Authorizes imposition of additional fines for overcrowding.

A152

ASSEMBLY, No. 152

STATE OF NEW JERSEY

222nd LEGISLATURE

�

PRE-FILED FOR INTRODUCTION IN THE 2026 SESSION

Sponsored by:

Assemblywoman DAWN FANTASIA

District 24 (Morris, Sussex and Warren)

Assemblyman MICHAEL INGANAMORT

District 24 (Morris, Sussex and Warren)

SYNOPSIS

���� Authorizes imposition of additional fines for
overcrowding.

CURRENT VERSION OF TEXT

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

��

An Act

concerning the overcrowding of certain dwelling units, supplementing and
amending chapter 18 of Title 2A of the New Jersey Statutes, and amending
R.S.40:49-5.

����
Be It Enacted

by the Senate and General Assembly of
the State of New Jersey:

���� 1.��� (New section)��� a.�� The
governing body of a municipality may adopt an ordinance authorizing the
issuance of summonses upon the owner-landlord and the tenants of a residential
rental unit in a building containing four or fewer residential rental units
alleging a zoning or housing code violation for illegal occupancy resulting in
overcrowding.

���� b.��� The ordinance may
authorize the imposition of a fine upon a determination of illegal occupancy
resulting in overcrowding, in addition to any other fine provided by law, in
the amount of up to $2,500 for a first violation, $5,000 for a second violation
and $10,000 for each subsequent violation.

���� c.���� Fines authorized
pursuant to subsection b. of this section may be imposed upon the
owner-landlord or the tenants, or both, dependent upon whether the conduct of
the owner-landlord or the tenants, or both, was the primary cause for the
illegal occupancy resulting in overcrowding, provided the provisions of
subsection h. of this section have been met.� In order for the conduct of the
tenants to be deemed the primary cause for the illegal occupancy, it must be
established (1) that the tenant signed a lease or was provided a written copy
of the rental policy in which the number of allowed occupants was specified,
(2) that the number of allowed occupants was within the standards established
by the applicable code requirements, or rental policy if a number was specified
in the lease, and (3) that any additional occupants in excess of the number of
occupants specified became residents of the rental unit without the expressed
consent of the owner-landlord.

���� d.��� Owner-occupied property
shall be exempt from the fines authorized pursuant to subsection b. of this
section, except where the owner-landlord of the owner-occupied dwelling is
renting rooms or apartments in violation of local ordinances or State law.

���� e.���� An ordinance adopted
pursuant to subsection a. of this section shall provide for the issuance of a
notice of violation with a period of time to abate the alleged violation.� In
the event the violation is not abated within the period of time provided, a summons
against the owner-landlord or the tenant, or both, may be issued.

���� f.���� Notwithstanding the
provisions of subsection e. of this section, if an owner-landlord has issued a
notice to cease to

eliminate overcrowding or
unauthorized occupancy of a residential unit that is the subject of a notice of
violation, and the owner-landlord files a copy of the notice to cease and an
affidavit of good faith with the municipality, no summons shall issue against
an owner-landlord for six months from the date of service of the notice to
cease.� At the end of that six-month period, if the overcrowding or
unauthorized occupancy of the residential unit has not been eliminated, and no
eviction proceeding is pending, then a summons may be issued against the
owner-landlord.

���� g.��� The service of a notice
to cease to eliminate overcrowding or unauthorized occupancy no more than six
months prior to the service of a summons or notice of violation under this
section, whether or not the owner-landlord prevails, shall serve as a defense
by the owner-landlord to any summons, notice, violation, action or proceeding under
this section against the owner-landlord before any court or administrative
agency.

���� h.��� A fine shall not be
imposed upon an owner-landlord or a tenant unless the parties have been
afforded an opportunity for a hearing, before a court of competent
jurisdiction, allowing for independent determinations of the existence of
overcrowding and the responsibility for the overcrowding.�� In order for it to
be determined that a tenant is responsible for the overcrowding, it must be
established (1) that the tenant signed a lease or was provided a written copy
of the rental policy in which the number of allowed occupants was specified,
(2) that the number of allowed occupants was within the standards established
by the applicable code requirements, or rental policy if a number was specified
in the lease, and (3) that any additional occupants in excess of the number of
occupants specified became residents of the rental unit without the expressed
consent of the owner-landlord. The municipal court and the Superior Court shall
have jurisdiction of proceedings for the enforcement of the fines provided by
this section.

���� i.���� This section shall not
apply to a seasonal rental unit.

���� j.���� For the purposes of
this section:

���� "affidavit of good
faith" means an owner-landlord's sworn statement that (1) the tenant
signed a lease or was provided a written copy of the rental policy in which the
number of intended occupants was specified, (2) that the number of allowed occupants
was within the standards established by the applicable code requirements or
rental policy, and (3) that any additional occupants in excess of the number of
occupants specified became residents of the rental unit without the consent of
the owner-landlord.

���� "applicable code
requirements" means standards governing the occupancy of housing space
adopted by the Department of Community Affairs pursuant to the State Housing
Code, promulgated pursuant to P.L.1966, c.168 (C.2A:42-74 et seq.) or the
"Hotel and Multiple Dwelling Law," P.L.1967, c.76 (C.55:13A-1 et
seq.).

���� "overcrowding" means
occupancy in excess of the standards governing the use and occupancy of housing
space and floor area adopted by the Department of Community Affairs pursuant to
the State Housing Code, promulgated pursuant to P.L.1968, c. 168 (C.2A:42-74 et
seq.), or the "Hotel and Multiple Dwelling Law," P.L.1967, c.76
(C.55:13A-1 et seq.).

���� "owner-landlord"
shall not include a mortgagee in possession through foreclosure.

���� "rental policy"
means any documents including, but not limited to, a lease agreement, rental
application, rules and regulations, or rules of conduct established by the
owner-landlord that creates maximum occupancy limits for the rental unit.

���� "seasonal rental
unit" means use or rental for a term of not more than 125 consecutive days
for residential purposes by a person having a permanent place of residence
elsewhere. "Seasonal rental unit" does not mean use or rental of living
quarters for seasonal, temporary or migrant farm workers in connection with any
work or place where work is being performed.� The owner-landlord shall have the
burden of proving that the use or rental of the residential property is
seasonal.

���� "second violation"
or "subsequent violation" for illegal occupancy resulting in
overcrowding shall be limited to those violations that are issued within
five-years of a prior violation, are new and are a result of distinct and
separate zoning or code enforcement activities, and shall not include any
continuing violations for which citations are issued by a zoning or code
enforcement agent during the time period required for summary dispossession
proceedings to conclude if the owner has initiated eviction proceedings in a
court of proper jurisdiction.

���� 2.��� Section 2 of P.L.1974,
c.49 (C.2A:18-61.1) is amended to read as follows:

���� 2.��� No lessee or tenant or
the assigns, under-tenants or legal representatives of such lessee or tenant
may be removed by the Superior Court from any house, building, mobile home or
land in a mobile home park or tenement leased for residential purposes, other
than (1) owner-occupied premises with not more than two rental units or a
hotel, motel or other guest house or part thereof rented to a transient guest
or seasonal tenant; (2) a dwelling unit which is held in trust on behalf of a
member of the immediate family of the person or persons establishing the trust,
provided that the member of the immediate family on whose behalf the trust is
established permanently occupies the unit; and (3) a dwelling unit which is
permanently occupied by a member of the immediate family of the owner of that
unit, provided, however, that exception (2) or (3) shall apply only in cases in
which the member of the immediate family has a developmental disability, except
upon establishment of one of the following grounds as good cause:

���� a.���� The person fails to pay
rent due and owing under the lease whether the same be oral or written;
provided that, for the purposes of this section, any portion of rent unpaid by
a tenant to a landlord but utilized by the tenant to continue utility service to
the rental premises after receiving notice from an electric, gas, water or
sewer public utility that such service was in danger of discontinuance based on
nonpayment by the landlord, shall not be deemed to be unpaid rent.

���� b.��� The person has continued
to be, after written notice to cease, so disorderly as to destroy the peace and
quiet of the occupants or other tenants living in said house or neighborhood.

���� c.���� The person has
willfully or by reason of gross negligence caused or allowed destruction,
damage or injury to the premises.

���� d.��� The person has
continued, after written notice to cease, to substantially violate or breach
any of the landlord's rules and regulations governing said premises, provided
such rules and regulations are reasonable and have been accepted in writing by
the tenant or made a part of the lease at the beginning of the lease term.

���� e.���� (1)�� The person has
continued, after written notice to cease, to substantially violate or breach
any of the covenants or agreements contained in the lease for the premises
where a right of reentry is reserved to the landlord in the lease for a
violation of such covenant or agreement, provided that such covenant or
agreement is reasonable and was contained in the lease at the beginning of the
lease term.

���� (2)�� In public housing under
the control of a public housing authority or redevelopment agency, the person
has substantially violated or breached any of the covenants or agreements
contained in the lease for the premises pertaining to illegal uses of controlled
dangerous substances, or other illegal activities, whether or not a right of
reentry is reserved to the landlord in the lease for a violation of such
covenant or agreement, provided that such covenant or agreement conforms to
federal guidelines regarding such lease provisions and was contained in the
lease at the beginning of the lease term.

���� f.���� The person has failed
to pay rent after a valid notice to quit and notice of increase of said rent,
provided the increase in rent is not unconscionable and complies with any and
all other laws or municipal ordinances governing rent increases.

���� g.��� The landlord or owner
(1) seeks to permanently board up or demolish the premises because he has been
cited by local or State housing inspectors for substantial violations affecting
the health and safety of tenants and it is economically unfeasible for the
owner to eliminate the violations; (2) seeks to comply with local or State
housing inspectors who have cited him for substantial violations affecting the
health and safety of tenants and it is unfeasible to so comply without removing
the tenant; simultaneously with service of notice of eviction pursuant to this
clause, the landlord shall notify the Department of Community Affairs of the
intention to institute proceedings and shall provide the department with such
other information as it may require pursuant to rules and regulations.� The
department shall inform all parties and the court of its view with respect to
the feasibility of compliance without removal of the tenant and may in its
discretion appear and present evidence; (3) seeks to correct an illegal
occupancy because he has been cited by local or State housing inspectors or
zoning officers and it is unfeasible to correct such illegal occupancy without
removing the tenant; or (4) is a governmental agency which seeks to permanently
retire the premises from the rental market pursuant to a redevelopment or land
clearance plan in a blighted area. In those cases where the tenant is being
removed for any reason specified in this subsection,
except for overcrowding
where the tenant's own conduct was the primary cause of the overcrowding,

no warrant for possession shall be issued until P.L.1967, c.79 (C.52:31B-1 et
seq.) and P.L.1971, c.362 (C.20:4-1 et seq.) have been complied with.�
In
order for the conduct of a tenant to be deemed the primary cause for
overcrowding, it must be established (1) that the tenant signed a lease or was
provided a written copy of the rental policy in which the number of allowed
occupants was specified, (2) that the number of allowed occupants was within
the standards established by the applicable code requirements, or rental policy
if a number was specified in the lease, and (3) that any additional occupants
in excess of the number of occupants specified became residents of the rental
unit without the expressed consent of the owner-landlord.

����
For the purposes of this
subsection:

����
"applicable code
requirements" means standards governing the occupancy of housing space
adopted by the Department of Community Affairs pursuant to the State Housing
Code, promulgated pursuant to P.L.1966, c.168 (C.2A:42-74 et seq.) or the
"Hotel and Multiple Dwelling Law," P.L.1967, c.76 (C.55:13A-1 et
seq.), and

����
"rental policy"
means any documents including, but not limited to, a lease agreement, rental
application, rules and regulations, or rules of conduct established by the
owner-landlord that creates maximum occupancy limits for the rental unit.

���� h.��� The owner seeks to
retire permanently the residential building or the mobile home park from
residential use or use as a mobile home park, provided this subsection shall
not apply to circumstances covered under subsection g. of this section.

���� i.���� The landlord or owner
proposes, at the termination of a lease, reasonable changes of substance in the
terms and conditions of the lease, including specifically any change in the
term thereof, which the tenant, after written notice, refuses to accept; provided
that in cases where a tenant has received a notice of termination pursuant to
subsection g. of section 3 of P.L.1974, c.49 (C.2A:18-61.2), or has a protected
tenancy status pursuant to the "Senior Citizens and Disabled Protected
Tenancy Act," P.L.1981, c.226 (C.2A:18-61.22 et al.), or pursuant to the
"Tenant Protection Act of 1992," P.L.1991, c.509 (C.2A:18-61.40 et
al.), the landlord or owner shall have the burden of proving that any change in
the terms and conditions of the lease, rental or regulations both is reasonable
and does not substantially reduce the rights and privileges to which the tenant
was entitled prior to the conversion.

���� j.���� The person, after
written notice to cease, has habitually and without legal justification failed
to pay rent which is due and owing.

���� k.��� The landlord or owner of
the building or mobile home park is converting from the rental market to a
condominium, cooperative or fee simple ownership of two or more dwelling units
or park sites, except as hereinafter provided in subsection l. of this section.
Where the tenant is being removed pursuant to this subsection, no warrant for
possession shall be issued until this act has been complied with.� No action
for possession shall be brought pursuant to this subsection against a senior
citizen tenant or disabled tenant with protected tenancy status pursuant to the
"Senior Citizens and Disabled Protected Tenancy Act," P.L.1981, c.226
(C.2A:18-61.22 et al.), or against a qualified tenant under the "Tenant
Protection Act of 1992," P.L.1991, c.509 (C.2A:18-61.40 et al.), as long
as the agency has not terminated the protected tenancy status or the protected
tenancy period has not expired.

���� l.���� (1)�� The owner of a
building or mobile home park, which is constructed as or being converted to a
condominium, cooperative or fee simple ownership, seeks to evict a tenant or
sublessee whose initial tenancy began after the master deed, agreement
establishing the cooperative or subdivision plat was recorded, because the
owner has contracted to sell the unit to a buyer who seeks to personally occupy
it and the contract for sale calls for the unit to be vacant at the time of
closing.� However, no action shall be brought against a tenant under paragraph
(1) of this subsection unless the tenant was given a statement in accordance
with section 6 of P.L.1975, c.311 (C.2A:18-61.9);

���� (2)�� The owner of three or
less condominium or cooperative units seeks to evict a tenant whose initial
tenancy began by rental from an owner of three or less units after the master
deed or agreement establishing the cooperative was recorded, because the owner
seeks to personally occupy the unit, or has contracted to sell the unit to a
buyer who seeks to personally occupy it and the contract for sale calls for the
unit to be vacant at the time of closing;

���� (3)�� The owner of a building
of three residential units or less seeks to personally occupy a unit, or has
contracted to sell the residential unit to a buyer who wishes to personally
occupy it and the contract for sale calls for the unit to be vacant at the time
of closing.

���� m.�� The landlord or owner
conditioned the tenancy upon and in consideration for the tenant's employment
by the landlord or owner as superintendent, janitor or in some other capacity
and such employment is being terminated.

���� n.��� The person has been
convicted of or pleaded guilty to, or if a juvenile, has been adjudicated
delinquent on the basis of an act which if committed by an adult would
constitute an offense under the "Comprehensive Drug Reform Act of
1987," N.J.S.2C:35-1 et al., involving the use, possession, manufacture,
dispensing or distribution of a controlled dangerous substance, controlled
dangerous substance analog or drug paraphernalia within the meaning of that act
within or upon the leased premises or the building or complex of buildings and
land appurtenant thereto, or the mobile home park, in which those premises are
located, and has not in connection with his sentence for that offense either
(1) successfully completed or (2) been admitted to and continued upon probation
while completing, a drug rehabilitation program pursuant to N.J.S.2C:35-14; or,
being the tenant or lessee of such leased premises, knowingly harbors or
harbored therein a person who has been so convicted or has so pleaded, or
otherwise permits or permitted such a person to occupy those premises for
residential purposes, whether continuously or intermittently, except that this
subsection shall not apply to a person harboring or permitting a juvenile to
occupy the premises if the juvenile has been adjudicated delinquent upon the
basis of an act which if committed by an adult would constitute the offense of
use or possession under the said act. No action for removal may be brought
pursuant to this subsection more than two years after the date of the adjudication
or conviction or more than two years after the person's release from
incarceration whichever is the later.

���� o.��� The person has been
convicted of or pleaded guilty to, or if a juvenile, has been adjudicated
delinquent on the basis of an act which if committed by an adult would
constitute an offense under N.J.S.2C:12-1 or N.J.S.2C:12-3 involving assault,
or terroristic threats against the landlord, a member of the landlord's family
or an employee of the landlord; or, being the tenant or lessee of such leased
premises, knowingly harbors or harbored therein a person who has been so
convicted or has so pleaded, or otherwise permits or permitted such a person to
occupy those premises for residential purposes, whether continuously or
intermittently. No action for removal may be brought pursuant to this
subsection more than two years after the adjudication or conviction or more
than two years after the person's release from incarceration whichever is the
later.

���� p.��� The person has been
found, by a preponderance of the evidence, liable in a civil action for removal
commenced under this act for an offense under N.J.S.2C:20-1 et al. involving
theft of property located on the leased premises from the landlord, the leased
premises or other tenants residing in the leased premises, or N.J.S.2C:12-1 or
N.J.S.2C:12-3 involving assault or terroristic threats against the landlord, a
member of the landlord's family or an employee of the landlord, or under the
"Comprehensive Drug Reform Act of 1987," N.J.S.2C:35-1 et al.,
involving the use, possession, manufacture, dispensing or distribution of a
controlled dangerous substance, controlled dangerous substance analog or drug
paraphernalia within the meaning of that act within or upon the leased premises
or the building or complex of buildings and land appurtenant thereto, or the
mobile home park, in which those premises are located, and has not in
connection with his sentence for that offense either (1) successfully completed
or (2) been admitted to and continued upon probation while completing a drug
rehabilitation program pursuant to N.J.S.2C:35-14; or, being the tenant or
lessee of such leased premises, knowingly harbors or harbored therein a person
who committed such an offense, or otherwise permits or permitted such a person
to occupy those premises for residential purposes, whether continuously or
intermittently, except that this subsection shall not apply to a person who
harbors or permits a juvenile to occupy the premises if the juvenile has been
adjudicated delinquent upon the basis of an act which if committed by an adult
would constitute the offense of use or possession under the said
"Comprehensive Drug Reform Act of 1987."

���� q.��� The person has been
convicted of or pleaded guilty to, or if a juvenile, has been adjudicated
delinquent on the basis of an act which if committed by an adult would
constitute an offense under N.J.S.2C:20-1 et al. involving theft of property
from the landlord, the leased premises or other tenants residing in the same
building or complex; or, being the tenant or lessee of such leased premises,
knowingly harbors therein a person who has been so convicted or has so pleaded,
or otherwise permits such a person to occupy those premises for residential
purposes, whether continuously or intermittently.

���� r.���� The person is found in
a civil action, by a preponderance of the evidence, to have committed a
violation of the human trafficking provisions set forth in section 1 of
P.L.2005, c.77 (C.2C:13-8) within or upon the leased premises or the building
or complex of buildings and land appurtenant thereto, or the mobile home park,
in which those premises are located; or, being the tenant or lessee of such
leased premises, knowingly harbors or harbored therein a person who has been
engaged in human trafficking, or otherwise permits or permitted such a person
to occupy those premises for residential purposes, whether continuously or
intermittently. No action for removal may be brought pursuant to this
subsection more than two years after the alleged violation has terminated.� A
criminal conviction or a guilty plea to a crime of human trafficking under
section 1 of P.L.2005, c.77 (C.2C:13-8) shall be considered prima facie
evidence of civil liability under this subsection.

����
s.���� The person's conduct
was the primary cause for overcrowding or unauthorized occupancy and the person
has continued, after a written notice to cease, to permit overcrowding or
unauthorized occupancy of a residential unit.� For the purposes of this subsection,
overcrowding or unauthorized occupancy of a residential unit shall be deemed to
be the responsibility of the tenant if it is established (1) that the tenant
signed a lease or was provided a written copy of the rental policy in which the
number of allowed occupants was specified, (2) that the number of allowed
occupants was within the standards established by the applicable code
requirements, or rental policy if a number was specified in the lease, and (3) that
any additional occupants in excess of the number of occupants specified became
residents of the rental unit without the expressed consent of the
owner-landlord.

����
For the purposes of this
subsection:

����
"applicable code
requirements" means standards governing the occupancy of housing space
adopted by the Department of Community Affairs pursuant to the State Housing
Code, promulgated pursuant to P.L.1966, c.168 (C.2A:42-74 et seq.) or the "Hotel
and Multiple Dwelling Law," P.L.1967, c.76 (C.55:13A-1 et seq.), and

����
"rental policy"
means any documents including, but not limited

to, a lease agreement,
rental application, rules and regulations, or rules of conduct established by
the owner-landlord that creates maximum occupancy limits for the rental unit.

���� For purposes of this section,
(1) "developmental disability" means any disability which is defined
as such pursuant to section 3 of P.L.1977, c.82 (C.30:6D-3); (2) "member
of the immediate family" means a person's spouse, parent, child or
sibling, or a spouse, parent, child or sibling of any of them; and (3)
"permanently" occupies or occupied means that the occupant maintains
no other domicile at which the occupant votes, pays rent or property taxes or
at which rent or property taxes are paid on the occupant's behalf.

(cf: P.L.2013, c.51, s.7)

���� 3.��� Section 3 of P.L.1993,
c.342 (C.2A:18-61.1g) is amended to read as follows:

���� 3.��� a.�� A municipality may
enact an ordinance providing that any tenant who receives a notice of eviction
pursuant to section 3 of P.L.1974, c.49 (C.2A:18-61.2) that results from zoning
or code enforcement activity for an illegal occupancy, as set forth in paragraph
(3) of subsection g. of section 2 of P.L.1974, c.49 (C.2A:18-61.1),
except
for overcrowding where the tenant's own conduct was the primary cause of the
overcrowding,
shall be considered a displaced person and shall be entitled
to relocation assistance in an amount equal to six times the monthly rental
paid by the displaced person.� The owner-landlord of the structure shall

be liable for the payment of
relocation assistance pursuant to this section.

���� b.��� A municipality that has
enacted an ordinance pursuant to subsection a. of this section may pay
relocation assistance to any displaced person who has not received the required
payment from the owner-landlord of the structure at the time of eviction pursuant
to subsection a. of this section from a revolving relocation assistance fund
established pursuant to section 2 of P.L.1987, c.98 (C.20:4-4.1a).� All
relocation assistance costs incurred by a municipality pursuant to this
subsection shall be repaid by the owner-landlord of the structure to the
municipality in the same manner as relocation costs are billed and collected
under section 1 of P.L.1983, c.536 (C.20:4-4.1) and section 1 of P.L.1984, c.30
(C.20:4-4.2).� These repayments shall be deposited into the municipality's
revolving relocation assistance fund.

���� c.���� A municipality that has
enacted an ordinance pursuant to subsection a. of this section, in addition to
requiring reimbursement from the owner-landlord of the structure for relocation
assistance paid to a displaced tenant, may require that an additional fine for
zoning or housing code violation for an illegal occupancy, up to an amount
equal to six times the monthly rental paid by the displaced person, be paid to
the municipality by the owner-landlord of the structure.

���� In addition to this penalty, a
municipality, after affording the owner-landlord an opportunity for a hearing
on the matter, may impose upon the owner-landlord, for a second or subsequent
violation for an illegal occupancy, a fine equal to the annual tuition cost of
any resident of the illegally occupied unit attending a public school, which
fine shall be recovered in a civil action by a summary proceeding in the name
of the municipality pursuant to "The Penalty Enforcement Law of
1999," P.L.1999, c.274 (C.2A:58-10 et seq.).� The municipal court and the
Superior Court shall have jurisdiction of proceedings for the enforcement of
the penalty provided by this section.� The tuition cost shall be determined in
the manner prescribed for nonresident pupils pursuant to N.J.S.18A:38-19 and
the payment of the fine shall be remitted to the appropriate school district.

���� d.��� For the purposes of this
section, the owner-landlord of a structure shall exclude mortgagees in
possession of a structure through foreclosure.

���� For the purposes of this
section, a "second or subsequent violation for an illegal occupancy"
shall be limited to those violations that are new and are a result of distinct
and separate zoning or code enforcement activities, and shall not include any
continuing violations for which citations are issued by a zoning or code
enforcement agent during the time period required for summary dispossession
proceedings to conclude if the owner has

initiated eviction proceedings in a
court of proper jurisdiction.

(cf: P.L.1999, c.425, s.1)

���� 4.��� Section 4 of P.L.1993,
c.342 (C.2A:18-61.1h) is amended to read as follows:

���� 4.��� a.�� If a residential
tenant is displaced because of an illegal occupancy in a residential rental
premises pursuant to paragraph (3) of subsection g. of section 2 of P.L.1974,
c.49 (C.2A:18-61.1)
, except for overcrowding where the tenant's
own conduct was the primary cause of the overcrowding,
� and the
municipality in which the rental premises is located has not enacted an
ordinance pursuant to section 3 of P.L.1993, c.342 (C.2A:18-61.1g), the
displaced residential tenant shall be entitled to reimbursement for relocation
expenses from the owner in an amount equal to six times the monthly rental paid
by the displaced person.

���� b.��� Payment by the owner
shall be due five days prior to the removal of the displaced tenant.� If
payment is not made within this time, interest shall accrue and be due to the
displaced residential tenant on the unpaid balance at the rate of 18% per annum
until the amount due and all interest accumulated thereon shall be paid in
full.

���� c.���� If reimbursement for
which an owner is liable is not paid in full within 30 days of removal of the
tenant, the unpaid balance thereof and all interest accruing thereon and, in
addition thereto, an amount equal to six times the monthly rental paid by the displaced
tenant shall be a lien upon the parcel of property on which the dwelling of the
displaced residential tenant was located, for the benefit of that tenant.� To
perfect the lien, a statement showing the amount and due date of the unpaid
balance and identifying the parcel shall be recorded with the county clerk or
registrar of deeds and mortgages of the county in which the affected property
is located, and upon recording, the lien shall have the priority of a mortgage
lien. Identification of the parcel by reference to its designation on the tax
map of the municipality shall be sufficient for purposes of recording.�
Whenever the unpaid balance and all interest accrued thereon has been fully
paid, the displaced residential tenant shall promptly withdraw or cancel the
statement, in writing, at the place of recording.

���� d.��� This section shall not
authorize the enforcement of a lien for actual reasonable moving expenses with
respect to any real property the title to which has been acquired by a
municipality and which has been transferred pursuant to a rehabilitation
agreement.

���� e.���� For the purposes of
this section, the owner of a structure shall exclude mortgagees in possession
of a structure through foreclosure.

(cf: P.L.1993, c.342, s.4)

���� 5.��� Section 3 of P.L.1974,
c.49 (C.2A:18-61.2) is amended to read as follows:

���� 3.��� No judgment of possession
shall be entered for any premises covered by section 2 of
[
this act
]

P.L.1974,
c.49 (C.2A:18-61.1)
, except in the nonpayment of rent under subsection a.
or f. of section 2, unless the landlord has made written demand and given
written notice for delivery of possession of the premises.� The following
notice shall be required:

���� a.���� For an action alleging
disorderly conduct under subsection b. of section 2, or injury to the premises
under subsection c. of section 2, or any grounds under subsection m., n., o.,
p., q., or r. of section 2, three days' notice prior to the institution of the
action for possession;

���� b.��� For an action alleging
continued violation of rules and regulations under subsection d. of section 2,
or substantial breach of covenant under subsection e. of section 2, or habitual
failure to pay rent, one month's notice prior to the institution of the action
for possession;

���� c.���� For an action alleging
any grounds under subsection g. of section 2, three months' notice prior to the
institution of the action;

���� d.��� For an action alleging
permanent retirement under subsection h. of section 2, 18 months' notice prior
to the institution of the action and, provided that, where there is a lease in
effect, no action may be instituted until the lease expires;

���� e.���� For an action alleging
refusal of acceptance of reasonable lease changes under subsection i. of
section 2, one month's notice prior to institution of action;

���� f.���� For an action alleging
any grounds under subsection l. of section 2, two months' notice prior to the
institution of the action and, provided that where there is a written lease in
effect no action shall be instituted until the lease expires;

���� g.��� For an action alleging
any grounds under subsection k. of section 2, three years' notice prior to the
institution of action, and provided that where there is a written lease in
effect, no action shall be instituted until the lease expires;

���� h.��� In public housing under
the control of a public housing authority or redevelopment agency, for an
action alleging substantial breach of contract under paragraph (2) of
subsection e. of section 2, the period of notice required prior to the
institution of an action for possession shall be in accordance with federal
regulations pertaining to public housing leases
;

����
i.���� For an action
alleging overcrowding or unauthorized occupancy under subsection s. of section
2 of P.L.1974, c.49 (C.2A:18-61.1), one month's notice prior to the institution
of the action for possession
.

���� The notice in each of the
foregoing instances shall specify in detail the cause of the termination of the
tenancy and shall be served either personally upon the tenant or lessee or such
person in possession by giving him a copy thereof, or by leaving a copy thereof
at his usual place of abode with some member of his family above the age of 14
years, or by certified mail; if the certified letter

is not claimed, notice shall be
sent by regular mail.

(cf: P.L.2013, c.51, s.8)

���� 6.��� R.S.40:49-5 is amended
to read as follows:

���� 40:49-5.�� The governing body
may prescribe penalties for the violation of ordinances it may have authority
to pass, by one or more of the following: imprisonment in the county jail or in
any place provided by the municipality for the detention of prisoners, for any
term not exceeding 90 days; or by a fine not exceeding $2,000
unless a fine
in excess of $2,000 is specifically authorized by statute
; or by a period
of community service not exceeding 90 days.

���� The governing body may
prescribe that for the violation of any particular ordinance at least a minimum
penalty shall be imposed which shall consist of a fine which may be fixed at an
amount not exceeding $100.

���� The governing body may
prescribe that for the violation of an ordinance pertaining to unlawful solid
waste disposal at least a minimum penalty shall be imposed which shall consist
of a fine which may be fixed at an amount not exceeding $2,500 or a maximum
penalty by a fine not exceeding $10,000.

���� The court before which any
person is convicted of violating any ordinance of a municipality shall have
power to impose any fine, term of imprisonment, or period of community service
not less than the minimum and not exceeding the maximum fixed in such ordinance.

���� Any person who is convicted of
violating an ordinance within one year of the date of a previous violation of
the same ordinance and who was fined for the previous violation, shall be
sentenced by a court to an additional fine as a repeat offender.� The additional
fine imposed by the court upon a person for a repeated offense shall not be
less than the minimum or exceed the maximum fine fixed for a violation of the
ordinance, but shall be calculated separately from the fine imposed for the
violation of the ordinance.

���� Any municipality which chooses
not to impose an additional fine upon a person for a repeated violation of any
municipal ordinance may waive the additional fine by ordinance or resolution.

���� Any person convicted of the
violation of any ordinance may, in the discretion of the court by which he was
convicted, and in default of the payment of any fine imposed therefor, be
imprisoned in the county jail or place of detention provided by the municipality,
for any term not exceeding 90 days, or be required to perform community service
for a period not exceeding 90 days.

���� Any municipality that chooses
to impose a fine in an amount greater than $1,250 upon an owner for violations
of housing or zoning codes shall provide a 30-day period in which the owner
shall be afforded the opportunity to cure or abate the condition and shall also
be afforded an opportunity for a hearing before a court of competent
jurisdiction for an independent determination concerning the violation.�
Subsequent to the expiration of the 30-day period, a fine greater than $1,250
may be imposed if a court has not determined otherwise or, upon reinspection of
the property, it is determined that the abatement has not been substantially
completed.

(cf: P.L.2005, c.269, s.1)

���� 7.��� This act shall take
effect on the first day of the seventh month next following the date of
enactment.

STATEMENT

���� This bill would allow
municipalities to adopt ordinances authorizing the issuance of summonses upon
certain landlords and tenants alleged to have violated occupancy requirements
resulting in overcrowding.� The bill would allow for the imposition of fines
upon a culpable landlord or tenant of up to $2,500 for a first violation,
$5,000 for a second violation, and $10,000 for each subsequent violation.�
These fines would be in addition to any other fines or penalties authorized by
law.� The bill would require that a hearing be held before any fines could be
imposed.� The bill would not be applicable to seasonal rentals or to buildings
with more than four residential rental units.

���� The bill would also clarify
existing law by distinguishing between illegal occupancies resulting in
overcrowding that are caused by landlords and those that are caused by tenants,
specifying that landlords are not obligated to pay tenant relocation costs when
the tenant's own conduct is the primary cause for the overcrowding.� This is
consonant with the holdings in