Today the state legislature voted to approve reforms to Stay NJ, a senior homeowner subsidy, lowering the income cap to $200,000 and reducing benefits for higher-income enrollees. This change will maintain benefits for roughly 90 percent of seniors, while targeting the highest benefits of $6,500 for only those seniors with $100,000 or less in income. This aligns with prior recommendations by New Jersey Policy Perspective to reduce the cost of the program, ultimately reducing program costs by $450 million annually.
In response, New Jersey Policy Perspective (NJPP) issues the following statement.
Peter Chen, Senior Policy Analyst, NJPP:
“These much-needed reforms will prevent the state from sending tax relief to very-high-income households, while focusing the benefit on less wealthy seniors. By adopting measures that focus aid on low- and moderate-income seniors, the bill creates a more progressive structure, directing more money to those who need it most.
“That said, serious issues remain with the program, namely its large overall cost and its focus on homeowners. Senior renters are more likely to be housing insecure due to rent increases and eviction, and are also more likely to be low-income and Black or Hispanic/Latinx. Given the state’s rising rents and housing costs, the program’s renter gap is a real problem. And with a $1.4 billion structural deficit and a price tag of more than $740 million, the legislature may find itself revisiting this program again before long.”
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