Prohibits landlord from considering certain actions in tenant screening; clarifies that rent receivership action does not require rent deposit and may be based on implied warranty of habitability.

A1303

ASSEMBLY, No. 1303

STATE OF NEW JERSEY

222nd LEGISLATURE

�

PRE-FILED FOR INTRODUCTION IN THE 2026 SESSION

Sponsored by:

Assemblyman CODY D. MILLER

District 4 (Atlantic, Camden and Gloucester)

Co-Sponsored by:

Assemblyman Hutchison

SYNOPSIS

���� Prohibits landlord from considering certain actions
in tenant screening; clarifies that rent receivership action does not require
rent deposit and may be based on implied warranty of habitability.

CURRENT VERSION OF TEXT

���� Introduced Pending Technical Review by Legislative
Counsel.

��

An Act

concerning residential tenant protections,
supplementing chapter 42 of Title 2A of the New Jersey Statutes, and amending
P.L.1971, c.224.

����
Be It
Enacted
by the Senate and General Assembly of
the State of New Jersey:

���� 1.��� (New section)� a.� When
evaluating a prospective residential tenant, a landlord shall not consider a
housing court record unless:

���� (1)�� the applicable case
resulted in a judgment for possession;

���� (2)�� the decision in the case
is not under appeal; and

���� (3)�� the judgment for
possession was entered no more than three years prior to the prospective tenant�s
rental application.

���� b.��� If a landlord rejects a
rental application from a prospective tenant, approves a rental application
with conditions that exceed reasonable conditions routinely imposed upon a
prospective tenant, or takes any other adverse action on a rental application,
the landlord shall provide a written notice of the adverse action to the
prospective tenant that states the reasons for the adverse action.� The adverse
action notice shall disclose any screening information about the prospective
tenant accessed by the landlord, and shall append any screening report or
documentation about the prospective tenant that was accessed by the landlord.

���� c.���� A landlord who violates
subsection a. or b. of this section shall, in addition to any other penalty
provided by law, be liable for a penalty of not less than $1,000 for the first
offense, and not less than $5,000 for the second and each subsequent offense,
plus reasonable attorney fees.

���� d.��� As used in this section,
�housing court record� means any record containing information regarding a past
or current action brought by or against a landlord or tenant in the Superior
Court, Law Division, Special Civil Part, and any record of the filing of the action,
including but not limited to:

���� (1)�� information maintained
by a court in any form in connection with a case or judicial proceeding,
including but not limited to pleadings, motions, briefs and their respective
attachments, evidentiary exhibits, indices, calendars, and dockets;

���� (2)�� order, judgment,
opinion, or decree related to a judicial proceeding;

���� (3)�� official transcript or
recording of a public judicial proceeding, in any form;

���� (4)�� information in a
computerized case management system created or prepared by the court in
connection with a case or judicial proceeding; and

���� (5)�� record made or maintained
by a judicial officer.

���� 2.��� Section 3 of P.L.1971,
c.224 (C.2A:42-87) is amended to read as follows:

���� 3.��� A proceeding by a public
officer, tenant, or tenants of a dwelling for a judgment directing the deposit
of rents into court and their use for the purpose of remedying conditions in
substantial violation of the standards of fitness for human habitation established
under the State or local housing codes or regulations
or the implied
warranty of habitability,
or a proceeding by a public officer, a tenant
whose utility service has been diverted or a utility company for a judgment
directing the deposit of rents into court and their use for correcting any
wrongful diversion of utility service in a dwelling may be maintained in a
court of competent jurisdiction.� The place of trial of the proceeding shall be
within the county in which the real property or a portion thereof from which
the rents issue is situated.� In cases involving real property located in
municipalities in counties of the first class that have established full-time
municipal housing courts, the proceedings may be brought in the municipal
housing court of the municipality in which the property is located.

(cf: P.L.1986, c.125, s.4)

���� 3.��� Section 4 of P.L.1971,
c.224 (C.2A:42-88) is amended to read as follows:

���� 4.��� a.� The public officer
or any tenant occupying a dwelling may maintain a proceeding as provided in
[
this act
]

P.L.1971,
c.224 (C.2A:42-85 et seq.)
, upon the grounds that there exists in such
dwellings or in housing space thereof a lack of heat or of running water or of
light or of electricity or of adequate sewage disposal facilities, or any other
condition or conditions in substantial violation of the standards of fitness
for human habitation established under the State or local housing or health
codes or regulations
or the implied warranty of habitability,
or any
other condition dangerous to life, health or safety.

���� b.��� A public officer, a
tenant whose utility service has been diverted or a utility company providing
electric, gas or water utility service to a dwelling may maintain a proceeding
as provided in
[
this
act
]

P.L.1971,
c.224 (C.2A:42-85 et seq.)
upon the grounds (1) that there exists in these
dwellings or in housing space thereof a wrongful diversion of electric, gas or
water utility service by the owner or owners or other party from a tenant of
the dwelling without the consent of the tenant, or the use by the owner or
other party in the dwelling without the tenant's consent of electric, gas or
water utility service that is being charged to the tenant, and (2) that the
owner has been notified by either a public officer, a tenant whose utility
service has been diverted or a utility company of the wrongful diversion or
unconsented use by certified mail and has failed to take necessary action to
correct or eliminate the wrongful diversion or unconsented use within 30 days
of receipt of such notice.� If an owner fails or refuses to accept a notice
sent by certified mail, the date of receipt shall be deemed to be the third day
after mailing, provided the notice was sent to the owner at an address to which
the owner's utility bills or municipal tax bills are sent.

(cf: P.L.1985, c.411, s.4)

���� 4.��� Section 5 of P.L.1971,
c.224 (C.2A:42-89) is amended to read as follows:

���� 5.��� a.� A proceeding
prescribed by
[
this
act
]

P.L.1971,
c.224 (C.2A:42-85 et seq.)
shall be commenced by the service of a petition
and notice of a petition.� A notice of petition may be issued only by a judge
or a clerk of the court.

���� b.��� Notice of the proceeding
shall be given to the nonpetitioning tenant occupying the dwelling by affixing
a copy of the petition upon a conspicuous part of the subject dwelling.

����
c.���� A deposit of rent
shall not be required to commence a proceeding prescribed by P.L.1971, c.224 (C.2A:42-85
et seq.).

(cf: P.L.1971, c.224, s.5)

���� 5.��� Section 6 of P.L.1971,
c.224 (C.2A:42-90) is amended to read as follows:

���� 6.��� The petition shall:

���� a.���� Set forth material
facts showing that there exists in such dwelling or any housing space thereof
one or more of the following: (1) a lack of heat or of running water or of
light or electricity or of adequate sewage disposal facilities; (2) a wrongful
diversion of electric, gas, or water utility service by the owner or other
party from the tenant of the dwelling without the consent of the tenant; (3)
the use by the owner or other party in the dwelling without the tenant's
consent of electric, gas, or water utility service that is being charged to the
tenant; (4) any other condition or conditions in substantial violation of the
standards of fitness for human habitation established under the State or local
housing or health codes or regulations
or the implied warranty of
habitability
; or (5) any other condition dangerous to life, health or
safety.

���� b.��� Set forth that the facts
shown in subsection a. of this section have been brought to the attention of
the owner or any individual designated by him as the manager of said dwelling
and that he has failed to take any action thereon within a reasonable period.

���� c.���� Set forth that the
petitioner is a tenant of the subject dwelling or is the public officer of the
municipality in which the subject dwelling is located, or, in a case involving
wrongful diversion or unconsented use of utility services, that the petitioner
is a public officer, a tenant whose utility service has been wrongfully
diverted or a utility company providing utility services to the dwelling.

���� d.��� Set forth a brief
description of the nature of the work required to remove or remedy the
condition and an estimate as to the cost thereof.

���� e.���� Set forth the amount of
rent due from each petitioning tenant, if any, monthly.

���� f.���� State the relief
sought.

(cf: P.L.1985, c.411, s.5)

���� 6.��� This act shall take
effect immediately.

STATEMENT

���� This bill would prohibit a
landlord from considering certain landlord-tenant case histories when screening
tenants.� The bill also would clarify that tenants may pursue a rent
receivership action against a landlord without first having to make a rent
deposit with the court and that the action may be made on the ground that the
implied warranty of habitability has been violated.� These measures would serve
to protect prospective tenants from being unfairly turned away from rental
housing due to prior landlord-tenant case histories, and would make it easier
for tenants to pursue relief in the courts if the rental housing is not fit for
habitation.

���� With respect to tenant
screening, the bill provides that a landlord may not consider a landlord-tenant
court record unless: (1) the case resulted in a judgment for possession; (2)
the decision in the case is not under appeal; and (3) the judgment for
possession was entered no more than three years prior to the prospective
tenant�s rental application.� If a landlord takes any adverse action on a
rental application, the landlord would be required to provide a written notice
of the adverse action to the prospective tenant that states the reasons for the
adverse action, and the notice would have to disclose and contain any screening
information about the prospective tenant accessed by the landlord.� A landlord
that violates either of these provisions of the bill would be liable for a
penalty of not less than $1,000 for the first offense, and not less than $5,000
for the second and each subsequent offense.

���� With respect to rent
receivership actions, the bill clarifies that a tenant is not required to place
a rent deposit with a court in order to initiate the action.� The bill also would
make explicit that this action may be based on a claim that the implied
warranty of habitability has been violated.� The implied warranty of
habitability is a court-created doctrine that requires a landlord to ensure
rental housing is fit for human habitation and for the uses reasonably intended
by the parties, and that the occupants are not subject to conditions that are
dangerous, hazardous, or detrimental to their life, health, or safety.