
1[Gloucester] Mercer
1 counties for a minimum of three years. The 22
commissioner shall commence operation of the pilot program by 23
beginning to accept applications on the first day of the sixth month 24
next following enactment of P.L. , c. (C. ) (pending before 25
the Legislature as this bill). The commissioner shall notify an 26
applicant of the approval or denial of their application within two 27
weeks after the commissioner receives the application. Upon 28
approval of an application, the commissioner shall issue a letter of 29
security deposit commitment to the approved household, allowing 30
the household to enter into a lease under the parameters of the pilot 31
program at any time within six months of the household’s receipt of 32
the letter. Upon entrance into a lease, the tenant shall immediately 33
notify the commissioner that a lease agreement has been executed, 34
and the tenant shall offer the letter of security deposit commitment 35
to the landlord in lieu of a full security deposit payment. Any 36
refusal by a landlord to lease a residence to a household because of 37
the household’s participation in the pilot program shall constitute a 38
violation of section 11 of the "Law Against Discrimination," 39
P.L.1945, c.169 (C.10:5-12). 40
c. In addition to any other reasonable restrictions on eligibility 41
adopted by the commissioner, the pilot program shall only be open 42
to a household with an income level low enough to qualify for “very 43
low income housing,” as defined under subsection m. of section 4 44

S515 [1R] CRUZ-PEREZ, POU
3

of the “Fair Housing Act,” P.L.1985, c.222 (C.52:27D-304). 1
Security deposit assistance may only be applied to a lease in which 2
the monthly rent does not exceed 40 percent of the maximum 3
eligible monthly income necessary for a household of the same size 4
within the same housing region to qualify for very low income 5
housing. A household approved for the pilot program shall be 6
responsible for the payment of one-twelfth of its security deposit as 7
an added payment due each month, for the initial 12 months of the 8
lease. 9
d. If the tenant violates the lease any time prior to the 10
landlord’s receipt of the full security deposit payment from the 11
tenant, then, upon application from the landlord, the commissioner 12
shall reimburse the landlord through the fund for the amount owed 13
from the tenant. However, this amount shall not exceed the portion 14
of the security deposit not yet paid by the tenant, and shall not 15
exceed the actual amount of damages the landlord is entitled to 16
collect from the security deposit as a result of the tenant’s particular 17
violation. Following a payment to the landlord from the fund, an 18
amount equal to the amount paid from the fund shall subsequently 19
be owed by the tenant to the commissioner, to be reinvested in the 20
fund upon payment. The commissioner may prohibit a tenant who 21
has violated a lease while under the pilot program from entering 22
into another lease under the parameters of the pilot program