Bill > S2436

Introduced Session

This bill would establish a limitation on rent increases for certain units leased to senior citizen tenants and financed by the New Jersey Housing and Mortgage Finance Agency (HMFA). The bill prohibits a landlord--as defined in the bill, including a sublessor--of a covered dwelling unit, from increasing the rent over the course of a 12-month period by more than two percent, or by more than the percent change in the cost of living, whichever is greater. The bill defines a "covered dwelling unit" as a structure, or a room or a group of rooms within a structure that: (1) is offered for rent by a landlord for residential purposes; (2) is rented to a senior citizen for their principal place of residence; and (3) has been, presently is, or is to be funded by a loan, bond, trust fund, subsidy, or any other program or financial assistance from the HMFA. The bill provides that if the landlord increases the rent in excess of the bill's limitation, the applicable rent for the duration of the present lease term, or subsequent lease term if the present term is month-to-month, is to be the rent for the year or term preceding the violation. The bill's limitations would also function in addition to the existing prohibition on unconscionable rent increases pursuant the Anti-Eviction Act, P.L.1974, c.49 (C.2A:18-61.1 et seq.). A violation of the bill would: (1) constitute an unlawful practice pursuant to the New Jersey Consumer Fraud Act, P.L.1960, c.39 (C.56:8-1 et seq.) (CFA); (2) subject a landlord to all applicable penalties prescribed pursuant to the CFA; (3) permit a tenant to petition the court to terminate a lease in violation of the bill, and to recover reasonable attorney's fees or expenses; (4) subject a landlord to a penalty of $500 for a first offense by the landlord, and $1,000 for a second and any subsequent offense, in a separate cause of action brought by the tenant, in addition to reasonable attorney's fees or expenses; and (5) permit a tenant to assert the violation as a defense to an eviction as an unconscionable rent increase. The bill would only preempt other laws regarding rent control, as prescribed in the bill, that result in a higher permitted rent increase over the course of a 12-month period. Further, the bill would take effect on the first day of the third month following the date of enactment, and apply to tenancies commencing on or after the effective date of the bill, except that the Executive Director of the HMFA would be permitted to take anticipatory action necessary to effectuate the provisions of this bill.

AI Summary

Committee Categories

Angela Mcknight (D)*,  Brian Stack (D)*, 

Introduced in the Senate, Referred to Senate Community and Urban Affairs Committee (on 01/29/2024)

Official Document