Enhances oversight of enforcement of municipal rent control and rent leveling ordinances; establishes Rental Control Ombudsman in DCA; appropriates $4 million.

S4172

SENATE, No. 4172

STATE OF NEW JERSEY

222nd LEGISLATURE

�

INTRODUCED MAY 11, 2026

Sponsored by:

Senator� BRIAN P. STACK

District 33 (Hudson)

Senator� ANGELA V. MCKNIGHT

District 31 (Hudson)

SYNOPSIS

���� Enhances oversight of enforcement of municipal rent
control and rent leveling ordinances; establishes Rent Control Ombudsman in
DCA; appropriates $4 million.��

CURRENT VERSION OF TEXT

���� As introduced.

��

An Act
concerning
enforcement of municipal rent control
and rent leveling ordinances
, supplementing Title
2A of the New Jersey Statutes and Title 52 of the Revised Statutes, and making
an appropriation.�

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

���� 1.� The Legislature finds and
declares that:

���� a.� Many members of the public
make major life decisions, such as deciding where to live, with reliance on the
idea that local laws designed to prevent their expenses from becoming
unmanageable, will be enforced;

���� b.� A tenant who enters a
lease agreement in a municipality with a rent control ordinance, and resides in
a home for which the ordinance is meant to apply, should be able to have
confidence that the requirements of the ordinance will be enforced;

���� c.� Although municipal rent
control ordinances are adopted by municipal governments, with only local
application, the Legislature has an interest, and responsibility, to ensure
that the residents of the State, after deciding to move into a home, are able
to have confidence that an existing rent control ordinance, if applicable to
the resident�s home, will be enforced; and�

���� d.� It is appropriate and in
the interest of the residents of the State for the Legislature to establish the
oversight and enforcement mechanisms of P.L.��� , c.��� (C.������� ) (pending
before the Legislature as this bill).�

���� 2.� a.� If the ordinances of a
municipality contain a rent control or rent leveling ordinance, then, in order
to address complaints of violations of the ordinance, the municipality shall
maintain:

���� (1)� one or more reasonable
procedures for investigating and addressing complaints; and

���� (2)� mandatory timelines for
providing initial responses to written complaints, and completing
investigations.�

���� b.� If a municipality does not
comply with the provisions of subsection a. of this section, or if a municipal
rent board or other administrative entity of the municipality fails to comply
with mandatory timelines established in compliance with paragraph (2) of
subsection a. of this section, there shall be a rebuttable presumption of
nonenforcement of the ordinance for the purposes of P.L.��� , c.��� (C.�������
) (pending before the Legislature as this bill).

���� 3.� a.� A
residential tenant who is adversely affected by a
municipality, or rent board or other administrative entity of the municipality,
that fails to enforce a rent control or rent leveling ordinance in violation of
section 2 of P.L.��� , c.��� (C.������� ) (pending before the Legislature as
this bill), shall be authorized to bring an action for relief in the Superior
Court, Law Division, Special Civil Part to seek enforcement of the ordinance,
if more than 30 days have elapsed since the municipality:

���� (1)� has missed a deadline
required pursuant to section 2 of P.L. , c.���
(C.������� ) (pending before the Legislature as this bill); or

���� (2)� has failed to respond for
more than 30 days to an enforcement-related request submitted by the tenant.�

���� b.� In an action initiated
pursuant to this section, the court may order, as appropriate in the interest
of justice, compliance with the ordinance, treble damages for rent overcharges,
a rent rollback, reasonable attorney�s fees and costs, and may impose a civil
penalty of up to $2,000 per affected dwelling unit.� The private right of
action established pursuant to this section shall exist independent of, and in
addition to, any enforcement by the municipality, and shall not be subject to
any administrative exhaustion requirement.

���� c.� A tenant association
representing the rights of a group of tenants shall be afforded the same
ability as an individual tenant pursuant to this section to bring an action for
relief in the Superior Court, Law Division, Special Civil Part, on behalf of a
group of tenants.�

���� 4.� a.� If the ordinances of a
municipality contains a rent control or rent leveling ordinance, but the
municipality, or the rent board or other administrative entity of the
municipality, has exhibited a pattern of willful non-enforcement of the
ordinance, then the Attorney General shall be authorized to bring an action in
the Superior Court to remedy this failure.� Following consideration of an
action initiated pursuant to this subsection, if a court determines that a
pattern of willful nonenforcement of a rent control or rent leveling ordinance
exists, the court may appoint a special master to oversee its enforcement,
order the municipality to pay a civil penalty to the affected tenants, and
issue other relief that the court determines appropriate in the interest of
justice.�

���� b.� A group of 10 or more
residential tenants, if each of the tenants are adversely affected by a
municipality�s non-enforcement of a rent control or rent leveling ordinance,
the group of tenants shall be permitted to petition the Attorney General to investigate
municipal nonenforcement of a rent control or rent leveling ordinance.� If the
Attorney General receives a petition pursuant to this subsection, or from the
Rent Control Ombudsman pursuant to section 5 of P.L.��� , c.��� (C.������� )
(pending before the Legislature as this bill), to investigate municipal
nonenforcement, the Attorney General shall respond to the petition within 60
days of receipt.�

���� 5.� There is established in
the Department of Community Affairs a Rent Control Ombudsman.� The Commissioner
of Community Affairs shall appoint the Rent Control Ombudsman, who shall serve
at the pleasure of the commissioner.� The Rent Control Ombudsman shall receive
complaints of municipal non-enforcement of a municipal rent control or rent
leveling ordinance, and refer matters, as appropriate, to the Attorney General,
who shall be authorized, pursuant to section 4 of P.L.��� , c.��� (C.������� )
(pending before the Legislature as this bill), to bring an action on the
tenant�s behalf.� The Rent Control Ombudsman shall publish one or more public
reports on an annual basis for the purposes of communicating the activities of
the ombudsman�s office, and identifying municipalities with patterns of
non-enforcement.� The Rent Control Ombudsman shall have the authority to
subpoena documents and testimony in furtherance of investigations.�

���� 6.� Any
statute
of limitations established in a rent control or rent leveling ordinance to
prevent a penalty for a violation of the ordinance prior to a certain date,
shall be tolled for any period during which the landlord has not been in
compliance with any requirement of the ordinance to provide any documentation
that may be required by the ordinance to demonstrate compliance with the
ordinance.� The tolling provision established pursuant to this section shall
apply to a claim, unless the claim has been dismissed or finally adjudicated
prior to the effective date of
P.L.��� , c.��� (C. ) (pending
before the Legislature as this bill)
.�

���� 7.� There is appropriated
$4,000,000 from the General Fund, of which:

���� a.� $2,000,000 shall be
provided to the Attorney General to support the activities required of the
Attorney General pursuant to P.L.��� , c.��� (C.������� ) (pending before the
Legislature as this bill); and

���� b.� $2,000,000 shall be
provided to the Department of Community Affairs to support the establishment
and operation of the Office of the Rent Control Ombudsman pursuant to section 5
of P.L.��� , c.��� (C.������� ) (pending before the Legislature as this bill).�

���� 8.� This act shall take effect
immediately.

STATEMENT

���� This bill is intended to enhance
oversight of the enforcement of municipal rent control and rent leveling
ordinances.�

���� The bill provides that, if a
municipal code contains a rent control or rent leveling ordinance, then, in
order to address complaints of violations of the ordinance, the municipality is
to be required to maintain:

�

one or more
reasonable procedures for investigating and addressing complaints; and

�

mandatory
timelines for providing initial responses to written complaints, and completing
investigations.�

If a municipality does not comply
with these requirements, there is to be a rebuttable presumption of
nonenforcement.

���� The bill expressly permits a
residential tenant who is adversely affected by a municipality that fails to
enforce a rent control or rent leveling ordinance in violation of the bill, to
bring an action for relief in Superior Court to seek enforcement of the
ordinance, if more than 30 days have elapsed since the municipality:

�

has missed a
deadline required by the provisions of the bill; or

�

has failed to
respond for more than 30 days to an enforcement-related request submitted by
the tenant.�

���� In response to an action
initiated pursuant to the bill, the court may order, as appropriate in the
interest of justice, compliance with the ordinance, treble damages for rent
overcharges, a rent rollback, reasonable attorney�s fees and costs, and may impose
a civil penalty of up to $2,000 per affected dwelling unit.� This private right
of action is to exist independent of, and in addition to, any enforcement by
the municipality, and is not to be subject to any administrative exhaustion
requirement.� A tenant association representing the rights of a group of
tenants is to be afforded the same ability as an individual tenant pursuant to
this bill to bring an action for relief in Superior Court, on behalf of a group
of tenants.�

���� If a municipality has
exhibited a pattern of willful non-enforcement of a rent control or rent
leveling ordinance, then the Attorney General is to be authorized to bring an
action in the Superior Court to remedy this failure.� Following consideration
of the action if a court determines that a pattern of willful nonenforcement
exists, the court may appoint a special master to oversee its enforcement,
order the municipality to pay a civil penalty to the affected tenants, and
issue other relief that the court determines appropriate in the interest of
justice.�

���� The bill provides that a group
of 10 or more residential tenants, if each are adversely affected by a
municipality�s non-enforcement of a rent control or rent leveling ordinance,
the group of tenants is to be permitted to petition the Attorney General to
investigate municipal nonenforcement of the ordinance.� If the Attorney General
receives a petition from a group of tenants, or from the Rent Control
Ombudsman, to investigate municipal nonenforcement, the Attorney General is
required to respond within 60 days.�

���� The bill establishes in the
Department of Community Affairs a Rent Control Ombudsman.� The bill directs the
Commissioner of Community Affairs to appoint the Rent Control Ombudsman, who is
to serve at the pleasure of the commissioner.� The Rent Control Ombudsman is to
receive complaints of municipal non-enforcement of a municipal rent control or
rent leveling ordinance, and refer matters, as appropriate, to the Attorney
General.� The bill also directs the Rent Control Ombudsman to issue one or more
public reports on an annual basis for the purposes of communicating the
activities of the ombudsman�s office, and identifying municipalities with
patterns of non-enforcement.� The Rent Control Ombudsman is to possess
authority to subpoena documents and testimony in furtherance of
investigations.�

���� The bill provides that statute
of limitations that may be established in a municipal rent control or rent
leveling ordinance to prevent a penalty for a violation of the ordinance prior
to a certain date, is to be tolled for any period during which the landlord has
not been in compliance with any requirement of the ordinance to provide any
documentation that may be required to demonstrate compliance with the
ordinance.� The tolling provision established by the bill is to apply to a
claim, unless the claim has been dismissed or finally adjudicated prior to the
effective date of this bill.�

���� The bill requires an
appropriation of $4 million from the General Fund, of which $2 million is to be
provided to the Attorney General to support the activities required of the
Attorney General pursuant to the bill, and $2 million is to be provided to the
Department of Community Affairs to support the establishment and operation of
the Office of the Rent Control Ombudsman.� The bill is to take effect
immediately.�