The New Jersey Department of Community Affairs (DCA) implemented a policy change that will affect landlords and tenants participating in the Housing Choice Voucher (HCV) and State Rental Assistance Program (S-RAP). The attorneys at Goldstein LePore LLC are available to answer any questions regarding this change.
Here’s what you need to know:
- Beginning October 1, 2025, the DCA will no longer approve annual rent increases for HCV and S-RAP participants.
- The freeze applies indefinitely, regardless of market conditions, costs, or other circumstances.
- The DCA has begun sending formal notices to property owners advising them of this policy.
If the DCA denies a request for a rent increase on your property because of this freeze, you may be able to take the following steps:
- Termination of the Housing Assistance Payment (HAP) contract, upon 60 days’ notice to the agency and to the tenant. Once the HAP contract is terminated, the DCA must advise the tenant to relocate to a participating unit, or the tenant can choose to remain in the apartment without the voucher by paying the full amount of rent charged.
- Eviction, if the tenant remains in the apartment without paying the full rent, provided the rent increase was properly served, the HAP contract was properly terminated and there is no agreement to extend the termination date.
Here’s what you should be aware of:
- Prior to taking any legal action, owners should continue to act reasonably and cooperate with the resident.
- Keep in mind that based upon the federal regulations, owners are prohibited from accepting the difference in rent directly from the tenant.
- Under no circumstance should an owner refuse to accept a Section 8 voucher because of the rent freeze. The voucher is typically provided for one year; therefore, subsequent rent increases are not an issue when the voucher is first accepted.
We are hopeful that a funding solution will be proposed, and this issue will be resolved. If you requested an increase which was denied because of the freeze and would like to discuss your next steps, please contact us.
This information is provided solely for information purposes. It should not be construed as legal advice on any specific matter and is not intended to create an attorney-client relationship. The information provided herein may not be applicable to all situations and should not be acted upon without specific legal advice based upon particular circumstances. Each legal matter is unique, and prior results do not guarantee a similar outcome.