Singleton, McKnight Bill to Provide Mortgage Relief and Establish Foreclosure Protections for Victims of Hurricane Ida Clears Senate
TRENTON – Aiming to further assist homeowners who were negatively impacted by Hurricane Ida, the Senate approved legislation sponsored by Senators Troy Singleton and Angela McKnight that would establish mortgage relief and foreclosure protections for certain homeowners impacted by Hurricane Ida.
The advancement of this legislation is a continuation of previous efforts from Senator Singleton and the New Jersey Legislature to assist the victims of Hurricane Ida. Previous legislation unanimously passed by both the Senate and Assembly in June was conditionally vetoed by Governor Murphy in September.
“Despite the provision of federal aid, many families whose homes were damaged by Hurricane Ida remain financially burdened from the effects of the storm. Extreme flooding necessitated costly repairs, replacement of damaged possessions, and other financial challenges,” said Senator Singleton (D-Burlington). “This legislation has been crafted in consideration of the concerns expressed in the Governor’s conditional veto in September. I am hopeful the Governor will sign this compromise for the well-being of the victims of Hurricane Ida that are still struggling three years later.”
The bill, S-3670, would allow storm-impacted homeowners to apply to the Department of Community Affairs to obtain a Certification of Eligibility for Forbearance. The Department would review each application, and if the applicant meets eligibility criteria, award a Certification of Eligibility for Forbearance which would entitle the homeowner to obtain a one-year forbearance on their mortgage from their mortgage servicer.
The term “storm-impacted homeowner” would be defined as a person who holds a mortgage to a primary residence and, as a result of damage to that primary residence from Hurricane Ida, is participating in the Homeowner Assistance and Recovery Program (HARP) or applied to HARP but was rejected solely due to HARP criteria excluding homes located in designated flood-hazard areas or floodways. The term would also include those who have applied to and are pending an award from the Mitigation Assistance Program or those who are participating or have been invited to participate in the Blue Acres Community Development Block Disaster Recovery Program.
“Homeowners across the state suffered severe flooding and damage to their homes due to the remnants of Hurricane Ida, and many of them remain financially strained to this day,” said Senator McKnight (D-Hudson). “This compromise legislation, which I am hopeful the Governor will sign into law, will give them a lifeline to financially recover and prevent homelessness for families who may be in danger of foreclosure.”
Additionally, the legislation would permit storm-impacted homeowners in the midst of foreclosure proceedings to obtain, through a court and upon application by the homeowner demonstrating good cause, a stay in the foreclosure proceedings. The homeowner would have until the first day of the sixth month following the effective date of the bill to make this application, unless the courts in their discretion choose to extend this period. The length of the stay would conclude upon the earlier of one year following the award of the stay or January 1, 2026.
The Senate passed the bill in a unanimous vote.