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S4174
SENATE, No. 4174
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 transparency concerning properties claiming
exemption from rent control.
CURRENT VERSION OF TEXT
���� As introduced.
��
An Act
concerning rent control exemption and amending
and supplementing P.L.1987, c.153.
����
Be It
Enacted
by the Senate and General Assembly of
the State of New Jersey:
���� 1.��� Section 2 of P.L.1987,
c.153 (C.2A:42-84.2) is amended to read as follows:
���� 2.� a.� In any municipality
which has enacted or which hereafter enacts a rent control or rent leveling
ordinance, other than under the authority of P.L.1966, c.168 (C.2A:42-74 et
seq.), those provisions of the ordinance which limit the periodic or regular
increases in base rentals of dwelling units shall not apply to multiple
dwellings constructed after the effective date of this act, for a period of
time not to exceed the period of amortization of any initial mortgage loan
obtained for the multiple dwelling, or for 30 years following completion of
construction, whichever is less.
���� b.��� In the event that there
is no initial mortgage financing, the period of exemption from a rent control
or rent leveling ordinance shall be 30 years from the completion of
construction.
����
c.���� The exemption from
municipal rent control provided by P.L.1987, c.153 (C.2A:42-84.1 et seq.)
applies only to provisions of municipal ordinances that directly limit the
periodic or regular increases in base rentals of dwelling units.� The exemption
shall not extend to any other administrative, disclosure, registration, or
tenant protection requirement of a municipal rent control or rent leveling
ordinance.
(cf: P.L.1999, c.291, s.1)
���� 2.��� Section 3 of P.L.1987,
c.153 (C.2A:42-84.3) is amended to read as follows:
����
3.
��� The owner of any
multiple dwelling exempted from a rent control or rent leveling ordinance
pursuant to
[
this
act
]
P.L.1987,
c.153 (C.2A:42-84.1 et seq.)
, shall, prior to entering into any lease with
a person for tenancy of any premises located in the multiple dwelling, furnish
the prospective tenant with a written statement that the multiple dwelling in
which the premises is located is exempt from rent control or rent leveling for
[
such
]
the
time as may remain in the exemption period.�
The written statement shall
include a copy of the original certificate of occupancy, initial mortgage loan
documentation, the original claim of exemption filed with the municipality
pursuant to section 4 of P.L.1987, c.153 (C.2A:42-84.4), and a statement
calculating the specific date on which the exemption expires.
� Each lease
offered to a prospective tenant for any dwelling unit therein during the period
the multiple dwelling is
[
so
]
exempted
shall contain a provision notifying the tenant of the exemption
and the
specific date on which the exemption expires, which shall be prominently
displayed in a 12-point, boldface font on the first page of the lease
.
(cf: P.L.1987, c.153, s.3)
���� 3.��� Section 4 of P.L.1987,
c.153 (C.2A:42-84.4) is amended to read as follows:
����
4.
���
a.
� The
owner of any multiple dwelling claiming an exemption from a rent control or
rent leveling ordinance pursuant to
[
this
act
]
P.L.1987,
c.153 (C.2A:42-84.1 et seq.)
shall file with the municipal construction
official, at least 30 days prior to the issuance of a certificate of occupancy
for the newly constructed multiple dwelling, a written statement of the owner's
claim of exemption from an ordinance under
[
this
act
]
P.L.1987,
c.153 (C.2A:42-84.1 et seq.)
, including therein a statement of the date
upon which the exemption period
[
so
]
claimed shall
commence,
[
such
]
information
as may be necessary to effectively locate and identify the multiple dwelling
for which the exemption is claimed, and a statement of the number of rental
dwelling units in the multiple dwelling for which the exemption is claimed.�
The owner shall, at least 30 days prior to the date of the termination of the
exemption period afforded pursuant to
[
this
act
]
P.L.1987,
c.153 (C.2A:42-84.1 et seq.)
, file with the municipal construction official
a notice of the date of termination of the exemption period for the affected
multiple dwelling.�
A property shall be deemed subject to rent control if,
at any time, a municipality is unable to produce an original claim of exemption
filed at least 30 day prior to the issuance of a certificate of occupancy.
����
b.��� The municipal
construction official shall maintain each exemption claim and related
documentation submitted pursuant to subsection a. of this section for a minimum
of 40 years and a property owner shall maintain the property owner�s exemption
claim and related documentation for the duration of the property ownership plus
an additional 10 years.�
����
c.���� The Department of
Community Affairs, in cooperation with each municipality in this State that has
enacted a rent control or rent leveling ordinance, shall establish and maintain
on the department�s Internet website a searchable public registry of properties
exempted from a rent control or rent leveling ordinance pursuant to P.L.1987,
c.153 (C.2A:42-84.1 et seq.).� The owner of a multiple dwelling exempted from a
rent control or rent leveling ordinance shall provide to the department for
inclusion on the registry:
����
(1)�� complete initial
mortgage loan documentation;
����
(2)�� the original
certificate of occupancy as proof of the claim of exemption as filed with the
municipality pursuant to section a. of this section;
����
(3)�� the certification
required pursuant to section 5 of P.L.��� ,��� (C.������� ) (pending before the
Legislature as this bill); and
����
(4)�� proof, as determined
by the department, of regular tenant notification from the property�s initial
time of rental pursuant to section 3 of P.L.1987, c.153 (C.2A:42-84.3).
����
d.��� An owner who fails to
provide the documentation required by subsection c. of this section within 180
days of the effective date of P.L.��� ,��� (C.������� ) (pending before the
Legislature as this bill), or within 90 days of acquiring a property claiming
exemption, shall be deemed to have forfeited any claim of exemption.� The
property shall be subject to rent control until the time as the owner provides
complete documentation and the department confirms the exemption.
(cf: P.L.1987, c.153, s.4)
���� 4.��� (New section) A
municipality may require by ordinance that a person applying for a certificate
of occupancy to pay a surcharge fee in an amount necessary to cover the actual
costs of the municipality to comply with P.L.��� , c.��� (C.������� ) (pending
before the Legislature as this bill).
���� 5.��� (New section) a.� A
property owner exempt from rent control pursuant to P.L.1987, c.153
(C.2A:42-84.1 et seq.) shall file an annual certification, in a form and manner
determined by the Department of Community Affairs, affirming continued
compliance with the requirements of P.L.1987, c.153 (C.2A:42-84.1 et seq.).�
The filing of a false certification shall constitute a violation of the New
Jersey consumer fraud act P.L.1960, c.39 (C.56:8-1 et seq.) and the property
owner shall also be liable for treble damages, plus attorney fees, and a civil
penalty of not more than $20,000 for each offense.� The penalty prescribed by
this subsection shall be collected and enforced by summary proceedings under
the "Penalty Enforcement Law of 1999," P.L.1999, c.274 (C.2A:58-10 et
seq.).
���� b.��� Nothing in P.L.��� ,
c.��� (C.������� ) (pending before the Legislature as this bill) shall be
construed to establish new substantive rights or obligations beyond those
established by P.L.1987, c.153 (C.2A:42-84.1 et seq.).
���� 6.��� (New section) The
Department of Community Affairs shall promulgate rules and regulations,
pursuant to the "Administrative Procedure Act," P.L.1968, c.410
(C.52:14B-1 et seq.), to effectuate the purposes of this act.
���� 7.��� This act shall take
effect immediately and shall apply to properties claiming exemption from rent
control pursuant to P.L.1987, c.153 (C.2A:42-84.1 et seq.), but shall remain
unenforceable against the owners of those properties until the 180th day after
the date of enactment.
STATEMENT
���� This bill enhances
transparency concerning properties claiming an exemption from rent control by
amending P.L.1987, c.153 (C.2A:42-84.1 et seq.) to establish certain
documentation requirements for municipalities and property owners and requiring
the Department of Community Affairs (DCA) to maintain a database on the DCA�s
Internet website of properties exempt from rent control.
���� Specifically, the bill amends
existing law concerning the applicability of rent control ordinances by
providing that the exemption from municipal rent control under the law applies
only to provisions of municipal ordinances that directly limit the periodic or
regular increases in base rentals of dwelling units.� The exemption is to not
extend to any other administrative, disclosure, registration, or tenant
protection requirement of a municipal rent control or rent leveling ordinance.
���� The bill further amends
existing law concerning notice to prospective lessees requiring property owners
to provide lessees with
the original certificate of occupancy, initial
mortgage loan documentation, the original claim of exemption filed with the
municipality, and a statement calculating the specific date on which the
exemption expires.� Further, the bill requires a lease contain a provision
notifying the tenant of the exemption and the specific date on which the
exemption expires, which is to be prominently displayed in a 12-point, boldface
font on the first page of the lease.
���� The bill also provides that a
municipal construction officer is to maintain each exemption claim and related
documentation submitted pursuant to the bill for a minimum of 40 years and a
property owner is to maintain the property owner�s exemption claim and related
documentation for the duration of the property ownership plus an additional 10
years.� A property is to be deemed subject to rent control if at any time a
municipality is unable to produce an original claim of exemption filed at least
30 day prior to the issuance of a certificate of occupancy.
���� The bill directs the DCA, in
cooperation with each municipality in this State that has enacted a rent
control or rent leveling ordinance, to establish and maintain on the DCA�s
Internet website a searchable public registry of properties exempted from a
rent control or rent leveling ordinance pursuant to P.L.1987, c.153
(C.2A:42-84.1 et seq.).� The owner of a multiple dwelling exempted from a rent
control or rent leveling ordinance is to provide to the DCA for inclusion on
the registry certain information enumerated in the bill.� An owner who fails to
provide the documentation required by the bill within 180 days of the effective
date of the bill, or within 90 days of acquiring a property claiming exemption,
is to be deemed to have forfeited any claim of exemption.� The property is to
be subject to rent control until the time as the owner provides complete
documentation and the DCA confirms the exemption.
���� The bill authorizes a
municipality to impose certain surcharges to cover the actual costs of
municipal compliance with the bill, to mitigate potential State mandate
implications.
���� The bill provides that a
property owner exempt from rent control pursuant to P.L.1987, c.153
(C.2A:42-84.1 et seq.) is to file an annual certification, in a form and manner
determined by the DCA, affirming continued compliance with the requirements of
P.L.1987, c.153 (C.2A:42-84.1 et seq.).� The filing of a false certification is
to constitute a violation of the New Jersey consumer fraud act and the property
owner is also to be liable for treble damages, plus attorney fees, and a civil
penalty of not more than $20,000 for each offense.� The penalty is to be
collected and enforced by summary proceedings under the "Penalty
Enforcement Law of 1999," P.L.1999, c.274 (C.2A:58-10 et seq.).
���� Nothing in the bill is to be
construed to establish new substantive rights or obligations beyond those
established by P.L.1987, c.153 (C.2A:42-84.1 et seq.).
���� The bill is to take effect
immediately and is to apply to properties claiming exemption from rent control
pursuant to P.L.1987, c.153 (C.2A:42-84.1 et seq.) on the date of enactment,
the owners of which shall have 180 days from the date of enactment to comply
with the provisions of the bill.