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A 4815

Requires certain data in reports by the commissioner of the office of temporary and disability assistance "for the COVID-19 Emergency Rental Assistance Program of 2021"

2025 Regular Session Introduced by Kwani O'Pharrow

Authorizes water/sewer/stormwater authorities to provide income-based rate reductions for eligible low-income residential customers and flexible repayment options with safeguards.

REFERRED TO HOUSING
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Bill Summary · A 4815

Summary — A4815

Title: Requires certain data in reports by the commissioner of the office of temporary and disability assistance "for the COVID-19 Emergency Rental Assistance Program of 2021"
Bill Number: A4815
Sponsor: Asm. Kwani O'Pharrow
Status: Introduced 9/19/2024; reported with committee amendments 12/9/2024; referred to Assembly State & Local Government Committee (12/9/2024); later referred to Housing (2/6/2025).
Companion: S286 (1R). Prior-session bills: A10630, A2772.

Note: Committee amendments (12/9/24) substantially redrafted and expanded the bill’s focus to authorize low‑income reductions and payment arrangements for water, sewer, and stormwater charges and made technical edits (removed an appropriation, clarified application to municipalities, updated title/synopsis).

Purpose / Intent

Allow certain local water, sewerage, and stormwater service providers (county or municipal sewerage authorities, municipal authorities, and local units) to offer reduced periodic rents, rates, fees, or other charges for qualifying low‑income residential customers, and to provide flexible repayment options for delinquent accounts — subject to fiscal safeguards and oversight.

Key provisions

  • Eligibility and reductions

    • Authorities may annually adopt rates/schedules that reduce periodic charges for residential owners/tenants who live in the dwelling unit and whose household income is at or below a percentage of the federal poverty guidelines (threshold set by the authority but not to exceed the Department of Community Affairs’ maximum for the Low Income Household Water Assistance Program or, if absent, LIHEAP).
    • Restrictions: household cannot be entirely students claimed as dependents; non-household members must not pay on behalf of the applicant; applicants may not already receive another authority-offered reduction/abatement.
    • Definitions: “dwelling unit” and “household income” are defined in statute.

  • Administration and documentation

    • Authorities must adopt eligibility procedures, advertise the program in customer bills or periodic mailings, and require at minimum documentation of identity, income, household composition, and ownership/tenancy.
    • Annual application deadline must be set no later than 60 days before the close of the fiscal year unless alternative funding approval is obtained.

  • Fiscal safeguards and approvals

    • Authorities may only implement reductions if they determine they have sufficient unrestricted net position to offset projected revenue losses.
    • Alternatively, an authority may seek approval from the Director of the Division of Local Government Services to fund reductions from its enterprise fund. Director approval requires a rate study showing the reduction will not (1) cause an unreasonable increase in average residential rates/rents/fees, or (2) leave the authority without sufficient funds to maintain infrastructure.
    • The Local Finance Board must adopt procedures for rate studies needed to support such approvals.

  • Rate adjustments and caps

    • Regional sewerage authorities may, with Local Finance Board approval, increase charges beyond a statutory 2% cap to offset revenue impacts of low‑income reductions.

  • Delinquent account repayment options

    • Authorities and local units may enter into installment agreements allowing full payment of delinquent balances (plus interest/penalties) in equal monthly installments for up to 5 years.
    • Agreements may be modified for residential customers who demonstrate significant financial changes beyond their control (temporary reduction of monthly installments, extension of duration up to five years from original agreement, or both).
    • One additional installment agreement may be authorized for charges that became delinquent during a public health emergency or state of emergency, under conditions described in the bill.

Who is affected

  • Directly: low‑income residential water/sewer/stormwater customers in districts served by participating county/municipal authorities and municipal utilities; customers with delinquent balances.
  • Indirectly: other ratepayers (potential for modest rate increases if revenue is shifted); local authorities and municipal budgets; Local Finance Board and Division of Local Government Services (oversight, approval, and rate‑study processes).

Procedural / timeline aspects

  • Introduced 9/19/2024; committee-amended and reported 12/9/2024; referred to additional committees, most recently Housing (2/6/2025).
  • Authorities setting a reduction must set annual application deadlines at least 60 days before the fiscal year close unless they obtain Director approval to use enterprise funds (which requires a rate study per P.L.2021, c.184).

Potential impacts

  • Provides a statutory mechanism for targeted relief for low‑income households to reduce water/sewer/stormwater burden.
  • Balances relief with fiscal safeguards to protect system integrity; may shift revenue recovery via modest rate adjustments (subject to oversight).
  • Establishes more flexible payment options to reduce disconnections or long‑term delinquencies, particularly following emergencies.

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

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