New Jersey Catholic Conference

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State Funded Rental Assistance Program

Fact Sheet

Why It Is Needed:

More than half of New Jersey’s 230,000 very low-income renter households (those with incomes of less than 25,000/year for a family of four) pay more than half their income for rent, leaving little to cover other necessary living expenses.

A New Jersey worker must earn $19.74 per hour — nearly four times the minimum wage of $5.15 — to afford rent for a two-bedroom apartment at the average market rate, according to the National Low Income Housing Coalition. A minimum wage worker would have to work 153 hours per week, and earn $41,000/year, to afford this. Wages for full-time workers in many occupations in New Jersey -- including home health aides, preschool teachers and paramedics – are much lower than $41,000.

Currently, thousands of households are on waiting lists for federal Section 8 vouchers; many have been waiting for years in hopes of receiving a voucher. Not only is the situation not improving for these people, but the president’s recently introduced budget will make things worse by allocating $1.6 billion less than last year for Section 8. This proposal would drop about 7,500 New Jersey households currently relying on vouchers to help pay their rent.

While NJ funds the production of several thousand “affordable housing” units each year, few if any of these units are affordable to very low income families. To even keep pace with the current situation, let alone help more families bridge the housing affordability gap, NJ needs to create a rental assistance program.

Bills Introduced:

A2122, sponsored by Assemblyman Reed Gusciora; A2271, sponsored by Assemblymen Gordon Johnson and Anthony Chiappone; and S357, sponsored by Senator Shirley Turner, would create a $50 million rental assistance program with a one-time appropriation.

A2476, introduced by Assembly Speaker Albio Sires and Assemblywoman Bonnie Watson Coleman, S1415, sponsored by Senator Shirley Turner, would appropriate $10 million from Housing & Mortgage Finance Agency reserves for such a program.

Potential Ongoing Sources of Funding:

While these proposals represent an important first step, it is critical to identify a dedicated, ongoing funding source for the program so rental assistance won’t be at risk in annual budget battles. The Office of Legislative Services is currently investigating several potential funding sources, ranging from set-asides of current affordable housing dollars to modest new fees or surcharges.

It is estimated that every $1 million in rental assistance would help an average of 140 families per year. This is based on the amount needed for a family of four at the poverty level of $17,000 afford a two bedroom apartment at fair market rent, while paying no more than 30% of their income for rent as per federal standard.

This information is provided by the Housing and Community Development Network of New Jersey

Representing the Archdiocese of Newark, Diocese of Camden, Diocese of Metuchen,

Diocese of Paterson, Diocese of Trenton, Byzantine Catholic Eparchy of Passaic and

Our Lady of Deliverance Syriac Catholic Diocese