Establishes certain requirements concerning unconscionable rent increases for residential rental properties.

S4173

SENATE, No. 4173

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

���� Establishes certain requirements concerning
unconscionable rent increases for residential rental properties.

CURRENT VERSION OF TEXT

���� As introduced.

��

An Act
concerning unconscionable rent increases for
residential rental properties, supplementing Title 2A, and amending P.L.1974,
c.49 and P.L.1970, c.210.

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

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

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

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

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

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

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

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

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

����� (8)�
proper registration of the property with the municipality or Department of
Community Affairs, as applicable; and

����� (9)�
whether the property falsely claimed exemption from a rent control ordinance.

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

����� c.�
(1)� For the purposes of this subsection, �transparency requirement� means any
applicable transparency requirement established by local, State, or federal
law, including at a minimum:

����� (a)
complete and accurate certificate of registration pursuant to section 2 of
P.L.1974, c.50 (C.46:8-28);

����� (b)
provision of a complete and accurate certificate of registration to each tenant
pursuant to section 3 of P.L.1974, c.50 (C.46:8-29);

����� (c)
advisement to each tenant or prospective tenant of any municipal special
assistance list;

����� (d)
distribution and display of the Truth-In-Renting guide, pursuant to section 4
of P.L.1975, c.310 (C.46:8-46); and

����� (e)
rent or registration statement, as may be required by the municipality in which
the property is located.

����� (2)�
Notwithstanding the provisions of section 7 of P.L.1974, c.50 (C.46:8-33), a
rent increase instituted by a landlord in knowing violation of a transparency
requirement shall be presumed unconscionable.

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

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

���� 2.� (New section)� Notwithstanding
any damages awarded pursuant to any other remedy available to a tenant for a
violation of the unconscionability provisions of P.L. c.
(C. ) (pending before the Legislature as this bill),
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 landlord violated the unconscionability provisions of
P.L. c. (C. ) (pending
before the Legislature as this bill), the tenant shall be entitled to a
reformation of the lease amount for 12 months to the rental rate paid by the
tenant under the most recent conscionable lease agreement, to recover treble
damages on any amount paid by the tenant determined to be excessive and
unconscionable, and to recover a $2,000 civil penalty 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
the violation.

���� 3.� (New section)� a.� For the
purposes of this section:

����
�Consumer Price
Index� means the average of the annual increase, expressed as a percentage, in
the consumer price index for all urban consumers in the New York City and
Philadelphia metropolitan statistical areas during the preceding calendar year
as reported by the United States Department of Labor.

���� �Geographic
area� means within 10 miles of the residential property.

���� b.� (1)� A residential tenant
who receives a notice of rent increase from a landlord and believes the
increase in rent to be unconscionable, pursuant to the standards established by
subsection d. of this section, may, within 10 days of receipt of the notice of
rent increase, submit in writing a request for the landlord to provide the
rationale used by the landlord to establish the amount of the rent increase and
request a new notice of rent increase in a lesser amount.�

���� (2)� Within 10 days after the
receipt of a residential tenant�s request, submitted pursuant to paragraph (1)
of this subsection, the landlord:

���� (a)� shall provide the
residential tenant in writing with the rationale for the amount of the rent
increase, which shall include the information required pursuant to paragraph (3)
of this subsection; and

���� (b)� may begin negotiating a
rent amount by providing the residential tenant with a new notice of rent
increase in a lesser amount than offered by the previous notice of rent
increase.

���� (3)� The landlord�s rationale,
required pursuant to subparagraph (a) of paragraph (2) of this subsection, for
the rent increase shall include the following:

���� (a)� the change in the
Consumer Price Index since the last increase in rent, the start of the present
least term, or within the past two years, whichever is most recent;

���� (b)� (i)� the landlord�s
expenses, containing specific financial data, associated with the tenant�s unit
and with the common areas of the property, which contributed to the rent
increase;

���� (ii)� the landlord�s
profitability, containing specific financial data, prior to the rent increase,
and the landlord�s anticipated profitability, containing specific financial
projections, after the proposed rent increase;

���� (iii)� the information
required pursuant to sub-subparagraphs (i) and (ii) of this subparagraph shall
include, but not be limited to: the financial impact of new ownership or of
refinancing of the property, and improvements and maintenance to the rental
unit over the duration of the previous lease term;

���� (c)� a description and brief
comparison of how the existing and proposed rent compares to rents charged at
similar rental properties in the geographic area, including fair market rents
and small area market rents;

���� (d)� the length of time since
the last rent increase by the current landlord against the residential tenant;

���� (e)� a description of the
condition of the property, including but not limited to, whether there were
maintenance requests or claims related to habitability, and whether there were
any, or currently are, code violations for the tenant�s unit or common areas;
and

���� (f)� a description of why the
landlord believes that the proposed rent increase is not unconscionable.�

���� c.� For a residential rental
premises with an active tenant association, if a residential tenant, or tenant
association, and landlord are unable to negotiate a rent amount before the date
that a new lease term is to begin, then the tenant association may bring action
in a court of competent jurisdiction against the landlord for raising rent by
an unconscionable amount.

���� d.� The landlord shall bear
the burden of proof to demonstrate that a rent increase is conscionable.�

���� e.� (1)� If a court of
competent jurisdiction finds that the landlord�s most recent notice of rent
increase offered an increase in rent in an unconscionable amount, that the
landlord did not include in the notice of rent increase the required statement
specified pursuant to paragraph (1) of subsection b. of this section, or
provide the rationale required pursuant to paragraph (3) of subsection b. of
this section, the court shall impose the penalties established by section 2 of
P.L.��� , c.��� (C.��������� ) (pending before the Legislature as this bill),
and shall require the tenant to pay any arrears accrued by the tenant to the
landlord in a timeframe determined by the court based upon relevant factors
considered by the court pursuant to subsection d. of this section.

���� (2)� Pursuant to subsection c.
of section 1 of P.L.��� , c.���
(C. ) (pending
before the Legislature as this bill), if a court of competent jurisdiction
finds that the landlord is in violation of transparency requirements, the court
shall impose the penalties established by section 2 of P.L.��� , c.���
(C.��������� ) (pending before the Legislature as this bill), and shall require
the tenant to pay any arrears accrued by the tenant to the landlord in a
timeframe determined by the court based upon relevant factors considered by the
court pursuant to subsection d. of this section.� If the court finds that a
multiple dwelling is the site of a clear and convincing pattern of recurrent
transparency violations, which may be shown by proofs that the landlord has
violated three or more different transparency requirements or has violated a
transparency requirement with regard to more than 20 percent of the units in
the multiple dwelling, the court may require the landlord to offer each tenant
in the multiple dwelling a reformation of the lease amount for 12 months to the
rental rate paid by the tenant under the most recent conscionable lease
agreement

���� (2)� If a court of competent
jurisdiction finds that the landlord�s most recent notice of increase offered
an increase in rent in a conscionable amount, the court shall require the
tenant to pay the landlord any arrears accrued by the tenant while the tenant�s
action was pending in court, including the amounts disputed.

���� f.� (1)� A landlord shall not
bring an eviction action against a residential tenant pursuant to subsections
a., f., i., or j. of section 2 of P.L.1974, c.49 (C.2A:18-61.1) during the
period of time in which the residential tenant�s action bought against the
landlord pursuant to subsection c. of this section is pending in a court of
competent jurisdiction.�

���� (2)� The provisions of this
subsection shall not be construed to prohibit a landlord from bringing an
eviction action against a residential tenant pursuant to subsections a., f.,
i., or j. of section 2 of P.L.1974, c.49 (C.2A:18-61.1), at any time for any
reason unrelated to the disputed rent increase.

���� g.� The provisions of this
section shall not be construed to limit a residential tenant�s ability to
challenge a proposed rent increase in defense of an eviction action or to file
separate claims against a landlord, including, but not limited to claims filed
pursuant to P.L.1960, c.39 (C.56:8-1 et seq.).

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

���� i.� Court records concerning
an action brought by a residential tenant against a landlord pursuant to
subsection c. of this section shall remain confidential and shall be excluded
from public access.

���� 4.� 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 notice to quit and 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.

���� 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.

����
s.� The landlord is not in
violation of any transparency requirement, as defined pursuant to subsection c.
of section 1 of P.L.��� , c.��� (C.��������� ) (pending before the Legislature
as this bill).

���� 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)

���� 5.� Section 1 of P.L.1970,
c.210 (C.2A:42-10.10) is amended to read as follows:

���� No landlord of premises or
units to which
[
this
act
]

P.L.1970,
c.210 (C.2A:42-10.10 et seq.)
is applicable shall serve a notice to quit
upon any tenant or institute any action against a tenant to recover possession
of premises, whether by summary dispossess proceedings, civil action for the
possession of land, or otherwise:

���� a.� As a reprisal for the
tenant's efforts to secure or enforce any rights under the lease or contract,
or under the laws of the State of New Jersey or its governmental subdivisions,
or of the United States; or

���� b.� As a reprisal for the
tenant's good faith complaint to a governmental authority of the landlord's
alleged violation of any health or safety law, regulation, code or ordinance,
or State law or regulation which has as its objective the regulation of premises
used for dwelling purposes; or

���� c.� As a reprisal for the
tenant's being an organizer of, a member of, or involved in any activities of,
any lawful organization; or

���� d.� On account of the tenant's
failure or refusal to comply with the terms of the tenancy as altered by the
landlord, if the landlord shall have altered substantially the terms of the
tenancy as a reprisal for any actions of the tenant set forth in
[
subsection
]

subsections

a
.
, b
.
, and c
.
of
this
section
[
1 of this act
]
. Substantial
alteration shall include the refusal to renew a lease or to continue a tenancy
of the tenant without cause
; or

����
e.� As reprisal for the
tenant or tenant association filing a complaint alleging that the landlord has
instituted an unconscionable rent increase
.

���� Under subsection b
.
of
this section the tenant shall originally bring his good faith complaint to the
attention of the landlord or his agent and give the� landlord a reasonable time
to correct the violation before complaining to a� governmental authority.

���� A landlord shall be subject to
a civil action by the tenant for damages and other appropriate relief,
including injunctive and other equitable remedies, as may be determined by a
court of competent jurisdiction in every case in which the landlord has violated
the provisions of this section.�
If the violation is of subsection e. of
this section, the landlord shall be subject to the penalties established
pursuant to section 2 of P.L.��� , c.��� (C.��������� ) (pending before the
Legislature as this bill).

(cf: P.L.1970, c.210, s.1)

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

STATEMENT

���� This bill establishes criteria
for a court to determine whether a rent increase is unconscionable, no single
factor of which is to be the sole reason for determining unconscionability.�
The landlord would have the burden of proof to demonstrate that the rent
increase is not unconscionable.� The bill additionally establishes that a rent
increase instituted by a landlord in knowing violation of a transparency
requirement, as defined in the bill, is presumed unconscionable.

���� The bill establishes penalties
for violation of the unconscionability provisions of the bill, including a
reformation of the lease amount for 12 months to the rental rate paid by the
tenant under the most recent conscionable lease agreement, and treble damages,
$2,000 in civil penalties, and reasonable costs incurred in proving the
violation, to be paid to the tenant.

���� The bill further establishes a
cause of action for the tenant association of a multiple dwelling to bring
action against the landlord of the multiple dwelling for an unconscionable rent
increase after certain notification requirements and negotiation attempts.� The
landlord would be subject to the penalty provision and, at the court�s
discretion, including a reformation of the lease amount for 12 months to the
rental rate paid by the tenant under the most recent conscionable lease
agreement for each tenant in the multiple dwelling in a case where the court
finds that the multiple dwelling is the site of a clear and convincing pattern
of recurrent transparency violations.

���� The bill makes a landlord�s
violation of transparency requirements prohibitive of filing an eviction action
and establishes reprisal against tenants for a complaint alleging an
unconscionable rent increase as a separate violation for the purpose of penalties.