Bill Text: NJ S4174 | 2026-2027 | Regular Session | Introduced
Bill Title: Enhances transparency concerning properties claiming exemption from rent control.
Sponsorship: Partisan Bill (Democrat 2)
Status: (Introduced) 2026-05-11 - Introduced in the Senate, Referred to Senate Community and Urban Affairs Committee [S4174 Detail]
Download: New_Jersey-2026-S4174-Introduced.html
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.
