Important Program Updates
April 17, 2020
Asset Management Bulletin 2020-2:
Suspension of Rent Increases for Agency-Financed Properties
Due to the current health concerns related to COVID-19, the vast majority of NJHMFA staff will be working remotely until further notice. Please contact Agency staff via their work email address. NJHMFA encourages all of our business partners and constituents to submit any and all documentation in an electronic format whenever possible as staff will continue to check email and review information submitted electronically.  
Pursuant to Section 6 of Executive Order 103 , executed by Governor Murphy on March 9, 2020, NJHMFA has suspended the NJHMFA rent increase rules at N.J.A.C. 5:80-9.4, 9.5, 9.8 through 9.11, 9.14 and 9.15. NJHMFA has determined that in light of the economic devastation caused by the COVID-19 pandemic, low and moderate income families in New Jersey are at tremendous risk of losing both employment and income. Such households will face challenges in paying rent, let alone absorbing a rent increase. As such, NJHMFA has obtained the approval of the Governor as well as unanimous consent of the NJHMFA Board to suspend the rent increase rules during the pendency of EO 103. The suspension is effective as of April 16, 2020.

Specifically, the following rent increase rules are suspended: N.J.A.C. 5:80-9.4*, 9.5, 9.8 through 9.11, 9.14 and 9.15. The suspension of rent increases will remain in place until such time as the COVID-19 emergency has ceased and Executive Order 103 has been terminated. Thereafter, the standard rent increase application process will resume, and properties in the Agency’s portfolio may apply for/implement rent increases in accordance with the Agency’s regulations at N.J.A.C. 5:80-9 et seq. 

As a point of clarification, the suspension of the rent increase rules does NOT apply to units funded solely through Low Income Housing Tax Credits or to Section 8 projects where rents are adjusted in accordance with a federal Housing Assistance Payment (HAP) contract. The suspension also does not apply to projects financed through the Agency’s Conduit Bond Program. 

While the suspension does not cover all affordable units, the NJHMFA encourages all property owners to refrain from instituting tenant rent increases during this pandemic to limit the financial burden on low and moderate income households. 

Should you have any questions with respect to this Bulletin, please contact your HMO via email to  AM@njhmfa.gov .

* As stated above, N.J.A.C. 5:80-9.4(b), which provides for the adjustment of rents at projects covered by a federal Housing Assistance Payments (HAP) contract, is not suspended. The suspension does, however, apply to Agency-financed Section 236 projects. 
New Jersey Housing and Mortgage Finance Agency | 609-278-7400 | NJHousing.gov