Bill > A3592

Introduced Session

This bill requires, along with the existing rent increase notice requirements, that a landlord provide a written explanation for a rent increase, which would: (1) describe why the rent increase is not unconscionable; (2) confirm that the increase complies with municipal ordinances, and other applicable laws; and (3) list any expenses associated with the tenant's unit and common areas of the property that have contributed to the need for the rent increase. Additionally, the bill also requires that if the tenant is a resident of a senior citizen housing project, which refers to a building with three or more dwelling units, intended for, and solely occupied by, senior citizens, then the written notice of increase in rent is to include: (a) the contact information of an individual authorized to speak to the tenants about the proposed rent increase; and (b) a statement, provided in the bill, in a bold typeface in a font size no less than one point larger than the point size of the rest of the written statement or 11 points, whichever is larger. The bill also adjusts the underlying statutory language concerning notice requirements prior to rent increases to clarify that those notices have to be in writing, and establishes a penalty for a landlord's violation of the bill of $500, enforceable: (1) in an action brought by the Commissioner of Community Affairs or Attorney General; and (2) in a separate cause of action brought by and at the discretion of the tenant, who may recover the $500 penalty, in addition to reasonable attorney's fees or expenses. The bill would take effect on the first day of the third month next following enactment, and would apply to any notice of a rent increase provided to a tenant by a landlord on or after that date. The cost of housing in New Jersey, including rental housing, constitutes one of the most substantial financial challenges faced by residents of this State. Due to the housing shortage, in addition to the disparity in bargaining power between residential tenants and their landlords, a significant number of New Jersey residents struggle to afford rent and dispute rent increases by their landlords. New Jersey law requires a landlord to provide a written notice to the tenant whenever the landlord intends to increase rent, and a written notice to quit, or terminate, the tenancy at the end of the lease term. State law has not set forth a precise limit on rent increases, but has instead required that a rent increase not be "unconscionable," which may be asserted as a defense to an eviction by a residential tenant pursuant to subsection f. of section 2 of P.L.1974, c.49 (C.2A:18-61.1). The term "unconscionable" is defined on a case-by-case basis by the courts using the multi-factor test set forth by Fromet Properties, Inc. v. Buel, 294 N.J. Super. 601 (App. Div. 1996), which requires, among the other factors, a court to look at a landlord's expenses and profitability, and determine whether the rent increase would "shock the conscience" of a reasonable person. Due to the summary nature of landlord-tenant proceedings, limited discovery, case-by-case determinations of unconscionability, disparity of bargaining power, and limited precedent setting forth a bright line standard for unconscionable rent increases, residential tenants are limited in their ability to collect sufficient information in advance of the landlord's increase or, if necessary, eviction proceedings, and dispute a rent increase. Therefore, to protect the public health, housing stability, financial security, and well-being of residential tenants, it is in the public interest to require a landlord to provide a tenant written explanation for a rent increase and provide certain, specific notices.

AI Summary

Committee Categories

Cody Miller (D)*,  Dan Hutchison (D), 

Introduced, Referred to Assembly Housing Committee (on 02/08/2024)

Official Document