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Bill

A 5198

Facilitates changes to certain terms of State or federal tenant-based housing subsidy due to increase in household members, emergency conditions, and financial barriers faced by head-of-household.

2026-2027 Regular Session

Streamlines and expedites adjustments to tenant-based subsidies for changes in household size, emergencies, or financial barriers to maintain safe, affordable housing.

Introduced, Referred to Assembly Housing Committee
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Bill Summary · A 5198

Bill Overview

A5198 (Assembly) from the 222nd New Jersey Legislature, introduced June 4, 2026 by Assemblyman Kenyatta Stewart (District 35), seeks to facilitate adjustments to certain terms of State or federal tenant-based housing subsidies in response to changes in household size, emergency conditions, and financial barriers faced by the head-of-household. The bill amends existing law on the State rental assistance program and adds new procedures to streamline eligibility, reassignment, and relocation in specific circumstances.

Main Purpose and Intent

  • Provide a streamlined framework for households receiving tenant-based subsidies (including State subsidies and federal Section 8 Housing Choice Voucher Program) to adjust subsidy terms when needed due to:
    • Increase in household members
    • Emergency circumstances
    • Financial barriers experienced by the head-of-household
  • Reduce barriers to maintaining safe, affordable housing by enabling faster adjustments, reassignment of head-of-household status within the same household, and expedited relocations when urgency exists.

Key Provisions and Changes

  1. Definitions and scope

    • Defines key terms: Commissioner (of Community Affairs), Department, housing authority, State or federal tenant-based housing subsidy, subsidy holder, and verified increase in household members (e.g., birth/adoption, guardianship, return of a family member, etc.).

  2. Application process to adjust subsidy amount or unit size

    • Establishes an application process, in coordination with housing authorities, to adjust:
      • Subsidy value
      • Allowed housing unit size
    • Requires documentation of new household member and residency verification.
    • Department must prioritize requests that prevent overcrowding.

  3. Expedited reassignment of head-of-household designation

    • Permits expedited reassignment within the same household when emergencies or financial barriers threaten safe housing.
    • Criteria for approval include: emergency circumstance or financial barrier (e.g., poor credit history, prior rental debt), eligibility of the new head-of-household, ability to meet landlord screening standards, and verification of new household member (with possible hardship waivers).
    • Allows continued eligibility and rental assistance during relocation or lease execution, without reapplying.

  4. Prohibition on credit inquiries for non-head-of-household household members

    • When a subsidy holder is seeking housing, landlords may not run credit inquiries on members other than the head-of-household.
    • Violations incur penalties (summary proceeding; minimum $1,000 for initial violation; minimum $2,000 for each subsequent violation within a year).

  5. Expedited relocation in emergencies

    • Authorizes expedited relocation when emergency conditions threaten health or safety (e.g., domestic violence, fire or disaster, unsafe housing).
    • Relocation can occur while preserving existing eligibility and rental assistance during the move and lease execution.

  6. Federal Section 8 considerations

    • Allows the Commissioner to refrain from strict adherence to certain provisions to comply with federal law, with rulemaking to guide authorities.

  7. State rental assistance program (P.L.2004, c.140) amendments

    • Revisions to align with the new authorities, including reserving funds for seniors, veterans, homeownership and self-sufficiency programs, and related supports, and ensuring compatibility with the new subsidy adjustment provisions.

Who and What Is Affected

  • Subsidy holders (low- to moderate-income households) receiving State or federal tenant-based subsidies.
  • Heads-of-household and potential substitutes within the same household.
  • Landlords involved with subsidy-holder tenants.
  • State Department of Community Affairs and local housing authorities administering subsidies.
  • Veterans, seniors, and households pursuing related support programs under the State rental assistance framework.

Procedural and Timeline Aspects

  • Requires the Commissioner to adopt rules and regulations to implement the bill within four months after enactment.
  • Establishes formal application processes for subsidy adjustments, head-of-household reassignment, and expedited relocations.
  • Takes effect on the first day of the fourth month after enactment, with potential anticipatory action allowed for implementation.

This bill aims to reduce delays and barriers in maintaining housing stability for subsidized households facing life changes or emergencies, while preserving program integrity and compliance with federal requirements.

Compiled from official sources — confirm details with the bill’s official record.

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