Requires landlord to provide written explanation for rent increase on tenant of senior citizen housing project.

S3641

SENATE, No. 3641

STATE OF NEW JERSEY

222nd LEGISLATURE

�

INTRODUCED FEBRUARY 24, 2026

Sponsored by:

Senator� LINDA R. GREENSTEIN

District 14 (Mercer and Middlesex)

Co-Sponsored by:

Senator Burgess

SYNOPSIS

���� Requires landlord to provide written explanation for
rent increase on tenant of senior citizen housing project.

CURRENT VERSION OF TEXT

���� As introduced.

��

An Act

requiring written explanation for certain rent
increases and amending P.L.1974, c.49.

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

���� 1.��� 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
written
notice to quit and
written

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.�
If the tenant is a resident of a senior citizen
housing project, as defined in section 2 of P.L.1995, c.144 (C.2A:42-113), then
the notice of increase in rent shall explain the reasons for the rent
increase.� This explanation shall:

����
(1)� describe why the rent
increase is not unconscionable;

����
(2)� confirm that the rent
increase complies with all municipal ordinances, and other applicable laws,
governing rent increases; and

����
(3)� list the expenses, if
any, associated with the tenant�s unit, and with common areas of the property,
as applicable, that have contributed to the need for a rent increase.�

���� 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, 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.

���� 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.

���� 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)

���� 2.��� This act shall take
effect on the first day of the third month next following enactment, and shall
apply to rent increases that take effect on or after that date.

STATEMENT

���� Many New Jersey residents
struggle to satisfy the costs of renting a home.� These costs are often
particularly challenging for senior citizens, many of whom live on a
fixed-income.� New Jersey law presently requires a landlord to provide written
notice to the tenant whenever the landlord intends to increase rent.� State law
also prohibits �unconscionable� rent increases, a concept defined in case law
as one that would �shock the conscience� of a reasonable person.

���� Along with the existing rent
increase notice requirement, this bill would require the landlords of certain
senior housing to also provide an explanation for the increase.� More
specifically, the bill would require that if the tenant is a resident of a senior
citizen housing project, then the notice of increased rent would be required to
be in writing, and would include an explanation of why the rent is increasing.�
This explanation would:

���� (1)�� describe why the rent
increase is not unconscionable;

���� (2)�� confirm that the
increase complies with municipal ordinances, and other applicable laws; and

���� (3)�� list any expenses
associated with the tenant�s unit and common areas of the property that have
contributed to the need for the rent increase.

���� Additionally, this bill
adjusts the underlying statutory language concerning notice requirements prior
to rent increases to clarify that those notices have to be in writing.

���� As used in the bill, a �senior
citizen housing project� refers to a building with three or more dwelling
units, intended for, and solely occupied by, senior citizens.

���� The bill would take effect on
the first day of the third month next following enactment, and would apply to
rent increases that take effect on or after that date.