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>> THIS WEEK ON "NJ BUSINESS BEAT" OPENING UP AND PUSHING FOR MORE.

PLUS LOOKING BACK ON A YEAR OF DEVASTATION.

THE UNIVERSITY DETAILS THE UNPRECEDENTED LOSSES FOR ATLANTIC CITY AND WHAT IT WILL TAKE TO BRING BUSINESS BACK.

A CRISIS UNLIKE ANY WE'VE SEEN.

WE'RE PUTTING EVICTIONS AND UTILITIES IN FOCUS, TALKING TO INDUSTRY LEADERS ABOUT THE TEST THE STATE CAN TAKE TO PROTECT TENANTS FROM LOSING THEIR HOME.

THAT'S STRAIGHT AHEAD ON "NJ BUSINESS BEAT."

>> THIS IS "NJ BUSINESS BEAT" WITH RHONDA SCHAFFNER.

>> HELLO, THANKS FOR JOINING US ON "NJ BUSINESS BEAT."

IF YOU'RE WATCHING ON YOUTUBE SUBSCRIBE TO YOUR YOUTUBE CHANNEL TO GET ALERTED WHEN WE POST NEW EPISODES AND CLIPS.

THIS IS A BIG WEEKEND FOR NEW JERSEY'S BUSINESSES NOW THAT INDOOR CAPACITY RESTRICTIONS HAVE BEEN EXPANDED.

BUT THERE IS STILL SOME DISCONTENT THAT THE REOPENING ISN'T MOVING FASTER.

THE NEW JERSEY BUSINESS COALITION HAD A VIRTUAL TOWN HALL THIS WEEK TO FIND OUT WHAT BUSINESS OWNERS AND LEADERS SEE AS THEIR BIGGEST CHALLENGES MORE THAN A YEAR INTO THE PANDEMIC.

REPRESENTATIVES FROM THE TOURISM, RESTAURANT AND CHILD CARE INDUSTRIES ALL SPOKE, INCLUDING GUY FALSARATO, THE FOUNDER AND CEO OF LIGHT BRIDGE ACADEMY.

>> WE'RE OPERATING UNDER RESTRICTIONS LIMITING OUR CAPACITY ANYWHERE FROM 25 TO 37% IN OUR EXISTING CHILD CARE CENTERS.

THE CHILD CARE INDUSTRY HAS GONE THROUGH A DEVASTAING PERIOD OPERATING AT LOSSES AND MANY CHILD CARE PROVIDERS HAVE GONE UNDER.

WE DON'T KNOW EXACTLY HOW MANY RIGHT NOW, BUT WE DO KNOW THAT QUITE A FEW HAVE NOT SURVIVED.

>> SOME SPEAKERS ALSO SAID NEW JERSEY'S DECISIONS ON REOPENING HAVE BEEN ARBITRARY.

IF THE STATE WANTS TO BOOST THE ECONOMY, IT NEEDS TO INVEST IN NEW JERSEY'S WORKFORCE, ACCORDING TO THE NEW JERSEY BUSINESS AND INDUSTRY ASSOCIATION.

THE NJBIA'S CHRISTOPHER EM-HOLTZ MADE THE CASE FOR THAT ON THIS WEEK'S COMMITTEE SPENDING HEARING WITH GOVERNOR MURPHY FOR THE NEXT YEAR.

YOUR TESTIMONY BEFORE THE SENATE BUDGET COMMITTEE, THERE WAS A PARTICULAR FOCUS YOU HAD, AND THAT WAS A REQUEST ON MAKING PRO-GROWTH INVESTMENTS.

THAT'S HOW YOU'D LIKE TO SEE THE STATE USE SOME OF THE MONEY IN THE BUDGET.

WHAT DO YOU MEAN BY "PRO-GROWTH INVESTMENT"?

>> ANYTHING THE STATE CAN DO ON WORKFORCE DEVELOPMENT, INNOVATION AND INFRASTRUCTURE CAN HELP OUR ECONOMY.

WE THINK GOVERNOR MURPHY DESERVES FOR CREDIT, FOR INNOVATION AND INFRASTRUCTURE, AND INCLUDING THE TRIPLING OF THE MONEY ON SCIENCE INNOVATION AND TECHNOLOGY.

ONE THING WE THINK WE NEED MORE OF IN THIS BUDGET IS WORKFORCE DEVELOPMENT SPENDING.

IT'S A CRITICAL FOCUS TO HELP OUR EMPLOYERS AND ALSO HELP SO MANY NEW JERSEYIANS OUT OF WORK, UNDER EMEMPLOYED, WE NEED TO FOCUS ON THOSE DISPLACED WORKERS ONCE OUR ECONOMY GETS BACK UP AND RUNNING.

>> HOW DO WE HAVE TO RETHINK THE WORKFORCE WE HAVE?

WE HAVE TO HAVE A GREATER SCALE WITH THE NUMBER OF PEOPLE LOOKING FOR WORK BUT WHAT SHOULD WE DO TO IMPROVE THE PROGRAMS WE HAVE AND WHAT SHOULD WE DO TO THINK BEYOND WHAT'S GOING TO BE DIFFERENT AND HELPFUL?

>> THAT'S AN EXCELLENT QUESTION AND SOMETIMES THE SOLUTION IS TOUGHER THAN YOU THINK BECAUSE EVERYBODY AGREES THAT WORKFORCE DEVELOPMENT IS IMPORTANT BUT HOW TO DO IT IS THE TOUGH PART?

NUMBER ONE, IF WE CAN FOCUS ON OUR COUNTY COLLEGES, THEY'RE INSTITUTIONS SPREAD THROUGHOUT THE STATES.

I THINK THERE'S A CAMPUS WITHIN 20, 30 MINUTES OF EVERY NEW JERSEY RESIDENTS AND THEY DO FANTASTIC WORK PREPARING FOR THE ECONOMY.

THE TWO-YEAR SCHOOLS DO SO MANY, WHETHER IT'S CREDIT COURSES, NONCREDIT COURSES PREPARING PEOPLE FOR FOUR YEAR COLLEGES BUT THEY DO A LOT ON TRAINING PROGRAMS THAT GET UNDER APPRECIATED AND NOT ENOUGH ATTENTION.

>> SEPARATE FROM THE BUDGET WE HAVE THE NEW FEDERAL MONEY FROM THE COVID RELIEF PACKAGE, SHOULD SOME OF THAT MONEY GO RIGHT AWAY TO WORKFORCE DEVELOPMENT PROGRAMS?

>> I THINK SO, YES, RHONDA.

THAT MONEY, IT'S TEMPTING, AND I THINK A LOT OF PEOPLE OUT THERE WANTS TO SPEND, SPEND, SPEND.

WE NEED TO BE CAREFUL WITH THAT, BUT I THINK THERE'S GOING TO BE SO MUCH OF THAT MONEY THAT INVESTING RIGHT AWAY INTO THINGS LIKE WORKFORCE, INNOVATION AND INFRASTRUCTURE.

I'LL ALSO SAY GRANTS FOR SMALL BUSINESSES THAT HAVE BEEN CLOSED OR LIMITED.

OUTSIDE OF THAT THERE WILL STILL BE BILLIONS OF DOLLARS LEFT SO IT'S IMPORTANT TO MAINTAIN THE GROWTH INVESTMENTS AND ALSO AT THE SAME TIME FIGURE OUT HOW TO GET SMOOTH INVESTMENTS AFTER THE FEDERAL MONEY IS GONE.

WE WANT TO HAVE A GLIDE PATH THAT DO THAT.

>> ALWAYS GOOD TO TALK TO YOU, THANK YOU FOR YOUR TIME.

>> THANK YOU, RHONDA.

>>> THIS PAST YEAR WAS A DIFFICULT ONE FROM ATLANTIC CITY.

A NEW REPORT FROM STOCKTON UNIVERSITY GAMING HOSPITALITY AND TOURISM TRACKED A BIG DROP IN VISITORS TO THE TOWN.

THE MEETING AND CONVENTION BUSINESS DROPPED BY 89% IN THE PAST 12 MONTHS AND THE CASINOS -- >> OF COURSE, IT WAS A DEVASTATING YEAR FOR THE INDUSTRY.

THINK ABOUT IT, THEY WERE CLOSED FOR 107 DAYS, WHICH IS ALMOST A THIRD OF THE YEAR.

SO EVEN THOUGH INTERNET GAMING AND SPORTS WAGERING WAS INCREASING, THERE'S NO WAY THEY COULD OVERCOME A 170 DAY CLOSURE, COMPLETELY CLOSED FOR THE ENTIRE FIRST ALMOST THE MIDDLE QUARTER OF THE YEAR.

SO IT WAS DEVASTATING FOR THE INDUSTRY.

>> AT THE START OF THIS YEAR, THE CASINOS EMPLOYED 20% FEWER WORKERS THAN LAST YEAR.

NEW JERSEY'S UNEMPLOYMENT RATE ROSE TO 7.9% IN JANUARY, AN INCREASE FROM DECEMBER'S RATE.

ONLY 900 JOBS WERE ADDED TO THE STATE'S ECONOMY IN THE FIRST MONTH OF THE YEAR.

THE CITY OF PATTERSON THIS WEEK MOVED CLOSER TO LAUNCHING ITS GUARANTEED INCOME PILOT AS PART OF THE MAYOR'S FOR GUARANTEED INCOME PRODUCT.

THAT'S A GROUP OF MAYORS WHO BELIEVE SECURITY CAN BE DONE WITH PROVIDING DIRECT INCOME TO RESIDENTS WITH NO STRINGS ATTACHED.

EVEN BEFORE THE PANDEMIC PEOPLE WERE WORKING TWO OR THREE JOBS AND COULD STILL NOT AFFORD BASIC NECESSITIES.

GUARANTEED INCOME HAS BEEN TALKED ABOUT AS A WAY TO COMBAT POVERTY FOR DECADES.

PATTERSON NOW JOINS A HANDFUL OF OTHER COMMUNITIES IN TRYING THE IDEA OUT.

110 ELIGIBLE RESIDENTS WILL BE CHOSEN TO RECEIVE A CASH PAYMENT OF $400 A MONTH FOR 12 MONTHS.

THE CITY WILL BEGIN TAKING APPLICATIONS NEXT MONTH.

THE PILOT PROGRAM IS FUNDED BY THE CEO OF TWITTER, JACK DORSEY.

>>> RIGHT NOW IN OUR STATE THERE ARE THOUSANDS OF RESIDENTS DESPERATELY IN NEED OF CASH.

THEY NEED MONEY TO PAY THEIR RENT.

MANY HAVE STOPPED PAYING ALTOGETHER BECAUSE THEY CAN'T AFFORD IT AND THEY CURRENTLY HAVE SOME PROTECTIONS BECAUSE THERE IS AN EVICTION MORATORIUM IN PLACE.

IS THAT ENOUGH?

WHAT HAPPENS WHEN THE MORATORIUM IS LIFTED?

WE PUT THE ISSUE IN FOCUS THIS WEEK.

AS PART OF AN EXECUTIVE ORDER SIGNED BY GOVERNOR PHIL MURPHY ONE YEAR AGO, LANDLORDS WERE NOT ALLOWED TO EVICT OR LOCKOUT TENANTS FOR NONPAYMENT OF RENT.

BUT THEY ARE ABLE TO START LEGAL PROCEEDINGS AGAINST TENANTS WHO ARE BEHIND IN THEIR PAYMENTS AND MANY FEAR THIS WILL LEAD TO AN EVICTION CRISIS.

THERE ARE AT LEAST 60,000 PENDING EVICTIONS ACROSS THE STATES.

ACROSS THE COUNTRY, ACCORDING TO DATA RECENTLY COLLECTED BY THE PHILADELPHIA FEDERAL RESERVE BANK, 1.34 MILLION HOUSEHOLDS ARE BEHIND ON RENT, OWING A TOTAL OF $7.2 BILLION, OR $5,400 ON AVERAGE.

THIS WEEK WE LEARNED MORE FINANCIAL ASSISTANCE IS ON THE WAY TO TENANTS AS THE MURPHY ADMINISTRATION ANNOUNCED THE SECOND PHASE OF A RENTAL ASSISTANCE PROGRAM.

LIEUTENANT GOVERNOR SHEILA OLIVER SAID THE STATE IS MAKING $353 MILLION IN FEDERAL FUNDS AVAILABLE TO LOW AND MODERATE INCOME HOUSEHOLDS TO TRY TO AVERT A FULL-BLOWN HOUSING CRISIS.

>> I HAVE NOT SEEN, I THINK IN MY PROFESSIONAL LIFETIME, WORKING IN THIS AREA, THE TYPE OF CATASTROPHE WE POTENTIALLY WILL HAVE ON OUR HANDS.

THIS IS SOMETHING THAT IS HURTING THE ENTIRE COUNTRY.

BUT FOR US IN NEW JERSEY, WE HAVE ONE OF THE HIGHEST COSTS OF LIVING FOR HOUSING IN THE COUNTRY.

>> TO LEARN MORE ABOUT THESE CHALL LEDGES I SAT DOWN WITH JAMES WILLIAMS, THE DIRECTOR OF RACIAL JUSTICE POLICY AT THE FAIR SHARE HOUSING CENTER.

THE FAIR SHARE HOUSING CENTER HAD SEVERAL MONTHS AGO PUT OUT SOME RATHER DIRE PREDICTIONS ABOUT POTENTIAL EVICTIONS IN NEW JERSEY.

HOW DO THINGS LOOK NOW FROM YOUR PERSPECTIVE?

>> I THINK THE CHANGE IN FEDERAL ADMINISTRATION HAS MADE SOME PROGRESS TOWARDS PROVIDING SOME MUCH NEEDED ASSISTANCE TO NEW JERSEYIANS BUT THERE'S STILL A GAP WE HAVEN'T TRULY PREPARED FOR.

NEW JERSEY IS ONE OF THE MOST EXPENSIVE STATES TO LIVE IN IN THE U.S.

SO COST OF LIVING IS VERY HIGH.

WE RECOGNIZE THAT COVID HAS CAUSED AN IMPACT PARTICULARLY ON COMMUNITIES OF COLOR, HUGE RACIAL WEALTH GAP IN THE STATE OF NEW JERSEY, SO OVERALL, EVEN WITHOUT RACE, THERE WAS GOING TO BE A HUGE NEED FOR HOW WE CAN PREVENT A MASSIVE WAVE OF EVICTIONS.

SO TO KIND OF SUM THAT UP, PROGRESS HAS BEEN MADE BUT THERE'S STILL A TREMENDOUS AMOUNT OF WORK THAT NEEDS TO BE DONE.

>> HOW DO WE EVEN FILL THAT GAP, AS YOU MENTIONED?

I MEAN, THE BIG FEAR IS ONCE THE EVICTION MORATORIUM IS LIFTED AND ALL THIS BACK RENT IS DUE, HOW ARE PEOPLE GOING TO PAY FOR IT?

>> THAT'S A GREAT, GREAT QUESTION.

SO WE ARE ACTIVELY WORKING WITH LEGISLATORS, THE GOVERNOR'S OFFICE TO TRY TO FIGURE OUT A WAY TO GET THAT DONE.

THERE'S -- FOR THE LANDLORDS AND THE APARTMENT ASSOCIATIONS AND THAT INDUSTRY, THEY HAVE TAKEN A TREMENDOUS HIT BUT THE IMPACT FOR THOSE THAT ARE RENTERS HAS BEEN EVEN GREATER.

SO THE CONVERSATIONS BETWEEN LEGISLATORS AND THE FRONT OFFICE AND ADVOCATES ALIKE HAS BEEN ONGOING FOR -- SINCE THE PANDEMIC STARTED AS TO WHAT WILL BE THE MOST EFFECTIVE WAY TO ENSURE THAT THAT NET IS CAST AND IT'S CAST IN SUCH A WAY THAT WE CAN CAPTURE THE MOST PEOPLE.

>> IS THERE REAL FEAR THAT WITHOUT A PLAN, WITHOUT LASER FOCUS ON THIS PROBLEM, WE COULD SEE THOUSANDS OF NEW JERSEY RESIDENTS BECOME HOMELESS?

>> ABSOLUTELY.

THAT'S A HUGE FEAR.

IT'S ONE THAT'S BEEN KEEPING A LOT OF ADVOCATES UP AT NIGHT, A LOT OF LEGISLATORS, THE FRONT OFFICE ADVOCATES, IT'S JUST -- AND MORE IMPORTANTLY TENANTS.

YOU KNOW, THE INDIVIDUALS THAT COULD BE AFFECTED BY THIS.

SO YES, THE FEAR OF NEW JERSEY BEING THE NUMBER ONE STATE FOR NOT ONLY FORCLOSURES BUT, YOU KNOW, HOMELESSNESS IS A REAL POSSIBILITY AND IT COULD BE RIGHT AROUND THE CORNER.

SO WE HAVE TO WORK ACTIVELY AND TO YOUR POINT, LASER FOCUSED.

ANY LACK OF FOCUS ON OUR PART COULD LEAD TO WHAT YOU JUST EXPRESSED.

>> THANK YOU FOR YOUR HARD WORK ON THIS VERY DIFFICULT PROBLEM AND THANK YOU FOR TALKING TO ME TODAY.

>> THANK YOU FOR HAVING ME.

>>> NEW JERSEY'S MAYORS ARE STRUGGLING TO ADDRESS THE RENTAL CRISIS IN THEIR COMMUNITIES.

I TALKED WITH TRENTON'S MAYOR ABOUT WHAT'S HAPPENING IN THE CAPITAL CITY.

THE FAIR SHARE HOUSING CENTER IS WORRIED THE CURRENT SITUATION WE HAVE WITH RENTERS UNABLE TO PAY THEIR RENT COULD EXACERBATE HOMELESSNESS IN NEW JERSEY IF WE DON'T FIND A SOLUTION.

DO YOU AGREE WITH THAT?

>> ABSOLUTELY.

IF WE WERE JUST, YOU KNOW, REOPEN THE CITY AND ALLOW LANDLORDS TO COLLECT THEIR RENT IN ONE FELL SWOOP, A LOT OF PEOPLE WOULD BE HOMELESS.

AND THAT'S WHY WE DEDICATED OVER $600,000 IN C.A.R.E.S.

ACT FUNDING FOR RENT STABILIZATION SO THAT FAMILIES AGAIN COULD KEEP UP WITH THE RENT.

WE'RE ALSO DOING A UTILITY ASSISTANCE PROGRAM AND EVEN A FIX YOUR HOUSE UP PROGRAM.

>> JUST GENERALLY SPEAKING, HOW MANY TENANTS DO YOU THINK ARE STRUGGLING IN THE CITY OF TRENTON?

>> ALL OF THEM.

I MEAN, WE'RE ALL, IN MANY CASES, JUST A PAYCHECK AWAY OF HOMELESSNESS.

AND WITHOUT EVEN THE PAYCHECK, THEY'RE RELYING ON THE MORATORIUM AGAINST RENTAL EVICTIONS.

SO WE HEAR THAT LOUD AND CLEAR.

WE'VE TALKED TO MANY OF THE FAMILIES OUT THERE.

THERE'S A LOT OF FAMILIES THAT ARE MOVING IN WITH OTHER FAMILIES, AND THAT DOESN'T DO WELL FOR COVID SPREAD.

SO WE'D LIKE TO KEEP THEM IN THEIR HOMES, PROVIDE FURTHER RENTAL ASSISTANCE AS THE MORATORIUM FOR EVICTIONS GETS LIFTED.

AND ALSO HELP THE TENANTS WITH THEIR UTILITIES AS WELL.

>> IT REALLY JUST SEEMS LIKE THIS IS JUST SUCH A HUGE PROBLEM.

THE AMOUNTS OF MONEY WE 'TALKING ABOUT ASTRONOMICAL.

BUT THE REALITY IS, IF YOU HAVEN'T BEEN ABLE TO AFFORD YOUR RENT THE PAST YEAR YOU'RE NOT GOING TO BE ABLE TO AFFORD IT WHEN IT ALL COMES DUE.

>> THAT WAS SO IMPORTANT FOR THE FEDS TO COME UP WITH THE RECOVERY PROGRAM AND WE'RE GRATEFUL TO THE BIDEN ADMINISTRATION FOR EXTENDING THE STIMULUS FUNDING.

THERE'S A LOT OF WORRY OUT THERE, BUT THE CITY IS NOT GOING TO ABANDON OUR RENTERS AND WE'RE GOING TO TRY TO KEEP THEM IN THEIR PLACE AS MUCH AS WE CAN.

>> MAYOR, AS YOU LOOK OUT AFTER THIS CRISIS, WHAT HAPPENS IN TERMS OF LANDLORDS IN THE CITY?

ARE YOU WORRIED ABOUT THEIR STABILITY AS WELL, AND WHAT ABOUT THE PROSPECTS FOR RENT INCREASES WHEN THIS IS ALL OVER?

>> THAT IS ALSO THE CHALLENGE GOING FORWARD BECAUSE THERE'S A LOT OF LANDLORDS THAT WANT TO CATCH UP AND THEY MAY OWN A DOZEN HOUSES OR MORE THAT THEY'RE RENTING OUT AND IN MANY INSTANCES, THEY'RE LEVERAGING THEIR FINANCES TO STAY IN BUSINESS, SO TO SPEAK.

WE HEAR IT BOTH FROM LANDLORDS AND RENTERS ALIKE.

BUT I THINK, IN EFFECT, WE'RE HELPING BOTH BY PROVIDING RENTAL ASSISTANCE.

>> MAYOR, THANK YOU SO MUCH FOR SPENDING SOME TIME WITH ME.

I DO APPRECIATE IT.

>> THANKS SO MUCH, RHONDA.

>> WE WANTED TO FIND OUT JUST HOW BADLY LANDLORDS WERE IMPACTED BY NEW JERSEY'S RENT MORATORIUM.

FOR THAT WE TURN TO THE EXECUTIVE DIRECTOR OF THE NEW JERSEY APARTMENT ASSOCIATION.

DAVID, LET'S START FIRST WITH THE FACT THAT THIS WEEK THERE WAS ANOTHER RENTAL ASSISTANCE PROGRAM ANNOUNCED BY THE STATE.

IS IT GOING TO BE ENOUGH, DO YOU THINK, TO HELP NEW JERSEY IN THE MIDDLE OF THIS CRISIS WE'RE IN?

>> WE'RE VERY ENCOURAGED BY SEEING THE NEW RENTAL ASSISTANCE PROGRAM COME TO FRUITION.

THIS MONEY ANNOUNCED TODAY WAS SOMETHING THAT CAME FROM THE STIMULUS ACT THAT WAS PASSED BACK IN DECEMBER.

SO WE'RE TALKING ABOUT $353 MILLION THAT THE STATE IS USING, PLUS AN ADDITIONAL 235, $236 MILLION GOING TO 14 COUNTIES AND TWO CITIES.

WILL IT BE ENOUGH?

I THINK IT'S A GOOD FIRST STEP BUT I THINK WHAT WE'RE LOOKING AT IS A MULTI-BILLION DOLLAR PROBLEM.

>> AND THAT PROBLEM ISN'T JUST A STORY ABOUT TENANTS.

IT'S ALSO A PROBLEM IMPACTING LANDLORDS.

EXPLAIN TO US WHAT YOU'VE HEARD FROM LANDLORDS ACROSS THE STATE AS THEY WORK THEIR WAY THROUGH THIS.

>> ABSOLUTELY.

FOR THE LARGER LANDLORDS THAT HAVE THE RESOURCES, THEY'VE HAD TO REALLOCATE RESOURCES FROM CAPITAL BUDGETS AND MAINTENANCE TO PAY FOR MORTGAGE AND TAXES.

THE SMALLER LANDLORDS THAT HAVE PUT THEIR LIFE SAVINGS INTO THESE PROPERTIES THEY'RE HANGING BY A THREAD.

THE STORIES I HEAR ARE GUT WRENCHING.

AND SO, WE'RE HOPEFUL THIS ASSISTANCE WILL BE A GOOD FIRST STEP.

AS YOU SAID, THIS IS NOT ABOUT LANDLORDS.

THIS IS NOT JUST ABOUT TENANTS.

HONESTLY THIS IS ABOUT THE PANDEMIC AND THE WAY THE VIRUS IS IMPACTING SOCIETY.

>> ONE ISSUE THAT YOU HAVE RAISED IS ON THE LANDLORD SIDE THERE COULD BE POTENTIALLY AN ISSUE OF UNPAID PROPERTY TAXES.

CAN YOU EXPLAIN HOW THIS MIGHT IMPACT THE STATE MORE BROADLY?

>> SURE.

FOR PROPERTY TAX PURPOSES, MULTI-FAMILY PROPERTIES ARE TAXED BASED ON NET OPERATING INCOME, THAT'S REVENUE LESS EXPENSES.

THE STATE EVICTION MORATORIUM INDICATED TO PEOPLE THEY DIDN'T NEED TO PAY THEIR RENT, OTHERS COULDN'T PAY THEIR RENT.

REGARDLESS WITHOUT THE RENT REVENUE, THE VALUE OF THE PROPERTY DROPS.

IF I'M A LANDLORD, PAYING $300,000 A YEAR IN PROPERTY TAXES BECAUSE OF THE STATE POLICIES AND THE LACK OF RENT REVENUE, I'M ONLY PAYING $200,000 A YEAR IN PROPERTY TAXES, THAT 100,000 DELTA HAS TO BE MADE UP BY SOMEBODY AND THAT'S GOING TO FALL DIRECTLY ON THE BACKS OF HOMEOWNERS.

>> ARE YOU WORRIED EVEN WITH THE ASSISTANCE PROGRAMS THAT HAVE BEEN ANNOUNCED, WHEN THE EVICTION MORATORIUM ENDS, THERE STILL WILL NOT BE ENOUGH MONEY FOR TENANTS TO REPAY THEIR LANDLORDS?

>> IT'S DEFINITELY A CONCERN.

WHAT I WOULD SAY TO THAT IS A COUPLE OF THINGS, RIGHT.

THE STATE HAS A BILLION DOLLARS IN TOTAL COMING TO IT STRICTLY FOR RENTAL ASSISTANCE.

ON TOP OF THAT, THE GOVERNOR BORROWED ABOUT $4.3 BILLION, AND AS IT WAS ANNOUNCED THE OTHER DAY, THERE'S GOING TO BE $6 BILLION IN RESERVES OR IN SURPLUS AT THE END OF THIS YEAR.

OUR THINKING IS, IF HOUSING IS A NECESSITY, WHICH IT IS, AND IT IS A TOP PRIORITY, THEN WE NEED TO REALLOCATE RESOURCES TO ADDRESS THIS PRIORITY.

>> IT SEEMS THAT WHEN WE HAVE SITUATIONS LIKE THIS AND WE CERTAINLY HAVEN'T HAD ANYTHING LIKE THIS IN TERMS OF THE PANDEMIC'S FALLOUT, BUT THERE IS ALWAYS THIS TENSION BETWEEN TENANT AND LANDLORD.

AND SOME LANDLORDS GET A BAD WRAP, FRANKLY.

MAYBE SOME DESERVE IT, MAYBE SOME DON'T.

HOW DO YOU RECONCILE THE NARRATIVE AROUND THAT IN A CRISIS LIKE THIS?

>> WE'RE ALL IN THIS TOGETHER.

SO AT THE END OF THE DAY WHEN WE'RE TALKING ABOUT THIS ISSUE, WHICH SHOULDN'T BE LANDLORD AGAINST TENANT OR TENANT AGAINST LAND LORD, IT SHOULD BE HELP EVERYONE HERE.

>> THANK YOU FOR HELPING US UNDERSTAND THE SITUATION.

>>> OTHER RESIDENTS HAVE BEEN UNABLE TO PAY THEIR UTILITY BILLS.

THERE IS ALSO A MORATORIUM ON UTILITY SHUTOFFS BUT ONCE THAT'S LIFTED THOSE BILLS ALSO COME DUE TO THE TUNE OF $70 BILLION OWED BY CUSTOMERS.

WHO'S GOING TO PAY THOSE BILLS?

WE'RE TRYING TO FIGURE THAT OUT.

WE TALKED TO AN ADVOCATE FOR UTILITY CONSUMERS.

>> WE SAW GOVERNOR MURPHY EXTEND THE UTILITY SHUT OFF MORATORIUM.

HOW IMPORTANT WAS THAT ACTION?

>> IT WAS ESSENTIAL.

THERE ARE SO MANY RIGHT NOW WHO ARE SUFFERING, I THINK THERE ARE OVER 1 MILLION HOUSEHOLDS THAT HAVE BEEN UNABLE TO PAY THEIR GAS, ELECTRIC OR WATER BILLS.

SO HE REALLY THREW THEM A LIFELINE, AT LEAST UNTIL THE SUMMER WHEN HOPEFULLY WE CAN GET A HANDLE ON ALL OF THESE BILLS AND TRY TO HELP THESE PEOPLE PAY FOR THESE ESSENTIAL SERVICES.

>> THIS IS SUCH A DIFFICULT ISSUE, AND THE BPU HAS STARTED HOLDING HEARINGS TO TALK ABOUT WHAT HAPPENS WHEN THE BILLS COME DUE.

>> RIGHT.

>> WE'RE TALKING ABOUT SO MUCH MONEY.

WHERE DO YOU THINK THIS ISSUE IS GOING TO GO?

>> WELL, I THINK THERE ARE -- SO WE'RE HAVING -- NOT ONLY ARE THEY HAVING HEARINGS ON THE ISSUE.

BUT WE'RE HAVING MULTIPLE MEETINGS EVERY WEEK TO TRY TO ROLL UP OUR SLEEVES AND TACKLE THE PROBLEM.

I THINK THE FIRST THING WE HAD TO DO, AND WE'RE STARTING TO DO THIS, IS REALLY GET A HANDLE ON HOW MUCH MONEY WE'RE TALKING ABOUT AND HOW MANY HOUSEHOLDS ARE REALLY SUFFERING.

WE'RE GOING TO HAVE TO GET A HANDLE ON THAT, AND WE'RE STARTING TO DO THAT.

THEN WE HAVE TO FIGURE OUT WHERE THERE IS MONEY AVAILABLE TO HELP THESE PEOPLE.

WE DO HAVE THE FEDERAL STIMULUS MONEY COMING IN, HOPEFULLY THAT -- THERE WILL BE SOME MONEY THERE.

THERE ARE SOME ASSISTANCE PROGRAMS THAT WE HAVE TO TRY TO MAKE AVAILABLE.

WE HAVE TO MATCH UP THE PROGRAMS WITH THE PEOPLE WHO NEED THEM.

WE HAVE TO LOOK AT THE ELIGIBILITY GUIDELINES AND MAKE SURE THE MONEY IS AVAILABLE TO THE PEOPLE WHO NEED IT.

SOME OF THE PEOPLE RIGHT NOW WHO ARE IN NEED AREN'T PEOPLE WHO ARE TRADITIONALLY BEEN IN NEED.

SO WE HAVE TO MAKE SURE THAT OUR ELIGIBILITY GUIDELINES ACTUALLY MATCH THE UNIVERSE OF PEOPLE WHO NEED THAT MONEY NOW.

SO ONCE WE'VE DONE THOSE THINGS AND WE FIGURED OUT HOW DO WE GET THE MONEY TO THE PEOPLE WHO NEED IT, THEN WE CAN FIGURE OUT WHAT'S LEFTOVER AND THERE HAS TO BE SOME LEVEL OF CONTRIBUTION FROM UTILITY RATE PAYERS BUT ALSO FROM UTILITY SHAREHOLDERS TO TRY TO WIPE THINGS CLEAN SO PEOPLE CAN START OVER.

>> I'VE SEEN THE PICTURE, THE NUMBER 700 MILLION COULD BE OWED.

DOES THAT SEEM ACCURATE TO YOU OR DO YOU THINK IT COULD BE HIGHER?

>> THAT'S THE OVERALL AMOUNT THAT IS OWED.

BUT THAT IS -- THAT DOESN'T TAKE INTO ACCOUNT THE AMOUNT THAT WE NORMALLY HAVE.

THERE IS A NORMAL AMOUNT OF ARREARAGES OWED BY PEOPLE WHO CAN'T PAY THEIR BILLS.

SO THAT IS THE TOTAL.

BUT THERE IS CERTAINLY A REGULAR AMOUNT THAT WE USUALLY HAVE TO DEAL WITH, WHICH IS TWICE AS LARGE THIS YEAR AS IT USUALLY IS.

>> IN TERMS OF TRYING TO GET UTILITY SHAREHOLDERS TO REACH AN AGREEMENT ON THIS, THAT SOUNDS LIKE IT MIGHT BE A TOUGH SITUATION.

>> WELL, IT'S ALL TOUGH.

IT'S TOUGH FOR UTILITY RATE PAYERS TO ABSORB IT AS WELL.

BECAUSE YOU DON'T WANT TO BE IN A SITUATION WHERE RATE PAYERS, IF YOU ASK RATE PAYERS TO SHOULDER THE WHOLE THING AND PUT IT INTO THEIR RATES, YOU'RE GOING TO PUSH MORE RATE PAYERS INTO A SITUATION WHERE THEY CAN'T PAY.

SO WHAT I THINK THAT -- I THINK THE AMOUNTS ARE JUST TOO GREAT FOR ANY ONE GROUP TO SHOULDER IT.

SO I THINK THE GOAL IS TO GET THE NUMBER DOWN AS LOW AS POSSIBLE USING THE OTHER SOURCES OF FUNDS AND THEN, OVER TIME, BOTH THE UTILITIES AND THE RATE PAYERS ARE GOING TO HAVE TO SHOULDER SOME OF THAT BURDEN.

>> YOU HAVE A VERY TOUGH JOB.

SO WE THANK YOU FOR YOUR WORK ON THIS.

IT'S A REALLY CHALLENGING TIME.

SO AGAIN, THANK YOU.

>> IT IS HARD.

WE HAVE TO DO THE BALANCING, BECAUSE, YOU KNOW, WE ALSO WANT THE UTILITIES TO REMAIN FINANCIALLY STABLE.

>> RIGHT.

STEPHANIE, THANK YOU.

>> SURE.

>>> AND THAT WRAPS UP OUR SHOW FOR THIS WEEK.

THANK YOU FOR WATCHING.

AND ARE YOU A BUSINESS INTERESTED IN SPONSORING "NJ BUSINESS BEAT"?

CONTACT STEVE PRIOLO AT THE EMAIL OR PHONE NUMBER YOU SEE AT THE BOTTOM OF YOUR SCREEN.

SEE YOU NEXT WEEK.

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