NEW JERSEY APARTMENT ASSOCIATION STATEMENT ON A-4226 (TIMBERLAKE)

(MONROE TOWNSHIP, NJ) – The New Jersey Apartment Association (NJAA) testified in opposition to A-4226 (Timberlake) which impairs and rewrites existing lease agreements, and forces landlords to enter into multiyear payment arrangements for past due rent with no assistance or support for the property owner.  While this legislation seems like a temporary remedy for tenants, it will create long-term financial hardships for homeowners and landlords, and unfortunately, will create the biggest property tax shift in New Jersey’s history.

NJAA Executive Director David Brogan said, “I think every landlord in the state can agree that we do not want to see mass evictions at the end of this crisis; however, A-4226 in its current form is not the solution to this problem.” Brogan went on to say that this legislation will have unintended consequences. “By severely reducing rent revenue for apartments, Assemblywoman Timberlake’s bill will create the biggest property tax shift onto homeowners that the State of New Jersey has ever seen.”

Even without A-4226, New Jersey residents can expect massive tax increases to make up for lost revenue and increased expenses due to COVID-19. “Given that everyone is struggling, the last thing the state needs right now is an additional property tax increase that could have been avoided,” said Brogan.  “A-4226 in its current form is a punitive, one-sided approach that will bankrupt small landlords, severely impact large landlords and unfortunately lead to higher taxes on homeowners.”

The NJAA is willing to work with the Legislature to come up with solutions or amendments to A-4226 that equitably tackle the problems facing New Jersey renters and landlords due to COVID-19. We welcome a dialogue where the voices of all parties are heard, and work is done in collaboration with the industry that is most impacted by the bill.

The New Jersey Apartment Association (NJAA) is the premier trade association representing all facets of the multifamily housing industry, including market rate and affordable housing owners, managers and developers, as well as suppliers. NJAA’s membership owns and manages over 220,000 apartments, providing quality housing to over one million New Jerseyans. 

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