Concerns exemptions to municipal rent control and rent leveling ordinances.

A4444

ASSEMBLY, No. 4444

STATE OF NEW JERSEY

222nd LEGISLATURE

�

INTRODUCED FEBRUARY 24, 2026

Sponsored by:

Assemblywoman� KATIE BRENNAN

District 32 (Hudson)

Assemblyman� STERLEY S. STANLEY

District 18 (Middlesex)

Co-Sponsored by:

Assemblywoman Reynolds-Jackson

SYNOPSIS

���� Concerns exemptions to municipal rent control and
rent leveling ordinances.

CURRENT VERSION OF TEXT

���� As introduced.

��

An Act

concerning exemptions to rent control and rent
leveling ordinances, and supplementing and amending P.L.1987, c.153.

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

���� 1.� (New section)� The
Legislature finds and declares that:

���� a.� P.L.1987, c.153
(C.2A:42-84.1 et seq.) established a temporary exemption from rent increase
limitations as an incentive to construct new rental housing;�

���� b.� The exemption rewards
developers who build multiple dwellings for rental occupancy by permitting
market-rate rents during an initial period;

���� c.� Units constructed for sale
have been built in response to a different market incentive and were not
intended to benefit from the exemption established by P.L.1987, c.153
(C.2A:42-84.1 et seq.), regardless of whether any sale occurs or the units are
later offered for rent;

���� d.� The terms of the
exemption, including the duration of the exemption period as determined by the
initial mortgage loan, are fixed at the time of the original construction event
and are not subject to reset, revival, or re-establishment through changes in
ownership, financing, legal structure, or marketing of the multiple dwelling
during or after the course of construction;

���� e.� The Legislature did not
intend, and P.L.1987, c.153 (C.2A:42-84.1 et seq.) has not at any time
provided, that a transfer of ownership, substitution of financing, or
conversion of individually owned dwelling units to rental use would create a
new opportunity to claim an exemption or establish a new exemption period;
provided, however, that the availability of an exemption for a building
converted from non-residential use to use as a multiple dwelling is not to be
precluded, provided all requirements of P.L.1987, c.153 (C.2A:42-84.1 et seq.)
are satisfied;

���� f.� P.L.1999, c.291 was
intended to clarify P.L.1987, c.153 (C.2A:42-84.1 et seq.), confirming that a
30-year exemption period applies only when there is "no initial mortgage
financing," and provided that the owner has "fully complied"
with the filing requirements of
section 4 of P.L.1987,
c.153 (C.2A:42-84.4);

���� g.� The requirement of full
compliance with section 4 of P.L.1987, c.153 (C.2A:42-84.4) as a prerequisite
to claiming an exemption was confirmed by section 3 of P.L.1999, c.291.� The
enactment of P.L.��� , c.��� (C.������� ) (pending before the Legislature as
this bill) codifies that confirmed requirement as part of the permanent
statutory text. The requirement of full compliance with section 3 of P.L.1987,
c.153 (C.2A:42-84.3), including truthful disclosure, has applied on the same
basis since the original enactment of P.L.1987, c.153, and is hereby confirmed.

���� h.� Through the enactment of
P.L.��� , c.��� (C.������� ) (pending before the Legislature as this bill), the
Legislature intends to memorialize that, pursuant to section 4 of P.L.1987,
c.153 (C.2A:42-84.4): in a municipality that has enacted a rent control or rent
leveling ordinance, the ordinance shall apply to all qualifying multiple
dwellings unless interrupted by a valid exemption filing; that only the
original owner shall be permitted to file for the exemption, and only prior to
the completion of construction; and that, if a valid filing has not occurred,
the municipal ordinance shall continue to apply by operation of law, and
subsequent owners are to obtain ownership of the property in its existing
regulatory status;

���� i.� In the enactment of
P.L.1987, c.153 (C.2A:42-84.1 et seq.),
the
Legislature intended for the term "mortgage loan," or "initial
mortgage loan" to have the same breadth as a "mortgage loan," as
defined in section 1 of P.L.1985, c.353 (C.46:9-8.1);

���� j.� It is in the public
interest, and a valid public purpose for the Legislature to clarify the initial
intent of P.L.1987, c.153 (C.2A:42-84.1 et seq.), and thereby ensure that
municipalities shall be provided with appropriate authority to regulate rents
within their boundaries;

���� k.� The Legislature intends to
memorialize that, where a mortgage has been obtained, the exemption period is
to be limited to the term of the mortgage, and in order to claim an exemption,
the owner shall be required to establish the initial mortgage term in the
notice required pursuant to section 3 of P.L.1987, c.153 (C.2A:42-84.3); and

���� l.� The enactment of P.L.��� ,
c.��� (C.������� ) (pending before the Legislature as this bill) shall
memorialize requirements that have applied since the original enactment of
P.L.1987, c.153 (C.2A:42-84.1 et seq.), and shall not impose new obligations on
owners who have complied with P.L.1987, c.153 (C.2A:42-84.1 et seq.).

���� 2.� Section 1 of P.L.1987,
c.153 (C.2A:42-84.1) is amended to read as follows:

���� 1.� As used in
[
this act
]

P.L.1987,
c.153 (C.2A:42-84.1 et seq.)
:

���� a.� "Completion of
construction" means issuance of
[
a
]

the
initial
certificate of occupancy pursuant to section 15 of the "State
Uniform Construction Code Act," P.L. 1975, c. 217 (C. 52:27D-133)
,
meaning the first certificate of occupancy for the newly constructed building.�
"Completion of construction" shall not mean the issuance of a
certificate of continued occupancy, certificate of compliance, certificate of
re-occupancy, or any other subsequent administrative filing;

���� b.� "Constructed"
means constructed, erected
,
or converted
[
but excludes rehabilitation of
premises rented previously for residential purposes without an intervening use
for other purposes for a period of at least two years prior to conversion.�
Mere vacancy shall not be considered an intervening use for the purposes of
this subsection
]

;

���� c.� "Constructed after
the effective date of this act" means
initially
constructed
pursuant to a construction permit
for a multiple dwelling
issued on or
after the effective date of
[
this
act
]

P.L.1987,
c.153 (C.2A:42-84.1 et seq.).� A building constructed pursuant to a
construction permit for individually owned dwelling units, including
condominiums and cooperatives, shall not be considered a building constructed
pursuant to a construction permit for a multiple dwelling for purposes of this
subsection, regardless of whether units therein are subsequently rented. �For a
building converted from non-residential use to use as a multiple dwelling, the
construction permit for the conversion shall be the operative construction
permit for purposes of this subsection
;

���� d.� "Constructed for
senior citizens" means constructed under a governmental program
restricting occupancy of at least
[
90%
]

90 percent

of the dwelling units to senior citizens and any members of their immediate
households or their occupant surviving spouses, or constructed as a retirement
subdivision or retirement community as defined in the "Retirement
Community Full Disclosure Act," P.L. 1969, c. 215 (C. 45:22A-1 et seq.);

���� e.� "Multiple
dwelling" means any building or structure and land appurtenant thereto
containing four or more dwelling units, other than dwelling units constructed
for occupation by senior citizens, rented or offered for rent to four or more
tenants or family units;

���� f.� "Period of
amortization" means the time during which the principal amount of the
initial

mortgage loan and interest thereon would be paid entirely through periodic
payments, whether or not the term of the
initial
mortgage loan is for a
shorter period concluding with a balloon payment;
[
and
]

���� g.�
"Senior
citizens"
means persons 62 years of age or older
;

����
h.� "Construction loan
"
means a loan for a fixed term of no more than
three years which is secured by a lien on real property and which is made by
the lender for the sole purpose of financing the erection, construction,
completion, addition to, alteration or repair of improvements to real property;

����
i.� "Exemption"
means an exemption, established pursuant to P.L.1987, c.153 (C.2A:42-84.1 et
seq.), from a rent control or rent leveling ordinance;

����
j.� "Initial mortgage
loan" means the mortgage financing obtained by the original owner of a
multiple dwelling to finance construction of the multiple dwelling prior to the
completion of construction.� Subsequent refinancing or financing obtained after
the completion of construction, or by any successor owner, including but not
limited to refinancing loans, acquisition loans, or permanent financing loans,
shall not constitute the initial mortgage loan.� Where the initial mortgage
loan has been refinanced, extended, modified, or replaced, the term of the
initial mortgage loan as originally executed shall control.� A "mortgage
loan," as defined in section 1 of P.L.1985, c.353 (C.46:9-8.1), meaning
any loan or line of credit, except a construction loan, which states a maximum
specified principal amount and which is secured by an interest in real
property, shall constitute an initial mortgage loan.� A loan or line of credit
obtained for the construction, development, or financing of a multiple dwelling
that is not a construction loan shall constitute an initial mortgage loan for
purposes of determining the duration of an exemption under section 2 of
P.L.1987, c.153 (C.2A:42-84.2);

����
k.�
"Newly
constructed multiple dwelling" means
a multiple dwelling that, at the
time of initial construction, was intended and designed for dwelling units to
be rented or offered for rent.� A multiple dwelling or dwelling unit
constructed for sale shall not constitute a newly constructed multiple dwelling,
regardless of whether a sale occurred or the unit is later offered for rent.�
The determination of whether or not a multiple dwelling shall constitute a
multiple dwelling shall be determined at the time of the completion of
construction and shall not change based on subsequent events following the
initial determination; and

����
l.� "Original
owner" means the owner who obtained the construction permit and commenced
construction of the multiple dwelling.� An owner who acquires a partially or
fully constructed building through purchase, foreclosure, or any other method of
transfer shall not be considered the "original owner" for purposes of
P.L.1987, c.153 (C.2A:42-84.1 et seq.)
.

(cf: P.L.1987, c.153, s.1)

���� 3.� Section 2 of P.L.1987,
c.153 (C.2A:42-84.2) is amended to read as follows:

���� 2.� a.� In any municipality
which has enacted or which hereafter enacts a rent control or rent leveling
ordinance, other than under the authority of P.L.1966, c.168 (C.2A:42-74 et
seq.), those provisions of the ordinance which limit the periodic or regular
increases in base rentals of dwelling units shall not apply to multiple
dwellings constructed after the effective date of
[
this act
]

P.L.1987,
c.153 (C.2A:42-84.1 et seq.)
, for a period of time not to exceed the period
of amortization of any initial mortgage loan obtained for the multiple
dwelling, or for 30 years following completion of construction, whichever is
less.�
An owner who satisfies the prerequisites established pursuant to
P.L.1987, c.153 (C.2A:42-84.1 et seq.) for claiming an exemption from a local
rent control or rent leveling ordinance may claim the exemption for the full
duration of the initial financing or 30 years, whichever is less.

���� b.�
(1)
� In the event
that there is no initial mortgage
[
financing
]

loan
,
the period of exemption
[
from
a rent control or rent leveling ordinance
]

shall be 30 years from the completion of construction.

����
(2)� Where an initial
mortgage loan has been obtained, the exemption period shall be limited to the
term of the loan as stated in the loan documentation.� If the loan
documentation permits multiple amortization periods, the longest permitted
period shall apply.

����
c.� The 30-year default
period shall be available to an owner who has financed construction without a
project-based mortgage.� To claim an exemption in which the initial mortgage
loan has been obtained, the owner shall establish the term of such financing.�

����
d.� An exemption shall not
be available unless dwelling units in a multiple dwelling are constructed for
rental occupancy.� A building constructed for sale as individual dwelling units
shall not qualify for an exemption regardless of whether any units are
subsequently rented rather than sold.�

����
e.� As used in this
section, the "term" of an initial mortgage loan means the period from
the date of origination to the date of maturity as stated in the loan
documentation, and shall not be measured by any amortization schedule.

(cf: P.L.1999, c.291, s.1)

���� 4.� Section 3 of P.L.1987,
c.153 (C.2A:42-84.3) is amended to read as follows:

���� 3.�
a.
� The owner of
any multiple dwelling exempted from a rent control or rent leveling ordinance
pursuant to
[
this
act
]

P.L.1987,
c.153 (C.2A:42-84.1 et seq.)
, shall, prior to entering into any lease with
a person for tenancy of any premises located in the multiple dwelling, furnish
the prospective tenant with a written statement that
[
the multiple dwelling in which
the premises is located is exempt from rent control or rent leveling for such
time as may remain in the exemption period.
]

shall include the following provisions:

����
(1)� a representation that
the building has qualified as a newly constructed multiple dwelling pursuant to
P.L.1987, c.153 (C.2A:42-84.1 et seq.) at the time of initial construction;

����
(2)� the date of the
completion of construction;

����
(3)� whether an initial
mortgage loan was obtained, and if so, the term of the loan;

����
(4)� the date on which the
exemption period shall terminate; and

����
(5)� the basis for
calculating the termination date for the exemption period.�

����
b.
� Each lease offered
to a prospective tenant for any dwelling unit therein during the period the
multiple dwelling is so exempted shall contain a provision notifying the tenant
of the exemption
, and shall include the information required pursuant to
subsection a. of this section
.�

����
c.� The notice requirement
requiring a calculation of the termination date for the exemption period,
established pursuant to paragraph (5) of subsection a. of this section, shall
not be satisfied unless the owner provides an explanation that:

����
(1)� the exemption period,
pursuant to subsection b. of section 2 of P.L.1987, c.153 (C.2A:42-84.2), shall
be 30 years, because no initial mortgage loan was obtained; or

����
(2)� disclosure of the term
of the initial mortgage loan for the multiple dwelling.

����
d.� An owner who has
obtained an exemption, and who provides complete and accurate notice, as
required by this section, shall be permitted to collect rent increases
consistent with the claimed exemption.� A unit for which the owner has failed
to comply with the notice requirements of this section shall not be entitled to
the exemption provided under P.L.1987, c.153 (C.2A:42-84.1 et seq.) to collect
rent increases. �The loss of exemption for such unit shall not be terminated by
a change in occupancy, vacancy, change in ownership, or any other event, and
shall remain in effect unless and until the unit is converted to
non-residential use for a period of not less than two years.

����
e.� (1)� In addition to the
loss of exemption penalty established pursuant to subsection d. of this
section, a notice that contains a material misrepresentation concerning the
basis, duration, or validity of an exemption shall not constitute compliance
with the notice requirements of this section.� A material misrepresentation
shall include, but shall not be limited to:

����
(a)� representing that an
exemption period is 30 years when an initial mortgage loan was obtained, unless
the term of the initial mortgage loan is 30 years or more;

����
(b)� representing that a
valid exemption exists when no claim of exemption was filed by the original
owner in compliance with section 4 of P.L.1987, c.153 (C.2A:42-84.4);

����
(c)� representing that a
building qualifies as a newly constructed multiple dwelling when, at the time
of initial construction, the building was constructed for sale as individual
dwelling units; or

����
(d)� representing an
exemption termination date that does not accurately reflect the term of the
initial mortgage loan or the actual date of the completion of construction.

����
(2)� The provision of
materially false notice concerning the basis, duration, or validity of an
exemption, or the collection of rent in excess of that permitted by the
applicable municipal rent control provisions based upon a claim of exemption
that is not valid, shall constitute an unlawful practice within the meaning of
section 2 of P.L.1960, c.39 (C.56:8-2).� Proof of intent shall not be required
to establish a violation of this subsection.

����
f.� (1)� A tenant of a
dwelling unit for which an exemption is claimed may petition the municipal rent
board for a determination of whether the owner has satisfied the requirements
of this section.� The board shall render a determination within 90 days of
receipt of a complete petition.

����
(2)� A municipal rent board
shall determine whether an owner has satisfied the notice requirements
established pursuant to this section. If these notice requirements are not
satisfied, the loss of exemption penalty established pursuant to subsection d.
of this section shall apply by operation of law.

����
g.� (1)� Full compliance
with the requirements of this section, including the requirement of truthful
disclosure, is a prerequisite to claiming or maintaining an exemption from a
rent control or rent leveling ordinance pursuant to P.L.1987, c.153 (C.2A:42-84.1
et seq.).

����
(2)� The notice
requirements established pursuant to this section have required truthful
disclosure since the original enactment of P.L.1987, c.153. �A notice that
misrepresents the duration, basis, or validity of an exemption has not, at any
time, constituted compliance with this section.

(cf: P.L.1987, c.153, s.3)

���� 5.�
Section
4 of P.L.1987, c.153 (C.2A:42-84.4) is amended to read as follows:

���� 4.�
a.� (1)
� The owner
of any multiple dwelling claiming an exemption from a rent control or rent
leveling ordinance pursuant to
[
this
act
]

P.L.1987,
c.153 (C.2A:42-84.1 et seq.)
shall file with the municipal construction
official, at least 30 days prior to the issuance of a certificate of occupancy
for the newly constructed multiple dwelling, a written statement of the owner's
claim of exemption
[
from
an ordinance under this act
]

, including therein a statement of the date upon which the exemption period so
claimed shall commence, such information as may be necessary to effectively
locate and identify the multiple dwelling for which the exemption is claimed,
and a statement of the number of rental dwelling units in the multiple dwelling
for which the exemption is claimed.�

����
(2)� For the purposes of
P.L.1987, c.153 (C.2A:42-84.1 et seq.), the construction of a multiple dwelling
shall be considered a single continuous process from the issuance of the
construction permit to the completion of construction.� A change in ownership,
financing, or legal structure during the course of construction shall not
create a new construction event, reset the date of the construction permit, or
create a new opportunity to file a claim of exemption pursuant to this section.

����
b.
� The owner shall, at
least 30 days prior to the date of the termination of the exemption period
afforded pursuant to
[
this
act
]

P.L.1987,
c.153 (C.2A:42-84.1 et seq.)
, file with the municipal construction official
a notice of the date of termination of the exemption period for the affected
multiple dwelling.

����
c.� If a municipality
enforces a rent control or rent leveling ordinance, the municipality may
require the owner of a building containing four or more dwelling units that is
claiming or has claimed an exemption from the ordinance, or is not subject to
the ordinance for any other reason, to periodically provide updated information
to the construction official for the purpose of verifying whether or not the
exemption shall be continued.�

����
d.� (1) The exemption shall
not be available unless an owner files a claim of exemption in strict
compliance with subsection a. of this section prior to the completion of
construction.

����
(2) The exemption shall
attach by operation of law if the prerequisites established pursuant to
P.L.1987, c.153 (C.2A:42-84.1 et seq.) are satisfied.�

����
(3) An owner who obtains
ownership of a property after the completion of construction, shall not be
provided with an exemption, regardless of whether the property has been
provided with an exemption prior to the change in ownership.� The exemption
shall be available only to the original owner who filed a claim of exemption
prior to the completion of construction.

����
e.� In an initial claim of
an exemption from a rent control or rent leveling ordinance, and in any dispute
regarding the continuation of exemption status, the owner shall be responsible
for providing sufficient documentation to clearly and convincingly demonstrate
compliance with the requirements to obtain the exemption.� A self-generated
copy of a filing, absent a municipal date-stamp or other municipal record of
receipt, shall not alone satisfy this burden.�

����
f.�� The filing window
established pursuant to this section shall be measured from the date of the
completion of construction.� A determination of whether or not a building shall
obtain an exemption shall occur at the time of the completion of construction
based on whether the original owner has satisfied the requirements of P.L.1987,
c.153 (C.2A:42-84.1 et seq.).� Once the completion of construction has
occurred, an owner shall not be allowed to apply for or be able to claim an
exemption.� Rehabilitation, change in marketing, change in ownership, or any
other subsequent event shall not create a new opportunity to claim an
exemption.� Only conversion from non-residential use of at least two years
shall create new eligibility for consideration of awarding an exemption
pursuant to P.L.1987, c.153 (C.2A:42-84.1 et seq.).

����
g.� A municipal rent board
shall determine whether an owner has satisfied the prerequisites of this
section.� If an owner has not satisfied the prerequisites of this section, the
rent board shall not provide an exemption to the owner, and the municipal rent
control or rent leveling ordinance shall apply by operation of law.

����
h.� A tenant of a dwelling
unit for which an exemption is claimed may petition the municipal rent board
for a determination of whether the owner has satisfied the prerequisites of
P.L.1987, c.153 (C.2A:42-84.1 et seq.).� The board shall render a determination
within 90 days of receipt of a complete petition.

����
i.� The provisions of
P.L.1987, c.153 (C.2A:42-84.1 et seq.) shall apply to a claim of an exemption
filed pursuant to a construction permit issued on or after the effective date
of P.L.1987, c.153 (C.2A:42-84.1 et seq.).

����
j.� Full compliance with
the requirements of this section is a prerequisite to claiming or maintaining
an exemption from a rent control or rent leveling ordinance pursuant to
P.L.1987, c.153 (C.2A:42-84.1 et seq.), as confirmed by section 3 of P.L.1999, c.291.

(cf: P.L.1987, c.153, s.4)

���� 6.� (New section)� a.� The
exemption from a municipal rent control or rent leveling ordinance provided
pursuant to P.L.1987, c.153 (C.2A:42-84.1 et seq.) shall apply only to the
provisions of a municipal ordinance that directly limit the periodic or regular
increases in the base rentals of dwelling units.� The exemption shall not
extend to any other administrative, disclosure, registration, or tenant
protection requirement of a municipal rent control or rent leveling ordinance.�

���� b.� A municipality shall be
permitted to condition the right to any rent increase upon compliance with
municipal requirements not preempted by P.L.1987, c.153 (C.2A:42-84.1 et seq.).

���� c.� This section is
declaratory of the law as it has existed since the enactment of P.L.1987, c.153
(C.2A:42-84.1 et seq.), which, pursuant to section 2 of P.L.1987, c.153
(C.2A:42-84.2), has limited the exemption to those provisions of the ordinance
which limit the periodic or regular increases in base rentals of dwelling
units, and has not preempted other municipal requirements.�

���� 7.� This act shall take effect
immediately and shall apply to a property constructed pursuant to a
construction permit issued on or after the effective date of P.L.1987, c.153
(C.2A:42-84.1 et seq.); except that the penalty provision established pursuant
to subsection d. of section 3 of P.L.1987, c.153 (C.2A:42-84.3) shall take
effect on the first day of the second month next following enactment, and shall
only apply to the failure to provide proper notice on and after that date.�

STATEMENT

���� This bill provides additional
specificity related to certain exemptions to municipal rent control and rent
leveling ordinances.�

���� Through P.L.1987, c.153
(C.2A:42-84.1 et seq.), the Legislature has established certain exemptions from
municipal rent control and rent leveling ordinances for newly-constructed
multiple dwellings during the period of amortization of the property�s initial
mortgage, or 30 years whichever is less.� This bill is intended to clarify
these exemptions, and ensure that property owners satisfy certain reasonable
requirements in order to benefit from an exemption.� Moreover, the bill is
intended to clarify and affirm the Legislature's original intent in enacting
P.L.1987, c.153 (C.2A:42-84.1 et seq.), as enhanced by the subsequent enactment
of P.L.1999, c.291.

���� The bill provides that, where
an initial mortgage loan has been obtained, the exemption period is to be
limited to the term of the loan.� If the loan documentation permits multiple
amortization periods, the longest permitted period is to apply.� An alternative
30-year default period is to be available only to an owner who has financed
construction without a project-based mortgage.�

���� The exemptions are not to be
available unless dwelling units are constructed for rental occupancy.� The bill
clarifies that a building constructed for sale as individual dwelling units is
not to qualify, regardless of whether any units are subsequently rented rather
than sold.

���� Prior to entering into a
lease, the bill requires the owner of an exempt multiple dwelling to furnish
the prospective tenant with a written statement providing:

�

a representation that building has qualified as a newly
constructed multiple dwelling at the time of initial construction;

�

the date of the completion of construction;

�

whether an initial mortgage loan was obtained, and if so, the
term of the loan;

�

the date on which the exemption period is to terminate; and

�

the basis for calculating the termination date for the exemption
period.�

���� The bill specifies that an
owner who fails to provide notice to a prospective tenant in compliance with
the bill is not to be permitted to collect exempt rents from the tenant
household occupying the rental unit for which the failure occurred, during the
remainder of the time that at least one member of the same household continues
to occupy the rental unit for which the failure occurred.� The municipal rent
control or rent leveling ordinance is to apply to that rental unit for the
remainder of the occupancy.�

���� The bill further provides
that, if the notice provided by an owner contains a material misrepresentation,
as described in the bill, the owner would be in violation of the New Jersey
consumer fraud act (CFA), P.L.1960, c.39 (C.56:8-1 et seq.), which carries
penalties of not more than $10,000 for a first offense and not more than
$20,000 for any subsequent offense.� Additionally, violations of the CFA can
result in cease and desist orders issued by the Attorney General, the
assessment of punitive damages, and the awarding of treble damages and costs to
the injured party.

���� The bill authorizes a tenant
of a dwelling unit, for which an exemption has been claimed, to petition the
municipal rent board for a determination of whether the owner has satisfied the
bill�s notice requirements.� The board is to render a determination within 90
days of receiving of a complete petition.

���� The bill permits a
municipality to require the owner of a building containing four or more
dwelling units that is claiming or has claimed an exemption, to periodically
provide updated information to the construction official for the purpose of
verifying whether or not the exemption is to be continued.�

���� The bill provides that an
owner who obtains ownership of a property after the completion of construction,
is not to obtain an exemption, regardless of whether the property has obtained
an exemption prior to the change in ownership.� The exemption is to be
available only to the original owner who filed a claim of exemption prior to
the completion of construction.

���� In an initial claim of an
exemption, and in any dispute regarding the continuation of exemption status,
the owner is responsible for providing sufficient documentation to demonstrate
compliance.� The bill specifies that a self-generated copy of a filing, absent
a municipal date-stamp or other municipal record of receipt, is not alone
sufficient to satisfy this burden.�

���� The bill specifies that, once
the completion of construction has occurred, the opportunity to claim the
exemption closes.� Rehabilitation, change in marketing, change in ownership, or
any other subsequent event is not to create a new opportunity to claim an
exemption.� Only conversion from non-residential use of at least two years is
to create new eligibility for consideration for an exemption.

���� If an owner has not satisfied
the prerequisites of claiming an exemption prior to the completion of
construction, the bill provides that the rent board is not to provide an
exemption to the owner.� The bill authorizes a tenant of a dwelling unit for
which an exemption is claimed to petition the municipal rent board for a
determination of whether the owner has satisfied the requirements to claim an
exemption prior to the completion of construction.� The board is to render a
determination within 90 days of receipt of a complete petition.

���� The bill specifies that an
exemption from a municipal rent control or rent leveling ordinance is to apply
only to the provisions of a municipal ordinance that directly limit the
periodic or regular increases in the base rentals of dwelling units.� The exemption
is not to extend to any other administrative, disclosure, registration, or
tenant protection requirement of a municipal rent control or rent leveling
ordinance.�

���� The bill expressly provides
that a municipality may condition the right to any rent increase upon
compliance with municipal requirements not preempted by P.L.1987, c.153
(C.2A:42-84.1 et seq.).

���� The bill is to take effect
immediately and is to be applicable to a property constructed in accordance
with a construction permit issued on or after June 25, 1987, the original
effective date of P.L.1987, c.153 (C.2A:42-84.1 et seq.).� However, the penalty
provision against the collection of exempt rents established for the failure to
properly notice prospective tenants of an exemption is to take effect on the
first day of the second month next following enactment of the bill, and is only
to apply to the failure to provide proper notice on and after that date.�