Bill > A5846

Introduced Session

This bill would establish a Statewide limitation on rent increases. Specifically, the bill would prohibit a residential landlord from increasing rent a dwelling unit by more than 5 percent plus inflation, or 10 percent, whichever is lower, of the lowest rental rate charged for that dwelling unit at any time during the 12 months prior to the date when the increase takes effect. The rent increase limitation established by this bill would not apply to the following: (1) Non-residential real property. (2) A dwelling unit restricted by deed, regulatory restriction contained in an agreement with a government agency, or other recorded document as affordable housing for persons and families of very low, low, or moderate income. (3) A dormitory constructed and maintained in connection with an institution of higher education for the use and occupancy of students in attendance at the institution. (4) A dwelling unit subject to a "Notice of Rent Protection Emergency," established pursuant to P.L.2002, c.133 (C.2A:18-61.62 et seq.), the application of which results in a lower permitted rent increase for the specified year than that permitted by this bill. (5) A dwelling unit that has been newly constructed, and issued a certificate of occupancy as a result of its completion, within the previous 15 years. (6) A single family dwelling unit, provided that (a) the landlord is not a real estate investment trust, as defined in the federal Internal Revenue Code, a corporation, or a limited liability company in which at least one member is a corporation; and (b) the tenant has been provided written notice that the residential real property is exempt from the requirements of this bill, if the tenancy has been established on or after the first day of the third month next following enactment. (7) A duplex in which the landlord occupies one of the units as the landlord's principal place of residence at the beginning of the tenancy. Additionally, the rent increase limitation established by this bill would not apply to a dwelling located in a municipality that enforces a local rent control, rent leveling, or rent stabilization ordinance, the application of which results in a lower permitted rent increase for a 12-month period than this bill would. Furthermore, the rent increase limitation established by this bill would not apply to a new tenancy in which no tenant from the prior tenancy remains in lawful possession of the dwelling unit. This bill would function in addition to, and not in place of, the existing statutory prohibition on unconscionable rent increases. A violation of this bill would constitute an unlawful practice pursuant to the New Jersey consumer fraud act, P.L.1960, c.39 (C.56:8-1 et seq.) and would subject the offending landlord to all remedies and penalties available to an aggrieved consumer, in this case the tenant, under that statute. Additionally, the bill permits a tenant to petition a court of competent jurisdiction to terminate a lease containing a provision in violation of this bill. Finally, in accordance with the Anti-Eviction Act, P.L.1974, c.49 (C.2A:18-61.1), a tenant would be authorized to assert a violation of this bill as a defense to an eviction action. The bill authorizes the Commissioner of Community Affairs to adopt the rules and regulations necessary to effectuate its purposes. In order to avoid the creation of an incentive for landlords to increase rents substantially prior to this bill's enactment, the bill would apply retroactively to rent increases established on or after November 1, 2019.

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Verlina Reynolds-Jackson (D)*,  Benjie Wimberly (D)*,  Thomas Giblin (D),  Cleopatra Tucker (D), 

Introduced, Referred to Assembly Housing and Community Development Committee (on 11/14/2019)

Official Document