Establishes offense of harassment of residential tenant; expands liability of certain members of limited liability company that own residential rental properties.

S4231

SENATE, No. 4231

STATE OF NEW JERSEY

222nd LEGISLATURE

�

INTRODUCED MAY 14, 2026

Sponsored by:

Senator� BENJIE E. WIMBERLY

District 35 (Bergen and Passaic)

Senator� ANGELA V. MCKNIGHT

District 31 (Hudson)

SYNOPSIS

���� Establishes offense of harassment of residential
tenant; expands liability of certain members of limited liability company that
owns residential rental properties.

CURRENT VERSION OF TEXT

���� As introduced.

��

An Act

concerning residential rental properties and
amending various parts of the statutory law, and supplementing Title 2A and
Title 2C of the New Jersey Statutes and Title 42 of the Revised Statutes.

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

���� 1.��� (New section) a. A
person who is the owner of a residential rental property commits the offense of
harassment of a residential tenant if, with the intent to induce the tenant to
seek an alternate residence, the person:

���� (1) creates or maintains a
condition which endangers the safety or health of a tenant;

���� (2) interferes with or
disturbs the comfort, repose, peace or quiet of a tenant in the use and
occupancy of the property including, but not limited to, the interruption or
discontinuance of essential services;

���� (3)�� commits an act of
violence, or threatens an act of violence, including threatening to kill or
injure a tenant;

���� (4)�� creates or maintains
circumstances, through words or actions, which have a clear intention to incite
fear, apprehension, or danger in a tenant;

���� (5)�� repeatedly and
unnecessarily enters the residential rental property;

���� (6)�� initiates demolition of
or construction on the property;

���� (7)�� threatens to initiate
immigration proceedings against the tenant;

���� (8)�� files frivolous eviction
proceedings against the tenant;

���� (9) repeatedly, and through
aggressive language or actions, offers to compensate the tenant for vacating
the property;

���� (10) places outside of the
property, or otherwise removes from the property or destroys, the personal
effects or furniture of a tenant; or

���� (11) engages in any other
course of conduct intended to coerce a tenant to vacate a residential rental
property.

���� b.��� A person convicted of
harassment of a residential tenant is guilty of a disorderly persons offense,
except that:

���� (1) when the offense is
committed under any of the factual circumstances described in subsection c. of
this section, the person shall be guilty of a crime of the fourth degree;

���� (2) a person who is convicted
of a second offense of harassment of a residential tenant shall be guilty of a
crime of the fourth degree; and

���� (3)�� a person who is
convicted of a third or subsequent offense of harassment of a residential
tenant shall be guilty of a crime of the third degree.

���� c. There shall be a rebuttable
presumption that a person has committed an offense of harassment of a
residential tenant if a person engages in any prohibited conduct within six
months of:

���� (1) a tenant filing a
complaint concerning the person with a governmental agency;

���� (2) a tenant asserting rights
under a residential lease agreement with the person pursuant to the lease
agreement or relevant State law including, but not limited to, eviction
proceedings;

���� (3) a tenant�s participation
in a tenant organization;

���� (4) the initiation of a
dispute between the tenant and the person concerning rent, repairs, or the
habitability of the property; or

���� (5) a finding by the court
that the landlord violated the implied warranty of habitability.

���� d.��� A prosecutor may delay a
prosecution for a violation of paragraph (1), (2), (4), (5), (6), (7), (8),
(9), or (10) of subsection a. of this section for a period of 10 days to allow
the defendant to cure any actions that are the subject of the violation.� The
prosecutor shall� state, in writing, the actions to be taken by the defendant
to cure the violation.� If the defendant has complied with the terms
established by the prosecutor, the prosecutor may withdraw charges.

���� e.���� Any person who suffers
any ascertainable loss of moneys or property, real or personal, as a result of
a violation of this section may bring a civil action in any court of competent
jurisdiction. In any civil action under this section, in addition to any other
appropriate legal or equitable relief, the court may award:

���� (1) a civil penalty of not
less than $500 and not greater than $2,000 for the first violation;

���� (2) a civil penalty of not
less than $1,000 and not greater than $2,500 and treble damages for a second or
subsequent violation;

���� (3) punitive damages upon
proof of willful disregard of the law;

���� (4) reasonable attorney's fees
and other litigation costs reasonably incurred; and

���� (5) such other preliminary and
equitable relief as the court determines appropriate.�

���� f.���� The fact that a
prosecution for a violation of this section is not instituted or, where
instituted, terminates without a conviction shall not preclude a civil action
pursuant to this section. A final judgment rendered in favor of the State in
any criminal proceeding shall estop the defendant from denying the same conduct
in any civil action brought pursuant to this section.

���� g.��� A civil action under
this section shall not preclude the application of any other civil,
administrative, or criminal remedy under any other provision of law.

���� h. Nothing in this section
shall be construed to prevent a landlord from:

���� (1) filing an eviction
proceeding for cause or action for unpaid rent when necessary and prudent and
in good faith;

���� (2) imposing a rent increase
in accordance with relevant State law;

���� (3) conducting necessary
inspections of the property;

���� (4) performing necessary
repairs, maintenance, or code compliance actions for the property;

���� (5) communicating with a
tenant regarding lease compliance or violations; or

���� (6) entering the premises in
accordance with relevant State law.

���� i. Pursuant to the provisions
of R.S.40:48-2, a municipality may adopt an ordinance for the enforcement of
this section through a municipal rent leveling board or other board or
enforcement authority established by the municipality.

���� 2. a. (New section) Every
residential lease in this State shall contain a copy of the provisions of
section 1 of P.L.��� , c.��� (C. )
(pending before the Legislature as this bill).

���� b. A landlord who fails to
provide the notice required pursuant to subsection a. of this section shall be
subject to a fine of not more than $100, which may be collected and enforced by
Commissioner of the Department of Community Affairs pursuant to the
"Penalty Enforcement Law of 1999," P.L.1999, c.274 (C.2A:58-10 et
seq.).

���� 3.��� (New section) a. The
Commissioner of the Department of Community Affairs shall collect data on the
number charges and convictions for violations of section 1 of P.L.��� , c.���
(C.������� ) (pending before the Legislature as this bill), including the
number of repeat charges and convictions and the number of charges and
violations, including a breakdown by municipality and category of violation,
that involve any of the factual circumstances described in subsection c. of
section 1 of P.L.��� , c.��� (C.������� ) (pending before the Legislature as
this bill).

���� b. The commissioner shall
issue an annual report to the Governor and the Legislature pursuant to section
2 of P.L.1991, c.164 (C.52:14-19.1) concerning the data collected pursuant to
subsection a. of this section. The annual report shall be made available to the
public on the Department of Community Affairs website.

���� 4.��� 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
]

P.L.1974,
c.50
, 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"
, P.L.1967, c. 76
(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,
or a limited liability company,
the name and address of the
registered agent
, the members or shareholders with at least a 10 percent
interest in the entity,
and
[
corporate
]

the

officers
[
of
said corporation
]

or directors of the entity, as applicable
;

���� 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)

���� 5.��� 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 this section to the contrary, the members of a limited liability
company who possess at least a 10 percent interest in a residential rental
property shall be jointly and severally liable for a violation of section 1 of
P.L.��� , c.��� (C.������� ) (pending before the Legislature as this bill)
that occurs on or after the effective date of P.L.��� , c.��� (C.������� )
(pending before the Legislature as this bill).

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

���� 6.��� (New section)� a.� A
court may hold a corporation, limited liability company, or other legal or
commercial entity liable for charges issued to that entity pursuant to the
provisions of section 1 of
P.L. , c. (C. ) (pending
before the Legislature as this bill) that occur on or after the effective date
of P.L.��� , c.��� (C.������� ) (pending before the Legislature as this bill).

���� b.��� Pursuant to subsection
c. of section 30 of the �Revised Uniform Limited Liability Company Act,�
P.L.2012, c.50 (C.42:2C-30), with regard to any charge issued following the
effective date of P.L.��� , c.��� (C.������� ) (pending before the Legislature
as this bill), a court may hold the members of a member-managed limited
liability company, the managers of a manager-managed limited liability company,
and the directors and officers of a corporation, who exercise operational
control over a residential rental property jointly and severally liable for
charges issued pursuant to the provisions of section 1 of P.L. , c. (C. ) (pending
before the Legislature as this bill) that occurs on or after the effective date
of P.L.��� , c.��� (C.������� ) (pending before the Legislature as this bill),
so long as:

���� (1)�� (a) there are at least two
charges pursuant to section 1 of
P.L. , c. (C. ) (pending
before the Legislature as this bill) that occurs on or after the effective date
of P.L.��� , c.��� (C.������� ) (pending before the Legislature as this bill)
concerning the property leased to a tenant by the entity for residential
purposes; or

���� (b) one or more charge is for
a violation involving any of the factual circumstances described in subsection
c. of section 1 of P.L. , c.��� (C.������� ) (pending
before the Legislature as this bill) that occurred on or after the effective
date of P.L.��� , c.��� (C.������� ) (pending before the Legislature as this
bill);

���� (2)�� notice of the charge and
impending enforcement under this section has been issued to the address of the
record owner, the registered agent, the managing agent, the members and
managers in the case of a limited liability company, the directors and officers
in the case of a corporation, and 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).� If the
landlord is not registered, in violation of section 2 of P.L.1974, c.50 (C.46:8-28),
then the notice required under this paragraph shall not apply.� The notice
provided to an individual pursuant to this paragraph shall be sufficient even
if the corporation or limited liability company ceases to own the property, so
long as the same individual has a role as a registered agent, managing agent,
member, manager, director, or officer of the commercial entity serving as the
new owner of the property;

���� (3)�� the individual, if a
member of a member-managed limited liability company, possesses at least a 10
percent interest in the business;

���� (4)�� the individual does not
successfully assert an affirmative defense pursuant to subsection c. of this
section; and

���� (5) the individual knowingly
participated in or directed the conduct that led to the violation, or had the
authority and ability to prevent the violation and willfully failed to do so.

���� c.���� It is an affirmative
defense to joint and several liability under this section, if the defendant did
not have the ability to prevent a violation of section 1 of
P.L. , c. (C. ) (pending
before the Legislature as this bill) that occurs on or after the effective date
of P.L.��� , c.��� (C.������� ) (pending before the Legislature as this bill),
due to a limited duration of involvement with the commercial entity or for
another reason, if determined by the court to eliminate the defendant�s
culpability for the non-payment of the charge.

���� d.��� As used in this section,
�charge� means any fee, fine, penalty, or other charge issued to a landlord,
concerning residential property leased by the landlord, pursuant to section 1
of
P.L. , c. (C. ) (pending
before the Legislature as this bill) that occurs on or after the effective date
of P.L.��� , c.��� (C.������� ) (pending before the Legislature as this bill).

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

STATEMENT

���� This bill establishes the
offense of harassment of a residential tenant, and expands the liability of
certain individuals associated with limited liability companies in relation to
residential properties that they lease.

Offense
of Harassment of a Residential Tenant

���� Under the bill, a person
commits the offense of harassment of a residential tenant if, with the intent
to induce the tenant to seek an alternate residence, the person:

�

creates or maintains a condition which endangers the safety or
health of a tenant;

�

interferes with or disturbs the comfort, repose, peace or quiet
of a tenant in the use and occupancy of the property including, but not limited
to, the interruption or discontinuance of essential services;

�

commits an act of violence, or threatens an act of violence,
including threatening to kill or injure a tenant;

�

creates or maintains circumstances, through words or actions,
which have a clear intention to incite fear, apprehension, or danger in a
tenant;

�

repeatedly and unnecessarily enters the residential rental
property;

�

initiates demolition of or construction on the property;

�

threatens to initiate immigration proceedings against the tenant;

�

files frivolous eviction proceedings;

�

repeatedly, and through aggressive language or actions, offers to
compensate the tenant for vacating the property;

�

places outside of the property, or otherwise removes from the
property or destroys, the personal effects or furniture of a tenant; or

�

engages in any other course of alarming conduct or of repeatedly
committed acts with purpose to alarm or seriously annoy a tenant.

Criminal
Penalties

���� Harassment of a residential
tenant is a disorderly persons offense. However, it is a crime of the fourth
degree if a person is convicted twice, and it is a crime of the third degree if
a person is convicted on three or more occasions.� It is also a crime of the
fourth degree if a landlord is convicted of committing the offense in
retaliation for a tenant filing a complaint concerning the person with a
governmental agency; asserting rights under a residential lease agreement with
the person pursuant to the lease agreement or relevant State law including, but
not limited to, eviction proceedings; participation in a tenant organization;
or the initiation of a dispute between the tenant and the person concerning
rent, repairs, or the habitability of the property.� A disorderly persons
offense is punishable by up to six months imprisonment, a fine up to $1,000, or
both. A crime of the fourth degree is punishable by up to 18 months
imprisonment, a fine of up to $10,000, or both. A crime of the third degree is punishable
by a crime of the third degree is punishable by a term of three to five 6 years
imprisonment, a fine of up to $15,000, or both.

Procedures
for Prosecution

���� A prosecutor may� delay a
prosecution for a violation under the bill, provided the violation does not
involve an act of violence, for a period of 10 days to allow the defendant to
cure any actions that are the subject of the violation.� If the prosecutor
delays a prosecution, the prosecutor is required to state, in writing, the
actions to be taken by the defendant to cure the violation.� If the defendant
has complied with the terms established by the prosecutor, the prosecutor may
withdraw charges.

���� There is a rebuttable
presumption established under the bill that a landlord who acts in retaliation
for one of the aforementioned actions by a tenant has committed an offense of
harassment of a residential tenant under the bill.

Civil
Penalties

���� The bill further authorizes a
civil action and establishes penalties for violations under the bill. The bill
also authorizes a municipality to adopt an ordinance for the enforcement of
this bill through a municipal rent leveling board or other board or enforcement
authority established by the municipality. The bill clarifies that none of its
provisions are to be construed to prevent a landlord from making necessary
repairs to or performing maintenance on a residential rental property, or
conducting necessary inspections of the property. Every residential lease is
required to contain a copy of the provisions of the bill which establish the
offense of harassment of a residential tenant. A landlord who fails to provide
the required notice is subject to a fine of not more than $100.

Reporting
and Data Gathering by DCA

���� The bill requires the
Commissioner of the Department of Community Affairs to compile data on the
number charges and convictions for the offense of harassment of a residential
tenant, including the number of repeat charges and convictions. The commissioner
is required to issue an annual report to the Governor and the Legislature
concerning the number of charges and convictions, including repeat offenses. The
report is to be made available to the public on the Department of Community
Affairs website.

Liability
for Limited Liability Companies

�����
The bill also expands the liability of certain
individuals associated with limited liability companies and other commercial
entities in relation to residential properties that they lease. I
n
addition to retaining the ability to hold a limited liability company itself
liable for housing, building, and health code charges, and charges issued under
the "Hotel and Multiple Dwelling Law," (�HMDL�) P.L.1967, c.76
(C.55:13A-1 et seq.), a court may hold certain members of a limited liability
company that owns a residential rental property jointly and severally liable
for an offense of harassment of a residential tenant that occurred on or after
the effective date of the bill. The bill provides that only members who
exercise operational control over a residential rental property may be held jointly
and severally liable for charges issued pursuant to the provisions of the bill.

���� Specifically, the bill provides that a court may hold
certain members of a member-managed limited liability company, the managers of
a manager-managed limited liability company, and the directors and officers of
a corporation, jointly and severally liable for charges relating to an offense
of harassment of a residential rental tenant, so long as:

�

at least two charges have been filed relating to the offense, or one
or more charge is for a retaliatory violation;

�

notice of the charge and impending enforcement under this section
has been issued to the address of the record owner, the registered agent, the
managing agent, the members and managers in the case of a limited liability
company, the directors and officers in the case of a corporation, and each
holder of a recorded mortgage and other existing lienholders, if provided
within the landlord�s registration information pursuant;

�

the individual, if a member of a member-managed limited liability
company, possesses at least a 10 percent interest in the business;

�

the individual does not successfully assert an affirmative
defense under the bill; and

�

�the individual knowingly participated in or directed the conduct
that led to the violation, or had the authority and ability to prevent the
violation and willfully failed to do so.