Bill

Bill > A3994


NJ A3994

NJ A3994
Enhances oversight of enforcement of municipal rent control and rent leveling ordinances; establishes Rental Control Ombudsman in DCA; appropriates $4 million.


summary

Introduced
01/13/2026
In Committee
01/13/2026
Crossed Over
Passed
Dead

Introduced Session

2026-2027 Regular Session

Bill Summary

This bill is intended to enhance oversight of the enforcement of municipal rent control and rent leveling ordinances. The bill provides that, if a municipal code contains a rent control or rent leveling ordinance, then, in order to address complaints of violations of the ordinance, the municipality is to be required to maintain:· one or more reasonable procedures for investigating and addressing complaints; and· mandatory timelines for providing initial responses to written complaints, and completing investigations. If a municipality does not comply with these requirements, there is to be a rebuttable presumption of nonenforcement. The bill expressly permits a residential tenant who is adversely affected by a municipality that fails to enforce a rent control or rent leveling ordinance in violation of the bill, to bring an action for relief in Superior Court to seek enforcement of the ordinance, if more than 30 days have elapsed since the municipality:· has missed a deadline required by the provisions of the bill; or · has failed to respond for more than 30 days to an enforcement-related request submitted by the tenant. In response to an action initiated pursuant to the bill, the court may order, as appropriate in the interest of justice, compliance with the ordinance, treble damages for rent overcharges, a rent rollback, reasonable attorney's fees and costs, and may impose a civil penalty of up to $2,000 per affected dwelling unit. This private right of action is to exist independent of, and in addition to, any enforcement by the municipality, and is not to be subject to any administrative exhaustion requirement. A tenant association representing the rights of a group of tenants is to be afforded the same ability as an individual tenant pursuant to this bill to bring an action for relief in Superior Court, on behalf of a group of tenants. If a municipality has exhibited a pattern of willful non-enforcement of a rent control or rent leveling ordinance, then the Attorney General is to be authorized to bring an action in the Superior Court to remedy this failure. Following consideration of the action if a court determines that a pattern of willful nonenforcement exists, the court may appoint a special master to oversee its enforcement, order the municipality to pay a civil penalty to the affected tenants, and issue other relief that the court determines appropriate in the interest of justice. The bill provides that a group of 10 or more residential tenants, if each are adversely affected by a municipality's non-enforcement of a rent control or rent leveling ordinance, the group of tenants is to be permitted to petition the Attorney General to investigate municipal nonenforcement of the ordinance. If the Attorney General receives a petition from a group of tenants, or from the Rent Control Ombudsman, to investigate municipal nonenforcement, the Attorney General is required to respond within 60 days. The bill establishes in the Department of Community Affairs a Rent Control Ombudsman. The bill directs the Commissioner of Community Affairs to appoint the Rent Control Ombudsman, who is to serve at the pleasure of the commissioner. The Rent Control Ombudsman is to receive complaints of municipal non-enforcement of a municipal rent control or rent leveling ordinance, and refer matters, as appropriate, to the Attorney General. The bill also directs the Rent Control Ombudsman to issue one or more public reports on an annual basis for the purposes of communicating the activities of the ombudsman's office, and identifying municipalities with patterns of non-enforcement. The Rent Control Ombudsman is to possess authority to subpoena documents and testimony in furtherance of investigations. The bill provides that statute of limitations that may be established in a municipal rent control or rent leveling ordinance to prevent a penalty for a violation of the ordinance prior to a certain date, is to be tolled for any period during which the landlord has not been in compliance with any requirement of the ordinance to provide any documentation that may be required to demonstrate compliance with the ordinance. The tolling provision established by the bill is to apply to a claim, unless the claim has been dismissed or finally adjudicated prior to the effective date of this bill. The bill requires an appropriation of $4 million from the General Fund, of which $2 million is to be provided to the Attorney General to support the activities required of the Attorney General pursuant to the bill, and $2 million is to be provided to the Department of Community Affairs to support the establishment and operation of the Office of the Rent Control Ombudsman. The bill is to take effect immediately.

AI Summary

This bill enhances oversight of municipal rent control and rent leveling ordinances by requiring municipalities with such ordinances to establish reasonable procedures and mandatory timelines for investigating and responding to tenant complaints, with a failure to comply creating a rebuttable presumption of non-enforcement. If a municipality misses deadlines or fails to respond to tenant requests for over 30 days, affected tenants can sue in Superior Court for enforcement, potentially seeking rent overcharge damages, rent rollbacks, and attorney fees, with tenant associations also having the right to sue on behalf of groups of tenants. The bill also authorizes the Attorney General to sue municipalities exhibiting a pattern of willful non-enforcement, potentially leading to a court-appointed special master. Furthermore, it establishes a Rent Control Ombudsman within the Department of Community Affairs (DCA) to receive complaints, refer matters to the Attorney General, and issue annual reports on non-enforcement patterns, possessing subpoena power. The bill also tolls statutes of limitations for landlords who fail to provide required documentation of compliance. Finally, it appropriates $4 million, with $2 million for the Attorney General and $2 million for the DCA to establish and operate the Ombudsman's office.

Committee Categories

Housing and Urban Affairs

Sponsors (1)

Last Action

Introduced, Referred to Assembly Housing Committee (on 01/13/2026)

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