5. Rental Agreements
There have been several laws introduced related to rent increases and suspensions. However, at this time they have not been enacted. There is also a law introduced to receive relief for those businesses who have interruption insurance. I recommend for those who do apply, and receive a rejection letter.
- S2362/A3921: Authorizes Governor to permit emergency rent suspension for certain small business tenants during COVID-19 pandemic.
The bill authorizes the Governor to issue executive order allowing rent suspension of up to 3 months for distressed small business tenants. The rent would be repaid over 6 to 9 months, commencing the 2nd month after the end of the emergency declaration. The legislation passed both houses on April 13, 2020. It has not yet been approved by Governor Murphy.
- S2341: Authorizes Governor to restrict rent increases on certain commercial tenants during emergency circumstances.
The bill enables the Governor to prohibit a commercial rent increase greater than twice the rate of inflation as indicated by increases in the consumer price index for the immediately preceding nine-month period. The legislation passed the Senate on April 13, 2020 and was referred to the Assembly Housing Committee.
- A3844: Concerns business interruption insurance during coronavirus disease 2019 state of emergency.
The resolution indemnifies the insured of businesses with less than 100 eligible full-time employees for any loss of business or business interruption for the duration of a declared State of Emergency. The insurer may apply to the Commissioner of Banking and Insurance for relief and reimbursement of such claims. The Emergency Resolution was introduced and passed by the Assembly on March 16, 2020. So far, it has not moved further in the legislative process.
