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By Steven Rodas
Families stuck in limbo for more than three years after the remnants of Hurricane Ida washed out New Jersey — forcing many to abandon homes and wrack up debt as they kept paying mortgage bills — are breathing a sigh of relief.
Gov. Phil Murphy on Wednesday signed a new bill, which will provide mortgage relief and one year of foreclosure forbearance for qualifying New Jersey families.
Wednesday’s news came about a month after the Democratic governor opens in a new windowconditionally vetoed a different bill designed to provide similar relief. At the time, Murphy’s administration said it worried the proposed bill would have been liable to abuse or potentially open to legal challenge in the future.
“I am beyond grateful that this bill finally passed after three years, three votes, and three revisions. Right now I am already five months behind on my rent and mortgage,” said Colleen Kane, a Lambertville Ida survivor and member of the New Jersey Organizing Project, which advocated for the programs.
“The mortgage forbearance bill will allow me to catch up on my payments and give me some breathing room where I’ll only have to work to come up with my rent, not rent plus mortgage,” she added. “It is my hope that this will allow me to afford some of the high costs of repairing my home so my family can live there again.”
One family impacted by floods said it opens in a new windowwas forced to move into an RV post-Ida, while many others said payments have continued to mount since 2021 — even as another hurricane season would bring new concerns.
The new bill will require servicers to hit pause on mortgage payment obligations.
“The Department of Community Affairs will now be tasked with creating an online portal for forbearance eligibility applications within the next 90 days, after which survivors will have 30 days to apply,” the New Jersey Organizing Project said Thursday morning.
A draft of proposed changes to the bill vetoed by the governor appeared to specifically define “storm-impacted homeowner” as a person who was participating in the state’s Homeowner Assistance and Recovery Program or Mitigation Assistance Program.
That, according to climate advocates and families, would have “drastically” reduced the number of people able to get funds.
The latest legislation defines “storm-impacted homeowners” as someone who holds a mortgage at a primary residence and — as a result of damage there from Ida — is taking part in the Homeowner Assistance and Recovery Program, or applied to HARP but was rejected only because HARP criteria excludes homes located in designated flood-hazard areas or floodways.
The provisions were fought for by people like Leanna Jones, a single mother of two who applied for Blue Acres post-Ida after she was told her home was in a “floodway” and did not qualify for Homeowner Assistance and Recovery Program funds.
“Mortgage forbearance will help my kids and I tremendously,” Jones said Thursday. “Having a temporary break from paying our monthly mortgage bill will ease much of the financial and emotional strain I’ve been under since Ida flooded our home.”
It’s unclear how many families are seeking relief from mortgage bills and a one-year forbearance after Ida but state organizers said dozens have rallied for the state aid and many families, by now, simply moved out of New Jersey.
State Assemblywoman Yvonne Lopez, D-Middlesex, and state Sen. Troy Singleton, D-Burlington were among the lawmakers leading the latest efforts on legislative action.
Democratic officials on Wednesday evening said the now-enacted bill, S-3670, allows storm-impacted homeowners to apply to the Department of Community Affairs to obtain a Certification of Eligibility for Forbearance.
“The Department will 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 New Jersey Senate Democrats summarized in a statement.
Sen. Angela McKnight (District -31) said those still suffering today from Ida, through this law, will get a “lifeline to financially recover” and avoid homelessness.
“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,” Singleton said Wednesday.
Democratic leaders said the law will also allow “storm-impacted homeowners” — who are facing foreclosure —to get a stay of those proceedings if a court allows.
While Wednesday’s development was a positive sign, environmentalists in the state continue to argue that mortgage relief and a pause on foreclosures should be two resources New Jerseyans receive regardless of the storm.
After opens in a new windowboth Hurricane Sandy, and now Ida, families have said they’ve had to rally for the relief. Groups implore they will be needed as climate change fuels stronger natural disasters and makes for more frequent and precarious storm aftermath.