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Bill > A3997
NJ A3997
NJ A3997Prohibits class action waivers in residential rental agreements for claims arising from violations of rent control laws.
summary
Introduced
01/13/2026
01/13/2026
In Committee
01/13/2026
01/13/2026
Crossed Over
Passed
Dead
Introduced Session
2026-2027 Regular Session
Bill Summary
This bill prohibits class action waivers in residential rental agreements for claims arising from violations of rent control laws. Rent control ordinances serve a vital public purpose by preserving affordable housing, preventing displacement, and ensuring fair treatment of tenants. The efficient enforcement of rent control laws requires access to collective legal remedies as individual claims for rent overcharges are often financially impractical for an individual tenant. The bill deems any provision in a residential rental agreement that waives, limits, or restricts a tenant's right to participate as a class representative or class member in a class action suit arising from violations of rental control laws as void and unenforceable. Any purported waiver of rights established by this bill is to be deemed void and unenforceable. This bill establishes that the inclusion of a class action waiver within a rental agreement as prima facie evidence of a violation of the New Jersey consumer fraud act (CFA), P.L.1960, c.39 (C.56:8-1 et seq.). A tenant that is subjected to a class action waiver, as prohibited by this bill, is entitled to several remedies, including, but not limited to, a declaratory judgment that the waiver be void and unenforceable, an injunction prohibiting enforcement of the waiver; actual damages; and reasonable attorney's fees and costs. In addition to a potential CFA violation for certain violations, a landlord found to be in violation of this bill is to be liable to a penalty of $1,000 per affected dwelling unit. These remedies are cumulative and in addition to other remedies available under State and federal law. This bill should not be construed to invalidate class action waivers in contexts unrelated to rent control enforcement, in recognition of the New Jersey Supreme Court's decision in Pace v. Hamilton Cove, 255 N.J. 283 (2024). This bill would take effect immediately but would apply retroactively to all rental agreements in effect on or after the effective date of this bill, including violations arising from violations that occurred before the effective date.
AI Summary
This bill prohibits landlords from including clauses in residential rental agreements that prevent tenants from participating in class action lawsuits concerning violations of rent control laws, which are designed to ensure affordable housing and fair treatment. Any such clause, known as a class action waiver, will be considered void and unenforceable, even if it was signed before the bill's effective date or in a lease addendum. The bill establishes that including such a waiver is considered prima facie evidence, meaning it's sufficient evidence to prove a violation of the New Jersey Consumer Fraud Act (CFA), a law designed to protect consumers from deceptive practices. Tenants affected by these prohibited waivers can seek legal remedies, including a court declaration that the waiver is invalid, an order to stop its enforcement, compensation for damages, and reimbursement for legal costs. Landlords who violate this bill will face a $1,000 penalty for each affected rental unit, and these penalties are in addition to any other legal remedies available. The bill clarifies that this prohibition only applies to rent control matters and does not affect class action waivers in other contexts, and it applies retroactively to all rental agreements in effect on or after its immediate effective date.
Committee Categories
Housing and Urban Affairs
Sponsors (1)
Last Action
Introduced, Referred to Assembly Housing Committee (on 01/13/2026)
Official Document
bill text
bill summary
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bill summary
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bill summary
| Document Type | Source Location |
|---|---|
| State Bill Page | https://www.njleg.state.nj.us/bill-search/2026/A3997 |
| BillText | https://pub.njleg.gov/Bills/2026/A4000/3997_I1.HTM |
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