S3842

An Act concerning clinical programs to provide legal services for certain tenants in need of housing assistance, supplementing P.L.1996, c.52 (C.22A:2-51 et al.), and making an appropriation.

Be It Enacted by the Senate and General Assembly of the State of New Jersey:

1. The Legislature finds and declares that:

a. The lack of affordable housing in New Jersey forces low- and moderate-income households to spend a disproportionate share of their income toward rental payments, which dynamic has resulted in an eviction crisis throughout the State.

b. The COVID-19 pandemic has heightened existing economic disparities and exacerbated the economic insecurity of many low- and moderate-income households, thereby worsening the State’s eviction crisis to a critical level.

c. During the COVID-19 pandemic, a Statewide moratorium on evictions was put in place pursuant to Executive Order No. 106 and P.L.2020, c.1 (C.2A:18-59.3); however, this moratorium will soon expire, placing many low- and moderate-income households at risk of eviction.

d. It is estimated that as many as 300,000 rental households in New Jersey will become subject to an eviction proceeding after the eviction moratorium ends, which would be double the average annual number of proceedings filed before the pandemic.

e. These evictions are expected to disproportionately impact Black and Latino residents of New Jersey, as these communities account for a large percentage of the State’s rental population.

f. Additionally, many landlords have increasingly filed legal actions against tenants to seek monetary relief rather than eviction, thereby putting low- and moderate-income tenants at risk of damaged credit ratings and further economic hardship.

g. The State and federal governments have established rental assistance programs to assist low- and moderate-income tenants who have been adversely affected by the COVID-19 pandemic, which programs include the COVID-19 Emergency Rental Assistance Program administered by the Department of Community Affairs.

h. However, these novel State and federal programs may be complex, making it difficult for some tenants to apply for and receive all of the benefits to which they are entitled under these programs.

i. Although these rental assistance programs may provide tenants with the means to pay some or all of their rental obligations, many tenants may still lack the ability needed to effectively negotiate with their landlords toward solutions that avert further legal proceedings.

j. Furthermore, when governmental assistance cannot prevent the filing of an eviction proceeding, the vast majority of tenants cannot afford to hire an attorney; in contrast, most landlords are represented by an attorney during these proceedings, given that many landlords are corporations, which are required to have counsel.

k. Consequently, the provision of free legal services to low- and moderate-income tenants who are in need of housing assistance, including those who are at risk of eviction and those who are entitled to governmental rental assistance, is one of the most effective ways to address the ongoing eviction crisis.

l. It is therefore in the public interest and a valid public purpose for the Legislature to appropriate monies to the Seton Hall Law School, Rutgers Camden Law School, and Rutgers Newark Law School to establish clinical programs that provide free legal services to low- and moderate-income tenants who are in need of housing assistance.

2. a. The Legislature shall annually appropriate monies for the Seton Hall Law School, Rutgers Camden Law School, and Rutgers Newark Law School to establish clinical programs that provide free legal services to low- and moderate-income tenants who are in need of housing assistance. The clinical programs shall be implemented according to guidance issued by the Seton Hall Law School, subject to the limitations of this section.

b. (1) The clinical program shall include, but not be limited to, the provision of the following services, free of charge, to low- and moderate-income tenants:

(a) legal counsel and representation in landlord-tenant-related litigation, including, but not limited to, eviction proceedings and actions for unpaid rent;

(b) assistance applying for benefits under any State or federally funded rental assistance program, or any other program providing financial assistance to tenants impacted by the COVID-19 pandemic;

(d) any additional services that the Seton Hall Law School may deem appropriate.

(2) The clinical program shall assist low- and moderate-income tenants residing throughout the State; provided, however, that the clinical program shall prioritize qualifying tenants who are in need of housing assistance as a result of the COVID-19 pandemic. The clinical program may partner with legal services organizations to conduct tenant outreach.

(3) The Seton Hall Law School may designate one or more legal services organizations through which a law school may implement the clinical program, provided that the legal services organization shall have experience providing free legal services to low- and moderate-income tenants who are in need of housing assistance.

(4) The clinical program may include pro bono components in which one or more services may be provided by volunteer students who do not receive course credit for participating in the program.

c. (1) If a law school elects to implement the clinical program, the law school shall designate a licensed attorney in good standing, with experience in landlord-tenant law and civil litigation matters, to supervise the clinical program. The law school may hire such administrative staff as may be needed to support the program. The law school may also hire one or more licensed attorneys in good standing, with experience in landlord-tenant law and civil litigation matters, to support the operations of the clinical program.

(2) If a law school elects to implement the clinical program through a designated legal services organization, then subject to the availability of funds, the law school shall provide subgrants to the legal services organization to defray the costs of the program. When implementing the clinical program, the designated legal services organization shall allow all students selected by the law school to participate in the program.

d. Before the clinical program may commence operations, the law school may submit an appropriate application, as required under the Rules of Court, in order to become a certified clinical program under those rules. Alternatively, the law school may provide some or all services through an existing clinical program, which has already been certified under the Rules of Court. In either circumstance, the clinical program shall comply with all requirements of the Rules of Court concerning the implementation of a clinical program and the representation of litigants by law students.

e. After the first year of operations, and each year thereafter, the Seton Hall Law School shall submit a report to the Governor and to the Legislature, pursuant to section 2 of P.L.1991, c.164 (C.52:14-19.1), detailing the operations of each clinical program established pursuant to this section. At a minimum, the report shall indicate the number of tenants who received assistance through each clinical program and the service provided to each tenant. The Rutgers Camden Law School and Rutgers Newark Law School shall provide Seton Hall Law School with any information necessary to complete the report.

f. Nothing in this section shall be construed as requiring the Seton Hall Law School, Rutgers Camden Law School, or Rutgers Newark Law School to establish or implement the clinical program.

3. a. (1) There is appropriated $575,000 from the General Fund to the Department of the Treasury for allocation to the Seton Hall Law School to support a clinical program established pursuant to section 2 of P.L. , c. (C. ) (pending before the Legislature as this bill).

(2) There is appropriated $275,000 from the General Fund to the Department of the Treasury for allocation to the Seton Hall Law School to support the preparation of training materials and the training of students, in collaboration with Rutgers Camden Law School and Rutgers Newark Law School, selected to participate in a clinical program established pursuant to section 2 of P.L. , c. (C. ) (pending before the Legislature as this bill).

(3) There is appropriated $575,000 from the General Fund to the Department of the State for allocation to the Rutgers Camden Law School to support a clinical program established pursuant to section 2 of P.L. , c. (C. ) (pending before the Legislature as this bill).

(4) There is appropriated $575,000 from the General Fund to the Department of the State for allocation to the Rutgers Newark Law School to support a clinical program established pursuant to section 2 of P.L. , c. (C. ) (pending before the Legislature as this bill).

b. If the Seton Hall Law School, Rutgers Camden Law School, or Rutgers Newark Law School does not establish a clinical program pursuant to section 2 of P.L. , c. (C. ) (pending before the Legislature as this bill), then the amounts hereinabove appropriated for the law school shall be transferred to the other participating law schools in equal amounts.

c. The unexpended balance of any amount appropriated pursuant to this section shall be appropriated for the same purpose during the succeeding fiscal year.

4. This act shall take effect immediately.

STATEMENT

This bill provides funding for the establishment of clinical programs that provide free legal services to low- and moderate-income tenants who are in need of housing assistance.

Under the bill, the Legislature is directed to annually appropriate monies for the Seton Hall Law School, Rutgers Camden Law School, and Rutgers Newark Law School to establish the clinical programs. The bill requires each clinical program to be implemented according to guidance issued by the Seton Hall Law School, subject to the limitations of the bill.

Specifically, the clinical program would provide the following services, free of charge, to low- and moderate-income tenants: (1) legal counsel and representation in landlord-tenant-related litigation, including, but not limited to, eviction proceedings and actions for unpaid rent; (2) assistance applying for benefits under any State or federally funded rental assistance program, or any other program providing financial assistance to tenants impacted by the COVID-19 pandemic; (3) legal counsel and assistance related to pre- and post-litigation negotiations with landlords; and (4) any other service that the Seton Hall Law School may deem appropriate.

The bill provides that the clinical programs may assist low- and moderate-income tenants residing throughout the State. However, each program would be required to prioritize qualifying tenants who are in need of housing assistance as a result of the COVID-19 pandemic.

If a law school elects to implement the clinical program, the school would be required to designate a licensed attorney in good standing, with experience in landlord-tenant law and civil litigation matters, to supervise the program. Thereafter, the bill permits the law school to hire such additional staff as may be needed to support the program, including one or more licensed attorneys with experience in landlord-tenant law and civil litigation matters.

Additionally, the bill allows the Seton Hall Law School to designate one or more legal services organizations through which the clinical programs may be implemented. If a law school elects to implement the program through a designated legal services organization, then subject to the availability of funds, the law school would be required to provide subgrants to the organization to defray the costs of the program. However, when implementing the clinical program, the legal services organization would be required to allow all students selected by the law school to participate in the program.

Under the bill, the Seton Hall Law School would be required to submit an annual report to the Governor and the Legislature detailing the operations of the clinical program established pursuant to the bill. At a minimum, this report would indicate the number of tenants who received assistance through each clinical program and the service provided to each tenant.

The bill also appropriates a total of $2 million from the General Fund to support the operations of the clinical program. The Seton Hall Law School, Rutgers Camden Law School, and Rutgers Newark Law School will each receive $575,000. The remaining $275,000 is appropriated to the Seton Hall Law School to support the preparation of training materials and the training of law students selected to participate in the program. If either law school does not establish the clinical program, then the monies appropriated for that school would be transferred to the other participating schools in equal amounts.