Bill > A5269

Introduced Session

This bill establishes a Rent Control Enforcement Unit (RCEU) in the Department of Community Affairs (DCA), and authorizes a residential tenant to petition the RCEU to investigate and modify a rent increase, or proposed rent increase, that the tenant believes is in violation of a local rent restriction. As used in the bill, a "local rent restriction" refers to an ordinance, rule, or regulation adopted by the governing body of a municipality, or administrative entity thereof, that limits rent increases on residential tenants. A "local rent restriction" also includes, but is not limited to, a rent increase limit on low- or moderate-income housing established by an administrative agent in compliance with the "Fair Housing Act," P.L.1985, c.222 (C.52:27D-301 et al.). The bill authorizes the RCEU to require a residential tenant to exhaust other avenues for an administrative challenge, made available by the municipality or administrative entity thereof that administers the local rent restriction, before the tenant petitions the RCEU. The bill provides that the director of the RCEU is to be appointed by the Commissioner of Community Affairs (commissioner), to serve at the pleasure of the commissioner. The bill directs the RCEU to receive petitions to investigate violations of local rent restrictions, initiated by tenants, and enforce penalties as appropriate. A penalty enforced by the RCEU for a violation of a local rent restriction may consist of any combination of:· a mandatory rent reduction to an amount as low as the lowest rental rate charged for previous year;· a penalty in an amount of up to four months of rental payments, to be retained by the department to provide for continued enforcement of the bill; or· authorization for the tenant to prematurely terminate the lease. The bill requires the RCEU to provide and administer a dedicated helpline, and a portal on the department's Internet website, to provide assistance to tenants and permit the reporting of violations of local rent restrictions. The bill establishes a nonlapsing fund for penalties retained by the department, and appropriates $3 million from the General Fund to the fund to defray the costs associated with establishing the RCEU. The bill specifies that the Legislature is to annually appropriate the funding necessary for the purposes of the bill to the RCEU, when taking into account the amounts anticipated to be annually collected in penalties. The bill directs the commissioner to adopt rules and regulations necessary to effectuate the purposes of the bill on or before the first day of the fifth month following enactment of the bill. The bill takes effect on the first day of the fifth month following enactment, except that the commissioner is to take such anticipatory actions as are necessary to comply with the provisions of the bill.

AI Summary

Committee Categories

Carmen Morales (D)*, 

Introduced, Referred to Assembly Housing Committee (on 02/10/2025)

Official Document