Bill > S1638

Introduced Session

This bill would expand the authority of a municipality to inspect, license, and regulate the rental of residential real property. Under current law, a municipality has the authority to license and regulate commercial and residential leases of less than 175 days. This bill would authorize municipalities to inspect, license, and regulate rentals of residential real property regardless of the duration of the lease agreement. The bill would maintain the restriction on the licensure of commercial property to leases of a term of less than 175 days. The power of a municipality to license and regulate residential rental property under this bill includes the power to inspect rental property as a condition of licensure. Under the bill, a municipality cannot inspect residential rental property more than once per calendar year, except when prompted by complaints, evidence of code violations, or patently unsound conditions on the property. In addition, the bill would require property owners to register the property with the municipality at the time the municipality issues a license. Under the bill, no additional registration will be required for a licensed property for which a registration certificate with current ownership information has been filed with either the clerk of the municipality or, in the case of a multiple dwelling, with the Bureau of Housing Inspection in the Department of Community Affairs. The municipality would have the authority to charge fees for the license, but the fees must be dedicated to meeting the costs of implementing and enforcing the licensing scheme and cannot be used for any other purpose. This bill would be effective immediately and retroactive to August 6, 2015. The bill, however, would prohibit municipalities from collecting fees for licenses issued prior to the effective date of this bill, which the municipality has not yet collected. Municipalities would not be responsible for returning any fees collected prior to the effective date of this bill.

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Nilsa Cruz-Perez (D)*, 

Introduced in the Senate, Referred to Senate Community and Urban Affairs Committee (on 02/13/2020)