Bill

Bill > S2762


NJ S2762

NJ S2762
Expands municipal authority to license and inspect residential rental property.


summary

Introduced
02/15/2024
In Committee
02/15/2024
Crossed Over
Passed
Dead
01/12/2026

Introduced Session

2024-2025 Regular Session

Bill Summary

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 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.

AI Summary

This bill expands the authority of municipalities to license and regulate residential rental properties, allowing them to do so regardless of the lease duration, whereas current law limits this power to leases shorter than 175 days. Under this bill, municipalities can inspect rental properties as a condition of licensure, but inspections are limited to once per year unless there are complaints, evidence of code violations, or unsafe conditions. Property owners will need to register their rental properties with the municipality upon licensing, though no additional registration is required if current ownership information has already been filed with the municipality or the Bureau of Housing Inspection in the Department of Community Affairs. Municipalities can charge fees for these licenses, but these fees must be used solely for the costs of implementing and enforcing the licensing program. The bill is effective immediately and retroactive to August 6, 2015, but prohibits municipalities from collecting fees for licenses issued before the effective date if those fees haven't already been collected, and they are not required to refund fees collected prior to this date.

Committee Categories

Housing and Urban Affairs

Sponsors (2)

Last Action

Introduced in the Senate, Referred to Senate Community and Urban Affairs Committee (on 02/15/2024)

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