Bill > S2341

Introduced Session

This bill would authorize the Governor to restrict rent increases on certain commercial tenants during emergency circumstances, and would enhance similar existing authority over rent increases on residential tenants. Under current law, whenever a state of emergency is declared by the Governor and is in effect, the Governor may issue a "Notice of Rent Protection Emergency" ("NRPE") to prohibit certain large rent increases on residential tenants in the area of the emergency, if it is determined that unconscionable rental practices are likely to occur. This bill would expand these powers by authorizing the Governor to issue the NRPE during a public health emergency, and apply rent increase restrictions on commercial properties rented by certain retail businesses, in addition to residential properties. Under existing law, a residential landlord would violate an NRPE issuance if the proposed percentage increase in rent is greater than twice the rate of inflation as indicated by increases in the consumer price index for the immediately preceding nine-month period. This bill would allow the Governor to apply the same restrictions on rent increases on commercial properties rented by small retail businesses. However, under the bill, if expressly provided in the NRPE, the Governor would be able to prohibit any rent increase on residential properties, or commercial properties rented by small retail businesses, regardless of the rate of inflation. Regarding small retail businesses, these rent protections would specifically apply to those that employed fewer than 20 people immediately prior to the emergency declaration, and that function primarily to serve consumers directly in the distribution of food, beverages, goods, or services, at one or more physical locations. Rent restrictions under the NRPE would expire either upon expiration of the state of emergency or public health emergency, or upon the rescission of the state of emergency, the public health emergency, or the NRPE itself. A violation of the provisions of an NRPE would constitute a violation of the New Jersey consumer fraud act. The Division of Consumer Affairs would hold investigative and enforcement authority regarding NRPE declarations. The bill provides the Director of the Division of Consumer Affairs with the authority to promulgate any necessary rules and regulations regarding any NRPE declarations.

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Linda Greenstein (D)*,  Nick Scutari (D)*,  Samuel Thompson (D)*,  Joe Vitale (D)*,  Dawn Addiego (D),  Troy Singleton (D), 

Received in the Assembly, Referred to Assembly Housing Committee (on 04/13/2020)