The "Safeguarding Livable Units through Municipal Landlord Oversight and Regulation by DCA" or "SLUMLORD Act"; strengthens habitability protections for residential tenants; appropriates $5 million.

A5036

ASSEMBLY, No. 5036

STATE OF NEW JERSEY

222nd LEGISLATURE

�

INTRODUCED MAY 11, 2026

Sponsored by:

Assemblyman� GABRIEL RODRIGUEZ

District 33 (Hudson)

Assemblyman� MICHAEL VENEZIA

District 34 (Essex)

Assemblyman� AL ABDELAZIZ

District 35 (Bergen and Passaic)

Assemblywoman� KATIE BRENNAN

District 32 (Hudson)

SYNOPSIS

���� The "Safeguarding Livable Units through
Municipal Landlord Oversight and Regulation by DCA" or "SLUMLORD
Act"; strengthens habitability protections for residential tenants;
appropriates $5 million.

CURRENT VERSION OF TEXT

���� As introduced.

��

An Act

concerning habitability violations for
residential units, supplementing and amending various parts of the statutory
law, and making an appropriation.

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

���� 1.� (New section)� This act
shall be known and may be cited as the
"Safeguarding
Livable Units through Municipal Landlord Oversight and Regulation by DCA"
or "SLUMLORD Act."

���� 2.��� (New
section)� As used in sections 1 through 6 of P.L.��� , c.��� (C.������� through
C.������� ) (pending before the Legislature as this bill):

���� "Beneficial owner"
means, with respect to an entity:

���� (1)� an individual who,
directly or indirectly, through any contract, arrangement, understanding,
relationship, or otherwise, exercises substantial control over the entity, and
who owns or controls not less than 25 percent of the ownership interests of the
entity;

���� (2)� for an entity in which no
individual both owns greater than 25 percent of the ownership interests in the
entity and exercises substantial control over the entity, an individual who,
directly or indirectly, through any contract, arrangement, understanding,
relationship, or otherwise, exercises substantial control over the entity, and
who holds either greater than 10 percent of the ownership interests of the
entity, or the greatest ownership interest in the entity, whichever ownership
interest is greater but less than 25 percent; or

���� (3)� for an entity in which no
individual owns greater than 10 percent of the ownership interests of the
entity or owns the greatest ownership interest in the entity, and also
exercises substantial control over the entity, an individual who holds the
greatest ownership interest in the entity.

���� "Bureau" means the
Bureau of Housing Inspection in the Department of Community Affairs.

���� "Commissioner" means
the Commissioner of Community Affairs.

���� "Department" means
the Department of Community Affairs.

���� "Enforcing agency"
means the same as the term is defined pursuant to section 3 of P.L.1975, c.217
(C.52:27D-121).

���� "Habitability"
means:

���� (1)� implied in every written
lease, oral lease, or rental agreement for a rental unit, that the landlord
warrants that the premises so leased or rented, including the areas used in
common with other tenants or residents, are fit for human habitation and for the
uses reasonably expected and intended by tenants, and that the tenants or
occupants of the residential premises will not be subjected to any conditions
that affect a vital facility, which would be dangerous, hazardous, or
detrimental to a tenant�s or occupant�s life, health, or safety, or to the
livability of the residential premises;

���� (2)� the implied warranty of
habitability, which shall include and encompass the ongoing judicial
construction and development of the implied warranty of habitability in this
State; or

���� (3)� that the rental unit and
common areas are free from violations, which affect a vital facility, of the
State Uniform Construction Code, promulgated pursuant to the "State
Uniform Construction Code Act," P.L.1975, c.217 (C.52:27D-119 et seq.), the
"Hotel and Multiple Dwelling Law," P.L.1967, c.76 (C.55:13A-1 et
seq.), and other similar provisions of law, including case law, that affects
the health, safety, livability, and habitability of residential premises.

���� "Habitability
violation" means any violation against a general or specific standard of
habitability.

���� "Landlord" means a
person or persons, who, as an individual, or through a partnership,
corporation, limited liability company, or trust, or through an affiliate,
subsidiary, or holding company of a partnership, corporation, limited liability
company, or trust, owns or purports to own, a building in which there is
rented, or offered for rent, a residential rental unit under either a written
or oral lease, except dwelling units in rental premises containing not more
than one dwelling unit or in owner-occupied premises of not more than three
dwelling units.� In the case of a mobile or manufactured home park,
"landlord" shall include the owner of an individual dwelling unit
within the mobile or manufactured home park, if the dwelling unit is leased by
the owner of the individual dwelling unit, and shall include the owner of the
dwelling site that is leased to the owner of an individual dwelling unit.

���� "Municipality" means
any city, borough, town, township, or village in this State.

���� "Principal agent"
means a natural person, designated by a landlord pursuant to paragraph (2) of
subsection a. of section 4 of P.L.��� , c.��� (C.������� ) (pending before the
Legislature as this bill), who is a beneficial owner of the landlord�s rental
business or entity, who shall also be, as applicable to the landlord�s business
entity, a sole proprietor of the rental business, a senior or managing partner
of a partnership, a member of a member-managed limited liability company, a
manager of a manager-managed limited liability company, or the director or
officer of a corporation, or other similar manager or officer, who shall:

���� (1)� receive complaints from
the landlord�s tenants for habitability violations;

���� (2)� be authorized to direct
the property management company or other agent of the landlord in charge of
making repairs, to abate a habitability violation;

���� (3)� be authorized to accept
service of process, and communicate and receive court filings and other legal
documents from the landlord�s registered agent or process server directly; and

���� (4)� be authorized to receive,
respond to, and discuss confidential communications of the landlord with the
landlord�s attorney or other persons.

���� "Program" means the
Habitability Enforcement and Affirmative Litigation Program, established
pursuant to section 3 of P.L.��� , c.��� (C.������� ) (pending before the
Legislature as this bill).

���� "Rental unit" means
any residential building or structure, or any part thereof or land appurtenant
thereto that is rented or offered for rent for living or dwelling purposes,
which shall not include a seasonal rental unit or dwelling space in any place
of transient accommodation.� Whether a dwelling space is a "transient
accommodation" shall be determined based on the following and other
factors: the duration of an individual's stay in the accommodation; whether the
accommodation is an individual's sole residence; whether the individual intends
to stay in the accommodation for a substantial period of time or indefinitely;
whether the operator or owner of the accommodation knows or should know that
the individual is not a short-term guest; and whether the relationship between
the individual and the owner or operator of the accommodation mirrors a
landlord-tenant relationship.� "Rental unit" shall also mean, in the
case of a mobile or manufactured home park, an individual dwelling unit or a
dwelling site within the mobile or manufactured home park, if the individual
dwelling unit or dwelling site is offered for rent.

���� "Seasonal rental
unit" means a dwelling unit located in the State rented for a term of not
more than 125 consecutive days for residential purposes by a person having a
permanent, habitable residence elsewhere, but shall not include use or rental
of living quarters by migrant, temporary, or seasonal workers in connection
with any work or place where work is being performed.

���� "Severe habitability
violation" means:

���� (1)� more than 10 habitability
violations in the aggregate for any of a landlord�s rental units, or more than
three habitability violations for any one unit, which remained unabated
following written notice to the landlord and a reasonable opportunity to cure;
or

���� (2)� a habitability violation
for which the landlord has either:

���� (a)�� not abated the violation
after being provided multiple written notices by the tenant after being
afforded reasonable opportunities to cure following each of the respective
notices;

���� (b)� failed on repeated
instances to respond to a complaint or court notice, or has failed to appear in
court on repeated instances for proceedings relating to a habitability
violation; or

���� (3)� a habitability violation
that constitutes a life-hazard violation that is not resolved following a third
reinspection by the enforcing agency.

���� "Tenant" means a
residential lessee, sublessee, licensee, or other person entitled to the
possession or to the use or occupancy of the whole or a part of a rental unit.

���� 3.��� (New section)� a.� The
Commissioner of Community Affairs shall establish a Habitability Enforcement
and Affirmative Litigation Program in the Department of Community Affairs,
which shall, in conjunction with an enforcing agency and the Bureau of Housing Inspection
in the department, provide information to tenants concerning the enforcement of
habitable living conditions and habitability violations.� The program shall
also, through public-private partnerships, utilize affirmative litigation,
authorized pursuant to subsection b. of section 4 of P.L.��� , c.��� (C.�������
) (pending before the Legislature as this bill), to deter and prosecute
habitability violations on behalf of residential tenants.� The program shall
not, except as provided in subsection e. of this section, expend resources
representing residential tenants in defense of an eviction action.� The program
shall prioritize apartments and multiple dwellings, and landlords who lease a
significant number of residential rental units, where:

���� (1)� the program has
identified a significant number of alleged, existing, or prior habitability
violations; or

���� (2)� a landlord has repeatedly
been found liable for, or has received numerous complaints related to,
habitability violations.�

���� b.���
The program shall consist, at a minimum, of:

���� (1)� a
Tenant Advocate Director, who shall be employed with the program and shall
report to the commissioner;

���� (2)� a
Director of Affirmative Litigation, who shall be employed with the program and
shall report to the commissioner; and

���� (3)� any
other staff that the commissioner, Tenant Advocate Director, or Director of
Affirmative Litigation determine necessary to effectuate the provisions of
P.L.��� , c.��� (C.������� ) (pending before the Legislature as this bill).

���� c.��� The
Tenant Advocate Director shall:

���� (1)� establish
and oversee the operations of a Tenant Advocate Service, which shall employ or
contract with, recruit, and train State, county, and municipal tenant
advocates, via a process and methods determined by the commissioner and Tenant
Advocate Director, to conduct outreach, host informational seminars, and
provide information enabling residential tenants to enforce habitable living
conditions for residential rental units in this State and identify habitability
violations;

����� (2) work
in conjunction with an enforcing agency, the bureau, local resource agencies,
and the Director of Affirmative Litigation to effectuate the purposes of the
Tenant Advocate Service pursuant to P.L. , c. (C. )
(pending before the Legislature as this bill) and rules established by the
commissioner pursuant to section 12 of P.L. , c. (C. )
(pending before the Legislature as this bill);�

����� (3) be
qualified in accordance with criteria established by the commissioner; and

����� (4) work
with the Director of Affirmative Litigation to facilitate the identification of

apartments, multiple dwellings, and landlords that are subject to
prioritized enforcement pursuant to subsection a. of this section
, and connect the tenants of such residential
properties with the State, county, and municipal tenant advocates, and the
Affirmative Litigation Initiative.

����� d.�� The
Director of Affirmative Litigation shall:

���� (1)� establish
and oversee the operations of an Affirmative Litigation Initiative under the
program, which shall contract with or employ attorneys, nonprofit legal
organizations, and law firms, to litigate cases on behalf of tenants pursuant
to subsection b. of section 4 of P.L. , c. (C. )
(pending before the Legislature as this bill), alleging habitability
violations, to affirmatively enforce habitable living conditions at rental
units;

����� (2) have
substantial litigation experience and be qualified in accordance with criteria
established by the commissioner; and

����� (3) focus
the operations of the Affirmative Litigation Initiative and litigation efforts
on landlords of
multiple dwellings, and landlords that are subject to
prioritized enforcement pursuant to subsection a. of this section.

���� e.��� The
Affirmative Litigation Initiative
shall not
represent residential tenants in defense of an eviction action, unless the
eviction action was filed, or there is sufficient evidence to allege that the
eviction action was filed, as reprisal pursuant to P.L.1970, c.210
(C.2A:42-10.10 et seq.), including reprisal for a tenant�s connection to the
program, efforts to enforce habitable living conditions, or reporting of any
habitability violations.

���� 4.��� (New
section)� a.� (1)� A warranty of habitability shall be implied in every written
lease, oral lease, or rental agreement for a rental unit, warranting that the
rental unit so leased or rented, including the areas used in common with other
tenants, are fit for human habitation and for the uses reasonably expected and
intended by tenants, and that the tenants shall not be subjected to any
conditions that affect a vital facility, which would be dangerous, hazardous,
or in any respect detrimental to life, health, or safety, or to the livability
of the rental unit or premises.� The procedures and remedies set forth in
P.L.��� , c.��� (C.������� ) (pending before the Legislature as this bill) are
intended to codify and facilitate the enforcement of the implied warranty of
habitability by the courts, and shall not be construed to hinder or limit the
ongoing judicial construction and development of the implied warranty of
habitability set forth in case law.� Tenants shall be entitled to assert and
receive the maximum protections and remedies cumulatively available under State
and federal statutory, administrative, and common law, and nothing in P.L.��� ,
c.��� (C.������� ) (pending before the Legislature as this bill) shall be
construed as limiting a tenant�s right to seek the maximum protections possible
from all sources of law.

���� (2)� Every landlord shall
designate at least one principal agent who shall be the primary agent of the
landlord for the purposes of complying with the provisions of P.L.��� , c.���
(C.������� ) (pending before the Legislature as this bill).� A written lease shall
clearly specify, in no smaller than 14-point font, the name, address, primary
and emergency contact information, and email address, of the principal agent,
who a tenant may contact for habitability violations, and serve with process
for the purposes of an action brought pursuant to subsection b. of section 4 of
P.L.��� , c.��� (C. ) (pending
before the Legislature as this bill), which alleges a severe habitability
violation.� A principal agent shall have an obligation to update the
information required pursuant to this paragraph on a continuing basis.� The
failure to receive service of process for a principal agent�s failure to update
the information required pursuant to this paragraph shall not constitute a
defense, affirmative or otherwise, in an action brought by the tenant pursuant
to subsection b. of section 4 of P.L.��� , c.��� (C.������� ) (pending before
the Legislature as this bill).

���� b.��� (1)� The Affirmative
Litigation Initiative on behalf of a tenant, or a tenant, may bring an action
in a court of competent jurisdiction against a landlord for a habitability
violation, which remains unabated following written notice to the landlord and
a reasonable opportunity to cure, and shall be awarded all damages appropriate
within the context of the violation, taking into account the duration and
severity of the violation and other factors the court deems relevant.� A
tenant:

���� (a)�� bringing an action
pursuant to this paragraph shall not be required to place any rent monies in
escrow at the commencement of the action, but a court of competent jurisdiction
may order a tenant to place rent monies in escrow as the court deems proper with
consideration of any habitability violations alleged or proven in the
litigation; and

���� (b)� shall not bring an action
pursuant to this paragraph or exercise any of the remedies set forth pursuant
to P.L.��� , c.��� (C. )
(pending before the Legislature as this bill), if a landlord, following� notice
to the landlord and a reasonable opportunity to cure: authorizes a tenant to
make repairs as are feasible for the tenant and

necessary to cure the
habitability violation and to deduct from the rent due and owing to the
landlord the amount that is necessary to make the repairs; or if a landlord and
tenant, following the tenant�s written notice to the landlord, agree in writing
that a certain portion of the rent due and owing, deducted and withheld by a
tenant after a tenant made the repairs necessary to cure a habitability
violation, is in satisfaction of the rent following the tenant�s abatement of
the habitability violation.

���� (2)� It shall be an
affirmative defense against an action alleging a habitability violation that
the tenant is currently in arrears on any rent lawfully due and owing to the
landlord, unless the rent in arrears, due and owing to the landlord, is:

���� (a)�� withheld directly as a
result of a habitability violation, after the tenant provided notice to the
landlord and provided a reasonable opportunity to cure the violation prior to
withholding rent;

���� (b)� withheld directly as a
result of the tenant�s exercise of lawful statutory claims or defenses; or

���� (c)�� in arrears because of
expenses incurred by the tenant to address the alleged habitability violations.

���� (3)� Notwithstanding any
damages awarded pursuant to paragraph (1) of this subsection or pursuant to any
other remedy available to a tenant for a habitability violation, including all
remedies cumulatively available under State and federal statutory, administrative,
and common law, if the court finds, by preponderance of the evidence, that a
habitability violation exists, the tenant shall recover $1,000 from the
landlord, in addition to reasonable attorney�s fees; court costs; expenses for
expert witnesses; and other related fees and expenses incurred in proving and
abating a habitability violation.� Notwithstanding any damages awarded pursuant
to paragraph (1) of this subsection or pursuant to any other remedy available
to a tenant for a habitability violation, including all remedies cumulatively
available under State and federal statutory, administrative, and common law, if
the court finds, by preponderance of the evidence, that a severe habitability
violation exists, the tenant shall recover $2,000 from the landlord, and $2,000
from the principal agent, in addition to reasonable attorney�s fees; court
costs; expenses for expert witnesses; and other related fees and expenses
incurred in proving and abating a habitability violation.� If the tenant
proves, by preponderance of the evidence, a severe habitability violation
exists, and the tenant has withheld a certain amount of rent to make the
repairs, the tenant shall be awarded treble damages of the amount necessary to
make the repairs.

���� (4)� A court shall terminate,
upon the request of a tenant, a lease or agreement containing a provision that
waives the implied warranty of habitability, or any other habitability
violation.

���� (5)� A landlord shall be
subject to the damages and remedies set forth in this subsection for each
violation against each tenant.

���� c.��� (1)� If a court of
competent jurisdiction determines that there exists a severe habitability
violation, pursuant to an action brought by the Affirmative Litigation
Initiative on behalf of a tenant, or the tenant, pursuant to subsection b. of
this section, the court shall order the landlord to abate the violation and
shall specify a time period for the correction of the violation.� The order
shall provide that, if the landlord does not comply with the order during the
time period specified in the order, the program may abate the condition giving
rise to the violation so as to comply with the order, at the cost of the
landlord, and the program may expend funds provided to the program for such
purpose and charge the same against the landlord.� The amount thereof shall be
a lien against the premises.

���� (2)� If a court of competent
jurisdiction determines that there exists a severe habitability violation,
pursuant to an action brought by the tenant pursuant to subsection b. of this
section, the court shall order the landlord to abate the violation and shall specify
a time period for the correction of the violation.� The order shall provide
that, if the landlord does not comply with the order during the time period
specified in the order, the municipality in which the landlord�s unit is
located, including a municipal enforcing agency or other similar agency of the
municipality, may abate the condition giving rise to the violation so as to
comply with the order, at the cost of the landlord and may expend funds for
such purpose and charge the same against the landlord.� The amount thereof
shall be a lien against the premises in the same manner that taxes are made a
lien against land pursuant to Title 54 of the Revised Statutes, and the payment
thereof shall be enforced within the same time, in the same manner, and by the
same proceedings as the payment of taxes is otherwise enforced under Title 54
of the Revised Statutes.

���� (3)� A principal agent of a
landlord who is found liable for a severe habitability violation:

���� (a)�� may be charged with a
disorderly persons offense pursuant to section 7 of P.L.��� , c.��� (C.�������
) (pending before the Legislature as this bill); and

���� (b) shall be personally liable
in an action pursuant to paragraph (1) of subsection b. of this section, and in
accordance with section 5 of P.L.��� , c.��� (C.������� ) (pending before the
Legislature as this bill).

���� d.��� If a property is being
managed by a property manager or property management company that is a real
estate broker, broker-salesperson, or salesperson, licensed pursuant to
R.S.45:15-1 et seq., other than a beneficial owner of the landlord's rental
business or entity, and that property manager or property management company
requests that the principal agent or landlord make repairs to the property but
the repairs are not made, through no fault of the property manager or property
management company, the property manager or property management company shall
not have any direct or indirect liability under P.L.��� , c.��� (C.������� )
(pending before the Legislature as this bill) or otherwise, including but not
limited to the principal agent or landlord, for the failure to make those
repairs.

���� 5.��� (New section)� A court
may hold a landlord liable for a habitability violation pursuant to P.L.��� ,
c.��� (C.������� ) (pending before the Legislature as this bill), in an action
brought by the tenant, or the
Affirmative
Litigation Initiative
on behalf of a tenant, pursuant to subsection b.
of section 4 of P.L.��� , c.��� (C.������� ) (pending before the Legislature as
this bill).� Notwithstanding any provision of section 30 of P.L.2012, c.50
(C.42:2C-30), N.J.S.14A:6-1 et seq., or any other provision of law to the
contrary, a court may hold a principal agent personally liable for a severe
habitability violation, in an action brought by the tenant or the
Affirmative Litigation Initiative
pursuant to
subsection b. of section 4 of P.L.��� , c.��� (C.������� ) (pending before the
Legislature as this bill).� If the landlord has designated more than one
principal agent, the principal agents shall be jointly and severally liable.� A
principal agent shall be held personally liable pursuant to P.L.��� , c.���
(C.�� �����) (pending before the Legislature as this bill), provided:

���� a.��� by preponderance of the
evidence, a court of competent jurisdiction determines that there exists one or
more severe habitability violations; and

���� b.��� notice of the action
alleging a severe habitability violation has been issued to the principal
agent, the registered agent of the landlord, each holder of a recorded
mortgage, and other existing lienholders, if provided within the landlord�s
registration information pursuant to section 2 of P.L.1974, c.50 (C.46:8-28)
and, if applicable,
section 12 of P.L.1967, c.76
(C.55:13A-12)
.� If the landlord is not registered, in violation of
section 2 of P.L.1974, c.50 (C.46:8-28),
section 12
of P.L.1967, c.76 (C.55:13A-12, or both,
then the notice required
pursuant to this subsection shall only be required with respect to the
principal agent.

���� 6.��� (New
section)� a.� The Commissioner of Community Affairs, in coordination with the
Administrative Director of the Courts, shall establish and maintain a
habitability database, which shall be used for the exclusive purpose of
assisting the department and municipality in the implementation of the
provisions of P.L.��� , c.��� (C.������� ) (pending before the Legislature as
this bill) and shall include an index showing, and a file containing, with
respect to each rental unit that is leased to a tenant:

���� (1)� information pertaining to
landlord identification that is required to be submitted to the Department of
Community Affairs by a landlord pursuant to section 12 of P.L.1967, c.76
(C.55:13A-12) or section 2 of P.L.1974, c.50 (C.46:8-28), or any other information
that the commissioner determines necessary to effectuate the purposes of
P.L.��� , c.��� (C.������� ) (pending before the Legislature as this bill);

���� (2)� any case filed by a
tenant alleging a habitability violation pursuant to subsection b. of section 4
of P.L.��� , c.��� (C.������� ) (pending before the Legislature as this bill),
which has resulted in favorable disposition to the plaintiff-tenant by a Judge of
the Superior Court of New Jersey; and

���� (3)� each notice and order,
violation, or citation issued for the landlord�s rental units, including units
and multiple dwellings that are not subject to a pending landlord-tenant
action, by the Department of Community Affairs or by the municipal department or
enforcing agency having jurisdiction over buildings located in the respective
municipality, that are related to: habitability; fire safety; health;
utilities, including gas, water, or electricity; noise violations; and any
other notice or order, violation, or citation determined necessary by the
commissioner to include in the habitability database to effectuate the purposes
of P.L.��� , c.��� (C. )
(pending before the Legislature as this bill).

���� b.��� It shall be the duty of
the municipal department or enforcing agency having jurisdiction over buildings
located in the respective municipality, to file with the commissioner a true
copy of each notice and order, violation, or citation of such municipal department
or enforcing agency alleging the occupation of a building containing a
violation or citation described pursuant to paragraph (3) of subsection a. of
this section, or the existence of a nuisance in the building and of each
notice, order, rule, or certificate showing the clearance, correction, or
abatement of the violation or nuisance within 72 hours from the date of
issuance of the notice, order, rule, or certificate, or within any other time
period specified in the notice, order, rule or certificate.� The municipal
department or enforcing agency filing the true copy with the commissioner may
charge reasonable fees for the inspection of multiple dwellings, to offset the
actual costs of compliance with the provisions of P.L.��� , c.��� (C.������� )
(pending before the Legislature as this bill).

���� c.��� A defect contained in an
index and file, established and maintained pursuant to subsection a. of this
section, shall be categorized:

���� (1)� as a first, second, or
third and subsequent defect;

���� (2)� by the length of time
that the defect has persisted; and

���� (3)� by whether or not the
subject of the defect is non-hazardous, hazardous, or immediately hazardous.

���� d.��� In any action or
proceeding between a landlord and tenant before the Superior Court of New
Jersey, Law Division, Special Civil Part, or before the Superior Court of New
Jersey, Law Division, if the action was removed to the Law Division pursuant to
N.J.S.2A:18-60, or pursuant to P.L.1971, c.244 (C.2A:42-85 et seq.) or
subsection b. of section 4 of P.L.��� , c.��� (C.������� ) (pending before the
Legislature as this bill):

���� (1)� the index and files
established and maintained pursuant to subsection a. of this section shall be
electronically displayed or printed, and copies made available for the court
and all litigants, subject to the redaction of identifying information for those
individuals and properties not subject to the pending litigation; and

���� (2)� the contents of the index
and files shall constitute prima facie evidence of any matter stated therein.

���� e.��� A landlord may petition
the department for removal from the habitability database, in a form and manner
determined by the department, and the request shall be granted if the
petitioner can substantiate, to the satisfaction of the department, that the
landlord does not meet the requirements of this section for inclusion in the
habitability database.

���� 7.��� (New
section)� A principal agent, as that term is defined in section 2 of P.L.��� ,
c.��� (C.������� ) (pending before the Legislature as this bill), commits a
disorderly persons offense if the principal agent intentionally, recklessly, or
negligently commits or engages in conduct resulting in a severe habitability
violation pursuant to P.L. , c.��� (C.������� ) (pending
before the Legislature as this bill).

���� 8.��� (New section)� A
habitability violation, as the term is defined pursuant to section 2 of P.L.���
, c.��� (C.������� ) (pending before the Legislature as this bill), which
remains unabated following written notice to a landlord and a reasonably
opportunity to cure, shall constitute an unlawful practice pursuant to the New
Jersey consumer fraud act,
P.L.1960, c.39 (C.56:8-1 et seq.)
.

���� 9.��� Section 2 of P.L.1974,
c.50 (C.46:8-28) is amended to read as follows:

���� 2.��� Every landlord shall,
within 30 days following the effective date of this act, or at the time of the
creation of the first tenancy in any newly constructed or reconstructed
building, file with the clerk of the municipality, or with such other municipal
official as is designated by the clerk, in which the residential property is
situated, in the case of a one-dwelling unit rental or a two-dwelling unit
non-owner occupied premises, or with the Bureau of Housing Inspection in the
Department of Community Affairs in the case of a multiple dwelling as defined
in section 3 of the "Hotel and Multiple Dwelling Law" (C.55:13A-3), a
certificate of registration on forms prescribed by the Commissioner of
Community Affairs, which shall contain the following information:

���� a.��� The name and address of
the record owner or owners of the premises and the record owner or owners of
the rental business if not the same persons.� In the case of a partnership the
names of all general partners shall be provided;

���� b.��� If the record owner is a
corporation,
a limited liability company, or any other legal or commercial
entity,
the name and address of the registered agent
, in addition to, as
applicable to the entity, the members with at least a 10 percent interest in a
member-managed limited liability company, the managers of a manager-managed
limited liability company, specifying which managers hold at least a 10 percent
interest in the manager-managed limited liability company, the principal agent
or agents, as the term is defined pursuant to section 2 of P.L.��� , c.���
(C.������� ) (pending before the Legislature as this bill),
and corporate
officers
and directors
of said corporation;

���� c.��� If the address of any
record owner is not located in the county in which the premises are located,
the name and address of a person who resides in the county in which the
premises are located and is authorized to accept notices from a tenant and to
issue receipts therefor and to accept service of process on behalf of the
record owner;

���� d.��� The name and address of
the managing agent of the premises, if any;

���� e.��� The name and address,
including the dwelling unit, apartment or room number of the superintendent,
janitor, custodian or other individual employed by the record owner or managing
agent to provide regular maintenance service, if any;

���� f.���� The name, address and
telephone number of an individual representative of the record owner or
managing agent who may be reached or contacted at any time in the event of an
emergency affecting the premises or any unit of dwelling space therein,
including such emergencies as the failure of any essential service or system,
and who has the authority to make emergency decisions concerning the building
and any repair thereto or expenditure in connection therewith and shall, at all
times, have access to a current list of building tenants that shall be made
available to emergency personnel as required in the event of an emergency;

���� g.��� The name and address of
every holder of a recorded mortgage on the premises;

���� h.��� If fuel oil is used to
heat the building and the landlord furnishes the heat in the building, the name
and address of the fuel oil dealer servicing the building and the grade of fuel
oil used.

(cf: P.L.2003, c.56, s.2)

���� 10.� Section 30 of P.L.2012,
c.50 (C.42:2C-30) is amended to read as follows:

���� 30.� a.� The debts,
obligations, or other liabilities of a limited liability company, whether
arising in contract, tort, or otherwise:

���� (1)� are solely the debts,
obligations, or other liabilities of the company; and

���� (2)� do not become the debts,
obligations, or other liabilities of a member or manager solely by reason of
the member acting as a member or manager acting as a manager.�

���� b.��� The failure of a limited
liability company to observe any particular formalities relating to the
exercise of its powers or management of its activities is not a ground for
imposing liability on the members or managers for the debts, obligations, or
other liabilities of the company.

����
c.��� Notwithstanding any
provision of P.L.2012, c.50 (C.42:2C-1 et seq.) to the contrary, a principal
agent of a limited liability company that is a landlord shall be personally
liable for a severe habitability violation following the effective date of P.L. , c. (C. ) (pending
before the Legislature as this bill), in an action brought by a tenant or the
Affirmative Litigation Initiative pursuant to subsection b. of section 4, and
section 5, of P.L. , c. (C. )
(pending before the Legislature as this bill).

(cf: P.L.2012, c.50, s.30)

���� 11.� N.J.S.14A:6-12 is amended
to read as follows:

���� (1)� In addition to any other
liabilities imposed by law upon directors of a corporation, directors who vote
for, or concur in, any of the following corporate actions

���� (a)�� the declaration of any
dividend or other distribution of assets to the shareholders contrary to the
provisions of this act or contrary to any restrictions contained in the
certificate of incorporation;

���� (b)� the purchase of the
shares of the corporation contrary to the provisions of this act or contrary to
any restrictions contained in the certificate of incorporation;

���� (c)�� the distribution of
assets to shareholders during or after dissolution of the corporation without
paying, or adequately providing for, all known debts, obligations and
liabilities of the corporation, except that the directors shall be liable only
to the extent of the value of assets so distributed and to the extent that such
debts, obligations and liabilities of the corporation are not thereafter paid,
discharged, or barred by statute or otherwise;

���� (d)� the complete liquidation
of the corporation and distribution of all of its assets to its shareholders
without dissolving or providing for the dissolution of the corporation and the
payment of all fees, taxes, and other expenses incidental thereto, except that
the directors shall be liable only to the extent of the value of assets so
distributed and to the extent that such fees, taxes, and other expenses
incidental to dissolution are not thereafter paid;

���� (e)�� the making of any loan
to an officer, director or employee of the corporation or of any subsidiary
thereof contrary to the provisions of this act;

����
(f)�� if authorized by the
directors of a corporation that is a landlord, the action of a principal agent
that results in a severe habitability violation pursuant to P.L.��� , c.���
(C.������� ) (pending before the Legislature as this bill);

���� shall be jointly and severally
liable to the corporation for the benefit of its creditors or shareholders, to
the extent of any injury suffered by such persons, respectively, as a result of
any such action.

���� (2)� Any director against whom
a claim is successfully asserted under this section shall be entitled to
contribution from the other directors who voted for, or concurred in, the
action upon which the claim is asserted.

���� (3)� Directors against whom a
claim is successfully asserted under this section shall be entitled, to the
extent of the amounts paid by them to the corporation as a result of such
claims,

���� (a)�� upon payment to the
corporation of any amount of an improper dividend or distribution, to be
subrogated to the rights of the corporation against shareholders who received
such dividend or distribution with knowledge of facts indicating that it was
not authorized by this act, in proportion to the amounts received by them
respectively;

���� (b)� upon payment to the
corporation of any amount of the purchase price of an improper purchase of
shares, to have the corporation rescind such purchase of shares and recover for
their benefit, but at their expense, the amount of such purchase price from any
seller who sold such shares with knowledge of facts indicating that such
purchase of shares by the corporation was not authorized by this act;

���� (c)�� upon payment to the
corporation of the claim of any creditor by reason of a violation of paragraph
14A:6-12(1)(c), to be subrogated to the rights of the corporation against
shareholders who received an improper distribution of assets;

���� (d)� upon payment to the
corporation of the amount of any loan made improperly, to be subrogated to the
rights of the corporation against the person who received the improper loan.

���� (4)� A director shall not be
liable under this section if, in the circumstances, he discharged his duty to
the corporation under section 14A:6-14.

���� (5)� Every action against a
director for recovery upon a liability imposed by subsection 14A:6-12(1) shall
be commenced within six years next after the cause of any such action shall
have accrued.

(cf: P.L.1973, c.366, s.27)

���� 12.� Section 1 of P.L.2013,
c.206 (C.2A:18-61.66) is amended to read as follows:

���� 1.���
a.
� If a
residential lease agreement provides that the landlord is or may be entitled to
recover either attorney's fees or expenses, or both, as a result of the failure
of the tenant to perform any covenant or agreement in the lease, or if the
lease provides that such costs may be recovered as additional rent, the court
shall read an additional parallel implied covenant into the lease.� This
implied covenant shall require the landlord to pay the tenant either the
reasonable attorney's fees or the reasonable expenses, or both, incurred by
that tenant
, or sought by nonprofit legal services or pro bono counsel for a
tenant,
as the result of the tenant's successful defense of any action or
summary proceeding commenced by the landlord against the tenant, arising out of
an alleged failure of the tenant to perform any covenant or agreement in the
lease, or as the result of any successful action or summary proceeding
commenced by the tenant against the landlord, arising out of the failure of the
landlord to perform any covenant or agreement in the lease.

���� The court shall order the
landlord to pay such attorney's fees or expenses, or both, that are actually
and reasonably incurred by a tenant,
or sought by nonprofit legal services
or pro bono counsel for a tenant,
who is the successful party in such
actions or proceedings to the same extent the landlord is entitled to recover
attorney's fees and expenses, or both, as provided in the lease.� The court
shall have discretion with respect to awards of attorney's fees or expenses, or
both, for tenants to the same degree as it has with respect to awards of
attorney's fees or expenses, or both, for landlords as provided under the lease
either explicitly or implicitly.� An order based on this implied covenant shall
require the landlord to pay the tenant such costs either as money damages or a
credit against future rent, as determined by the tenant.� Any waiver of this
section shall be void as against public policy.

���� Notwithstanding the foregoing,
in an action or summary proceeding for non-payment of rent a tenant who pays
all rent currently due and owing on or after the filing of the complaint but
prior to entry of a final judgment, and whom the court finds presented no
meritorious defense to the complaint other than said payment, shall not be
deemed to have successfully defended against the action or summary proceeding
for the purposes of the award of attorney's fees or expenses, or both.

����
b.��� Notwithstanding any
provision of subsection a. of this section to the contrary:

����
(1)� P.L.2013, c.206
(C.2A:18-61.66 et seq.) shall apply to an action brought pursuant to subsection
b. of section 4 of P.L.��� , c.��� (C.������� ) (pending before the Legislature
as this bill); and

����
(2)� reasonable attorney�s
fees, court costs, expenses for expert witnesses, and other related fees and
expenses incurred

by a tenant or sought by nonprofit legal services or
pro bono counsel for a tenant

in proving a habitability violation, as
the term is defined pursuant to section 2 of P.L.��� , c.��� (C.������� )
(pending before the Legislature as this bill), shall be awarded to a tenant of
a landlord who, by preponderance of the evidence, is found liable for a
habitability violation.

����
c.
��� As used in
[
this act
]

P.L.2013,
c.206 (C.2A:18-61.66 et seq.),
"expenses" shall include expenses
directly related to the litigation including, but not limited to, court costs
and expenses for witnesses.� "Expenses" shall not include personal
expenses for travel, reimbursement for missed work time, or child care.

(cf: P.L.2013, c.206, s.1)

���� 13.� The Commissioner of
Community Affairs shall promulgate rules and regulations, in accordance with
the "Administrative Procedure Act," P.L.1968, c.410 (C.52:14B-1, et
seq.), that are necessary to effectuate and administer the provisions of P.L. , c. (C. )
(pending before the Legislature as this bill).

���� 14.� There is appropriated
$5,000,000 from the General Fund to the Department of Community Affairs for the
administration of the Habitability Enforcement and Affirmative Litigation
Program to effectuate the provisions of P.L.��� , c.��� (C. ) (pending
before the Legislature as this bill).

���� 15.� This act shall take
effect on the first day of the fourth month next following enactment, except
that the Commissioner of Community Affairs and Administrative Director of the
Courts may take anticipatory action necessary to implement the provisions of P.L.���
, c.��� (C.������� ) (pending before the Legislature as this bill).

STATEMENT

���� This bill, known as the
"Safeguarding Livable Units through Municipal Landlord Oversight and
Regulation by DCA" or "SLUMLORD Act," strengthens protections
for residential tenants for violations of the implied warranty of habitability and
other code violations that severely affect the habitability of the tenant�s
rental unit.� The bill requires the Commissioner of Community Affairs
(commissioner) to establish a Habitability Enforcement and Affirmative
Litigation Program (program) in the Department of Community Affairs (DCA).� The
bill also: codifies the implied warranty of habitability; authorizes a private
cause of action for residential tenants (tenants) for habitability violations
and provides certain remedies; imposes personal liability and criminal penalties
on certain landlords and their agents for severe habitability violations;
extends a tenant�s ability to recover attorney�s fees and certain costs to
actions arising from habitability violations; and establishes a habitability
database to enhance the efficacy of the program.

���� Specifically, the bill
requires the establishment of the program to: provide information to tenants
regarding habitability violations, as defined in the bill; and engage in
litigation, through public-private partnerships, on behalf of tenants to
enforce habitability violations.� The program is to consist of a Tenant
Advocate Service and Affirmative Litigation Initiative, which are not to expend
resources representing residential tenants in defense of an eviction action,
unless for certain cases involving reprisal.

���� The bill requires a landlord,
as defined in the bill, to designate at least one principal agent, as defined
in the bill, who is to be the primary agent of the landlord for the purposes of
complying with the bill, receiving habitability violation complaints from
tenants, directing the property management company to abate violations, and,
who is to be authorized to accept service of process from the registered agent
or process server, receive confidential communications, and be personally and
criminally liable for severe habitability violations, as defined in the bill.�
The bill provides the principal agent is to meet certain requirements described
in the bill.� The bill requires a written lease to clearly provide certain
contact information of the principal agent, and the principal agent to
continuously update this information as necessary.

���� The bill provides a private
cause of action and permits a tenant to bring an action alleging a habitability
violation, which remains unabated following written notice to the landlord and
a reasonable opportunity to cure.� A tenant is not to bring an action pursuant
to the bill under certain circumstances enumerated in the bill.� The bill
provides that it is an affirmative defense against an action alleging a
habitability violation if the tenant is currently in arrears on any rent
lawfully due and owing to the landlord, unless the rent is in arrears under
certain circumstances.� The bill authorizes the court to award all appropriate
damages.� The bill specifies that for habitability violations, the landlord
would be subject to the penalties set forth in the bill for each violation
against each tenant.

���� The bill further provides that
a habitability violation is to constitute an unlawful practice pursuant to the
New Jersey consumer fraud act, P.L.1960, c.39 (C.56:8-1 et seq.), and
prescribes certain penalties depending on whether there exists a habitability
violation or a severe habitability violation.� If a court determines that a
severe habitability violation exists, the bill requires a court to order the
landlord to abate the violation in a specified time period, which, if not
timely abated, would enable the program, or the municipality in which the
landlord�s unit is located, including a municipal enforcing agency or other
similar agency of the municipality (municipality), to abate the condition
giving rise to the violation, at the landlord�s expense, which expense would
constitute a lien against the premises.� If the lien is held by the
municipality, the lien is to be held and enforced in the same manner, time, and
proceedings as taxes owed to the municipality pursuant to Title 54 of the
Revised Statutes.

���� The bill provides that a court
may hold a principal agent personally liable for a severe habitability
violation, as specified in the bill.� The bill also establishes that a
principal agent is guilty of a disorderly persons offense if the principal
agent intentionally, recklessly, or negligently commits or engages in conduct resulting
in a severe habitability violation. �A disorderly persons offense is punishable
by a term of imprisonment of up to six months, a fine of up to $1,000, or both.

���� The bill provides that if a
property is being managed by a property manager or property management company
that is a licensed real estate broker, broker-salesperson, or salesperson,
other than a beneficial owner of the landlord's rental business or entity, and
that property manager or property management company requests that the
principal agent or landlord make repairs to the property but the repairs are
not made, through no fault of the property manager or property management
company, the property manager or property management company are not to have
any direct or indirect liability under the bill or otherwise, including but not
limited to the principal agent or landlord, for the failure to make those
repairs.

���� To facilitate the efficacy of
the program, the bill requires the commissioner, in coordination with the
Administrative Director of the Courts, to establish and maintain a habitability
database, which is required to contain certain information pertaining to
habitability violations, as described in the bill.� The bill permits a landlord
to petition the DCA for removal from the habitability database if the landlord
can demonstrate that they do not meet the requirements under the bill for
inclusion in the database.

���� The bill amends section 2 of
P.L.1974, c.50 (C.46:8-28) of the "Landlord Identity Law," to expand
the information and individuals required to provide information for purposes of
the certificate of registration, to include the principal agent, certain
corporate officers and directors, and to facilitate the identification of a
beneficial owner, as defined in the bill.� Further, the bill amends P.L.2013,
c.206 (C.2A:18-61.66), which permits a tenant to recover attorney�s fees to the
same extent as the landlord, if the residential lease permits the landlord to
recover attorney�s fees for actions arising out of the lease.� The bill extends
and modifies the tenant�s ability to recover attorney�s fees and certain costs
to actions arising from habitability violations.

���� The bill appropriates $5
million from the General Fund to the Habitability Enforcement and Affirmative
Litigation Program to effectuate the provisions of the bill.�