Articles Tagged with Tenancy

While the CARES Act imposes an eviction moratorium on landlords of “covered properties” the Act is not without relief to landlords. Landlords/borrowers with “federally backed mortgage loans” or  “federally backed multi-family mortgage loans” are entitled to monthly mortgage payment forbearance for up to 90 days.

Section 4022 (1-4 family mortgage loans) and Section  4023 (5+ family mortgage loans)  of the CARES Act provide some relief to multi-family borrowers. To qualify,  a borrower/landlord must fall into any of the below categories:

  1. Borrowers with “Federally Backed Mortgage Loan” meaning, a 1-4 family property with mortgage bought by Fannie/Freddie (above) or involving FHA, VA or other related federal agency. This is the overwhelming majority of 1-4 family mortgage loans. Or;

On September 9, 2019, changes to Union City Municipal Code §329-32 “Security Funds” became effective. These changes expand the power of the City to require landlords (of buildings with four units or more) to make repairs or improvements to a property with “security funds.” The “security funds” are mandatory transfers of money from a landlord to Union City ostensibly to abate “emergency conditions.” Landlords in Union City, NJ should be aware of the “emergency conditions” which trigger the “security funds” requirement. Today’s requirements are far more expansive than prior law.

329-33 “Depositing of Funds” of the Union City Municipal Code allows the City to require that a landlord deposit money (the amount is based on building size) with the City for the “repair, maintenance, supply or replacement” of “items” “necessary to correct, eliminate or alleviate an emergency condition.” Before September 9, 2019, “emergency conditions” were limited to:

(a) lack of adequate ventilation or light;

Oral residential tenancies in New Jersey are an invitation to chaos. A prior post explained the basic terms of an oral tenancy. Those terms are the amount of the rent and the size of the space. Equally important is the identity of the tenant and the landlord’s right to know who occupies its property. Often, a landlord will purchase a multi-family building and find unauthorized occupants in apartments presumably rented to a named tenant. Without a written lease defining the tenants, the question is: Who is the tenant in the apartment and what rights (if any) do they have?
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New Jersey residential tenancies exist in two forms. Those with a written lease and those without. Written leases are more desirable for the simple (and obvious reason) that the terms of the tenancy are defined. Oral tenancies generally lack defined terms (unless implied from conduct). This vagueness is problematic. Whether a landlord purchases a building with an existing oral tenancy or creates one, the problems remain the same. The central question is: How does one define the terms of an oral tenancy?
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