[Second Reprint]
ASSEMBLY, No. 4336
STATE OF NEW JERSEY
220th LEGISLATURE
INTRODUCED JUNE 20, 2022
Sponsored by:
Assemblyman HERB CONAWAY, JR.
District 7 (Burlington)
Assemblywoman ANGELA V. MCKNIGHT
District 31 (Hudson)
Assemblywoman SHANIQUE SPEIGHT
District 29 (Essex)
SYNOPSIS
Prohibits annual increase in rent or lease payments of more than two percent for certain nursing homes except in certain circumstances.
CURRENT VERSION OF TEXT
As reported by the Assembly Aging and Senior Services Committee on October 13, 2022, with amendments.
An Act concerning restrictions on rent or lease agreements in certain nursing homes and supplementing Title 2A of the New Jersey Statutes.
Be It Enacted by the Senate and General Assembly of the State of New Jersey:
1. a. Notwithstanding the provisions of any other law to the contrary, a person who leases or rents the land or a building to an owner or operator of a nursing home for use therefor shall not increase or enter into any agreement to increase 1[such] the1 lease or rent payments 1applicable to the nursing home1 by more than 2[four] two2 percent annually unless such person 2[files a petition in the Superior Court, in the Office of the Special Civil Part Clerk in the county where the rental or leased premises are located] submits a request to implement the increase to the Department of Health, in a method and manner prescribed by the department2, and the 2[court] department2 finds good cause for the increase based on the following factors related to the land or building:
(1) heating;
(2) utilities;
(3) maintenance or janitorial services or materials;
(4) real estate taxes;
(5) property 2[insurances] insurance2;
(6) reasonable improvements to the land or building;
(7) reasonable services or amenities not previously provided;
(8) depreciation;
(9)repairs and replacements;
(10) a commensurate increase, if any, in the overall Consumer Price Index for New York-Northeastern New Jersey as published by the United States Department of Labor, Bureau of Labor Statistics as of September 30 of the year preceding the year in which the increase is sought to be implemented;
(11) a decrease in funds received by any agency of the federal government or pursuant to any act or enactment of the federal government;
(12) whether the nursing home owner or operator consents to the increase;
(13) any actions taken to mitigate the increase; and
1[(15)] (14)1 any other factor deemed appropriate by the court.
b. 2A person
who leases or rents the land or the building may file a petition in the
Superior Court, in the Office of the Special Civil Part Clerk in the county
where the rental or leased premises are located, to appeal the Department of
Health's decision following the person's request to increase the lease or rent
payment,
as submitted pursuant to subsection a. of this section.
c.2 A person who leases or rents the land on which or building in which a nursing home operates may file a petition in the Superior Court alleging violation of this section.
2[c.] d.2 A person who violates the provisions of this section shall be subject to a penalty equal to two and one-half times the monthly lease or rent payments for each violation. 2Such penalty shall be collected by the Commissioner of Health in a summary proceeding before a court of competent jurisdiction pursuant to the "Penalty Enforcement Law of 1999," P.L.1999, c.274 (C.2A:58-10 et seq.).2 The payment of such penalties shall be deposited into a fund to be used to offset the cost to the courts of administering the provisions of this section.
2[d.] e.2 As used in this section:
"Nursing home" means the same as the term is defined in section 1 of P.L.1975, c.397 (C.26:2H-29).
"Person" means the same as the term is defined in R.S.1:1-2.
2. This act shall take effect on the 366th day next following enactment, except that it shall only apply to a rent or lease agreement entered into or renewed after the effective date of this act.