Bill > A1738

Introduced Session

Too many residents of the State of New Jersey are currently residing in publicly subsidized rental housing units that fail to meet minimum standards of safety and sanitation. Landlords who receive taxpayer money by way of rental subsidies should be held accountable and should be required to provide safe and sanitary housing accommodations. Accordingly, this bill implements various changes to State rental housing laws for landlords who receive rental housing subsidies, in the areas of landlord registration requirements, inspection of multiple dwellings, warranty of habitability, and distribution of certain information. Rental Subsidy The bill defines a "rental subsidy" as funds paid to a landlord pursuant to federal project-based or tenant-based section 8 rental assistance or paid as a rental assistance grant pursuant to section 1 of P.L.2004, c.140 (C.52:27D-287.1). Landlord Registration Current law requires landlords to register with the municipality in which the rental premises is located, or with the Department of Community Affairs (DCA), depending on circumstances. Under the bill, a landlord who receives rental subsidies is required to include the following additional information in a landlord registration: (1) in the case of a record owner that is a corporation, limited liability company, or other legal or commercial entity, the names and street addresses of residence of the members, directors, officers, and registered agents, as applicable; and (2) for each person required to be named in the registration - two telephone numbers, including at least one cell phone number; a street address of residence; and an active email address. The bill also specifies that in order to be granted a judgment of possession of a rental premises, or to receive any public funds for rehabilitation of a rental premises, a landlord is required to have been registered for at least 90 days. Landlords are currently required to file an amended registration within 20 days of any change of information included in the registration. Violation of this provision results in a civil penalty of up to $500. Under the bill, a landlord who receives a rental subsidy and who fails to comply with the amended registration requirements will be liable to a civil penalty of not less than $100 or more than $2,500. Additionally, the bill requires every landlord who receives a rental subsidy to certify annually by November 1 that the registration is accurate and contains current information. Failure to annually certify will also result in a civil penalty of $100 to $2,500. Rehabilitation for affordable housing units The bill provides that a municipality may satisfy up to 10 percent of its obligation to provide a fair share of the region's present and prospective need for affordable housing by establishing a program encouraging the rehabilitation of substandard dwelling units and the dedication of rehabilitated units for rental as low income housing for periods of up to twenty years. Under the bill, the Commissioner of DCA will award or grant funds available from the "New Jersey Affordable Housing Trust Fund" in amounts of up to $15,000 per unit for this purpose. The commissioner is required to: (1) target the award or grant of funds to housing regions based on the percentage of the State's low and moderate income housing need in each region; and (2) target the award or grant of funds to property owners that have a demonstrated history of, or pledge to accept in the future, rental subsidies. Inspection and Scoring of Multiple Dwellings The bill requires the Commissioner of Community Affairs to establish a rental inspection and reinspection program for multiple dwellings that contain units for which a rental subsidy is received. Under the provisions of the bill, a multiple dwelling will be inspected: (1) at least once every five years; (2) within 10 days of receipt of notice of a change of occupancy for a multiple dwelling located in a municipality that does not provide for a change of occupancy inspection through ordinance. (3) within 10 days of complaint filed by a tenant, alleging one or more significant violations upon the premises, unless the complaint alleges a violation that is life threatening to tenants, in which case the bureau is required to inspect within 24 hours of the complaint being filed. The bill further provides that a multiple dwelling found to have any significant violations will be reinspected according to the following schedule, until every significant violation has been remedied: (1) within 24 hours, if the significant violation is deemed to be life threatening to tenants; (2) within 30 days; (3) for any other significant violation, within 60 days; and (4) though a follow up inspection, six months to one year after the reinspection producing a satisfactory result. Pursuant to the bill, the commissioner will establish a scoring method to be conducted annually, which will include, but not be limited to the following criteria: (1) the number of violations found during any inspection conducted by the Bureau of Housing Inspection (BHI); (2) the number of significant violations; (3) the number of administrative citations and special assessments issued by the municipality in which the multiple dwelling is located; (4) the number of letters of intent to condemn a property for lack of maintenance; (5) the results of any inspection conducted in the prior year by the United States Department of Housing and Urban Development, if that information has been provided to the commissioner; and (6) whether the multiple dwelling has been scored in the lowest performing 20 percent in the past, and whether it has successfully passed four consecutive inspections since the designation. The fees associated with inspections and reinspections will be paid by the landlord according to a fee schedule established by the commissioner. Additionally, a landlord whose premises was found to have a significant violation will be required to attend 10 hours of training and will bear any expense incurred by the training. If a significant violation is found following an inspection, the commissioner is required to: (1) notify, if applicable, the public housing authority that operates the multiple dwelling within 48 hours of the inspection or reinspection; (2) notify the mayor and the council of the municipality in which the multiple dwelling is located, within 48 hours if a significant violation is life threatening, or within five business days for all other significant violations; and (3) in the case of a multiple dwelling that participates in federal section 8 housing, notify the Department of Housing and Urban Development (HUD) New Jersey field officer of the complaint and violation. The bill also requires the commissioner to urge HUD to report inspection violations discovered pursuant to federal regulation to DCA. Utilizing the scoring method set forth in the bill, the commissioner is required to annually determine: (1) the highest performing 20 percent of multiple dwellings Statewide. If a multiple dwelling achieves this designation, and has not received a significant violation in either of the prior two five-year inspection cycles, the multiple dwelling may be inspected once every eight years. BHI may conduct random spot checks or inspections based upon tenant complaints at any time during the eight years between full inspections. If any significant violations are found by BHI, or if any significant violations are found during an inspection conducted by a municipality, the multiple dwelling will lose its designation and will be subject to the inspection schedule set forth in this bill for significant violations; and (2) the lowest performing 20 percent of multiple dwellings Statewide. If a multiple dwelling achieves this designation, it will be inspected at least once every six months. If the multiple dwelling passes two consecutive biannual inspections, it will be inspected once every two years. A multiple dwelling so designated shall remain on a biannual inspection schedule until such time as the commissioner determines that the multiple dwelling is no longer in the lowest performing 20 percent. The dwelling will also be subject to inspections in response to a tenant complaint and change of occupancy inspections. The bill provides that if a tenant of a multiple dwelling files a complaint with BHI, alleging one or more significant violations upon the premises, BHI is required to inspect the property within 10 days of the complaint being filed, unless the complaint alleges a violation life threatening to tenants, in which case BHI is required to inspect within 24 hours of the complaint being filed. The bill also provides that if a multiple dwelling is located in a municipality that does not require change of occupancy inspections by ordinance, BHI will conduct change of occupancy inspections. The bill defines a "significant violation" as a lack of heat, running water, or adequate sewage disposal facilities, infestation of rats, mice, roaches, termites, and other vermin, structural deficiency, and any other conditions that an inspector deems a threat to the health or safety of the tenants. Warranty of Habitability The bill provides that any in action before the court in which a tenant asserts a warrant of habitability violation by a landlord who accepts a rental subsidy, the court is required to notify DCA within two business days. Upon notice to DCA, BHI is required to inspect the property within 10 days. A hearing to determine violation of the warranty of habitability may not be set by the court prior to the completion of the inspection by the bureau. If it is determined by the court that failure to pay rent was due to a significant violation of the warranty of habitability of the premises, the court will direct the deposit of the tenant portion of rental payments with a court-appointed administrator for use in remedying the defective condition. The State or public housing authority, as the case may be, will retain the discretion to withhold any portion of the rental subsidy until a reinspection by BHI determines every significant violation has been remedied. Information made available to tenants The bill provides that every landlord is required to post in every common area of a tenant-occupied multiple dwelling and include in a printed notice in the lease: (1) instructions on how to file a tenant complaint with BHI; and (2) instructions on how to access and use the 2-1-1 telephone system, which provides information and referrals to health, human, and social service organizations, including information concerning housing resources. Restrictions on State and local funding The bill further provides that prior to the award of public funding opportunities, including tax credit financing, related to development of real property or other economic development, the awarding authority is to consider whether the applicant is an owner of a multiple dwelling determined to be in the lowest performing 20 percent of multiple dwellings Statewide. If the public funding is awarded to such an owner, the awarding authority is required to notify DCA and the commissioner is required to submit an annual report to the Legislature of these awards and with recommendations about any suggested limitations or prohibitions related to public funding.

AI Summary

Committee Categories

Ralph Caputo (D)*,  Annette Chaparro (D)*,  Angela Mcknight (D)*,  Nancy Muñoz (R)*,  John McKeon (D),  Shanique Speight (D),  Britnee Timberlake (D), 

Introduced, Referred to Assembly Housing Committee (on 01/14/2020)