"The goal is to encourage participants to stay on top of their payments, reduce eviction rates, and provide a safety net for landlords involved in the program," -Senator Burgess
By: Richard L. Smith
A groundbreaking legislative proposal, sponsored by The Honorable Senator Renee Burgess, aimed at aiding low-income tenants with limited credit history has made significant headway.
The "Guaranteed Rental Payment Pilot Program," as part of bill S-3561, has successfully advanced out of the Senate Community and Urban Affairs Committee.
Under this initiative, a specialized fund will be established within the State Rental Assistance Program (SRAP) and will be overseen by the Department of Community Affairs (DCA).
The primary objective of this program is to enhance housing opportunities for individuals who struggle with poor credit scores.
Officials said it seeks to establish a more nuanced understanding of the relationship between a tenant's credit rating and their ability to adhere to lease agreements, including making regular rental payments.
Senator Burgess (D-Essex) highlighted the critical need for such a program, especially in the context of underserved communities.
She pointed out that individuals with a history of bad credit find it increasingly difficult to recover financially while simultaneously trying to secure a safe and stable living environment.
The affordable housing crisis, which has intensified since the pandemic, has made this initiative even more urgent.
A vital aspect of the bill is its emphasis on data collection. It specifically calls for monitoring the lease default rates among low- or moderate-income participants who benefit from rental assistance through SRAP.
The program will compare these rates against tenants with fair or better credit scores, providing valuable insights into the pilot program's effectiveness in achieving its goals.
With its release from the Senate Community and Urban Affairs Committee, bill S-3561 takes a significant step towards potentially transforming the landscape of rental housing for low-income individuals in the state.