A report by the consulting firm Stout for a coalition of New Jersey advocacy groups holds that over 40% of renter households in New will be unable to afford rent for August due to the coronavirus pandemic financial crisis.
The percentage of residents affected represents about some 450,000 households across the state. African-American communities are suffering a disproportionate impact from the outbreak. The report found that nearly half of African-American renters will be unable to pay rent next month.
The firm’s findings are based on analysis of data recently released by the U.S. Census Bureau and it was reported by WHYY.org.
“It’s not just an issue of individuals being homeless and individuals being displaced,” said James Williams, the director of racial justice policy at Fair Share Housing Center, “but the actual financial impact to local economies, to municipalities, and to the state as a whole is a lot larger than some are predicting.”
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The authors estimated that the unpaid rent from the last few months of the pandemic was about $687 million and suggested the total economic impact of housing instability and a surge in evictions could reach into the billions of dollars.
Gov. Phil Murphy instituted a ban on removing renters who are evicted during the COVID-19 pandemic, a policy that will remain in effect until two months after New Jersey’s public health emergency ends.
The state opened a $100 million rental assistance program that will provide up to six months of financial aid to households chosen through a lottery system. Residents can also use their security deposits to pay rent.
However, Williams said that only a significant rent tolerance plan , that is, one without high interest rates and fees, could save leave hundreds of thousands of residents from the danger of eviction and financial ruin.
“We’re asking for a fair and reasonable repayment plan, recognizing that landlords and developers need their money. But you can’t draw blood from a stone,” he said.
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