On April 24, 2020 (the “Effective Date”), Governor Murphy signed Executive Order #128 (the “Order”) which allows residential tenants to apply their security deposits toward rent obligations.
The following are some of the key points of the Order:
- Pursuant to the Order, tenants may apply their security deposits, and interest earned on the security deposits, towards rent payments that are due during the Public Health Emergency and for 60 days thereafter.
- The Order applies specifically to residential tenants – it does not apply to commercial tenants. In addition, it is limited to where the security deposit is subject to N.J.S.A. 46:8-19 et seq. For example, it is limited to where the Landlord has at least 10 rental units.
- The tenant would not be obligated to replenish the security deposit under his/her current lease. However, in the case of an extension or renewal of the Lease, tenant would be required to replenish the security deposit upon the later of: (i) the renewal of the lease, and (ii) six months following the end of the Public Health Emergency.
- The Order is in effect until two (2) months following the end of the Public Health Emergency, unless revoked earlier by the Governor.
If you have any questions regarding the executive order, you can reach the BMK real estate team via our main office phone, (973) 376-0909, using the extensions below or accessing the mobile telephone numbers and email addresses provided:
Office Extension: 1120
Mobile: (973) 568-7559
Office Extension: 1121
Mobile: (917) 514-8043
Office Extension: 1119
Mobile: (917) 716-9302
A copy of Executive Order 128 can be found at: https://nj.gov/infobank/eo/056murphy/pdf/EO-128.pdf
This article is for informational purposes only and is not intended to constitute, and does not constitute, legal advice.