Establishes standards for determining an unconscionable rent increase; excludes from public access landlord tenant records in certain circumstances.

A3507 TR

ASSEMBLY, No. 3507

STATE OF NEW JERSEY

222nd LEGISLATURE

�

PRE-FILED FOR INTRODUCTION IN THE 2026 SESSION

Sponsored by:

Assemblywoman YVONNE LOPEZ

District 19 (Middlesex)

Assemblyman CODY D. MILLER

District 4 (Atlantic, Camden and Gloucester)

Assemblywoman� SHANIQUE SPEIGHT

District 29 (Essex and Hudson)

Co-Sponsored by:

Assemblywomen Quijano, Brennan and Morales

SYNOPSIS

���� Establishes standards for determining an
unconscionable rent increase; excludes from public access landlord tenant
records in certain circumstances.

CURRENT VERSION OF TEXT

���� As reported by the Assembly Housing Committee with
technical review.

��

An Act
concerning alleged unconscionable rent increases and
supplementing chapter 18 of Title 2A of the New Jersey Statutes.�

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

����� 1.�
a. In determining whether a rent increase is unconscionable, the court shall
consider:

����� (1)�
the amount of the proposed rent increase;

����� (2)�
the landlord�s expenses and profitability, including, but not limited to, the
consideration of: new ownership or refinancing of the rental unit; new or
preexisting financing on the property; improvements and maintenance to the
rental unit or rental building or buildings; and changes in expenses related to
the property, such as utilities, provided the utilities are paid for by the
landlord, and insurance rate increases, which are approved by the relevant rate
setter over the previous 12 months;

����� (3)�
how the existing and proposed rents compare to rents charged at comparable
rental properties in the geographic area, including the federal Department of
Housing and Urban Development Fair Market Rents and Small Area Market Rents;

����� (4)�
the relative bargaining position of the parties, including but not limited to,
consideration of the availability of rental housing in the geographic area;

����� (5)�
based on the judge�s general knowledge, whether the rent increase would shock
the conscience of a reasonable person;

����� (6)�
the length of time since the last rent increase by the current owner against
the residential tenant, the length of tenancy, and the length of property
ownership; and

����� (7)�
the condition of the property, including but not limited to, claims related to
the habitability of the premises and outstanding code violations affecting
health and safety, which remain unaddressed following written notice to the
landlord and an opportunity to cure.�

����� b.�
No one factor considered by a court of competent jurisdiction, pursuant to
subsection a. of this section, shall be the sole factor in the court�s decision
concerning whether a rent increase is unconscionable.� The factors enumerated
in paragraphs (1) through (7) of subsection a. of this section shall not be
deemed exhaustive.� A court may consider other factors which, on a case-by-case
basis, the court determines to be relevant in determining whether an increase
in rent is unconscionable.

����� c.�� The
landlord shall bear the burden of proof to demonstrate that a rent increase is
not unconscionable.�

����� d.�� Court
records concerning an eviction action brought by a residential landlord against
a residential tenant pursuant to section 2 of P.L.1974, c.49 (C.2A:18-61.1), which
were adjudicated or otherwise disposed of and for which no judgment for
possession has ever been entered, or an eviction action brought by a
residential landlord against a residential tenant, pursuant to N.J.S.2A:18-53
et seq. or section 2 of P.L.1974, c.49 (C.2A:18-61.1), in which a judgment for
possession was entered seven years ago or longer, shall be excluded from public
access.

����� e.�
The provisions of this section shall not apply to a rent increase that is
subject to and compliant with a local rent control ordinance or approved
variance, or subject to regulation by a local, State, or federal affordable
housing program.

���� 2.� This act shall take effect
immediately, except that subsection e. of section 1 of P.L.��� , c.���
(C.������� ) (pending before the Legislature as this bill) shall take effect on
the first day of the sixth month next following the date of enactment.�