Bill Text: NJ S4241 | 2018-2019 | Regular Session | Introduced


Bill Title: Extends grace periods for rental late charges for certain tenants who receive public assistance payments.

Spectrum: Partisan Bill (Democrat 1-0)

Status: (Introduced - Dead) 2019-11-18 - Introduced in the Senate, Referred to Senate Community and Urban Affairs Committee [S4241 Detail]

Download: New_Jersey-2018-S4241-Introduced.html

SENATE, No. 4241

STATE OF NEW JERSEY

218th LEGISLATURE

 

INTRODUCED NOVEMBER 18, 2019

 


 

Sponsored by:

Senator  JOSEPH P. CRYAN

District 20 (Union)

 

 

 

 

SYNOPSIS

     Extends grace periods for rental late charges for certain tenants who receive public assistance payments.

 

CURRENT VERSION OF TEXT

     As introduced.

 


An Act concerning late fees for certain rental payments and revising various parts of P.L.1976, c.100.

 

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

 

     1.    Section 1 of P.L.1976, c.100 (C.2A:42-6.1) is amended to read as follows:

     1.    a.  A person to whom rent is due and payable [on the first of the] each month upon a lease or other agreement shall allow a period of five business days grace in which the rent due by a qualified tenant shall be paid.  No delinquency or other late charge shall be made which includes the period before the expiration of the grace period of five business days.

     b.    For any month in which rent is due and payable, the grace period shall not commence before the date on which the qualified tenant receives payment of public assistance.  If the qualified tenant receives multiple payments of public assistance during any month for which rent is due and payable, the grace period shall not commence before the date on which the qualified tenant receives the final payment of public assistance.  The lease or other agreement of the qualified tenant shall set forth the dates on which the qualified tenant is scheduled to receive public assistance during any month for which rent is due and payable.   

     c.     As used in this section [, "business] :

     "Business day" means any day other than a Saturday, Sunday, or State or federal holiday.

     "Public assistance" means payments received pursuant to Social Security Old Age Pensions, Railroad Retirement Pensions, other governmental pensions in lieu of Social Security Old Age Pensions, Social Security Disability Benefits, Supplemental Security Income, or Work First New Jersey.

     "Qualified tenant" includes any recipient of public assistance.

(cf: P.L.2001, c.142, s.1)

 

     2.    Section 3 of P.L.1976, c.100 (C.2A:42-6.3) is repealed.

 

     3.    This act shall take effect immediately and shall apply to any lease or other agreement that is entered into, or renewed, on or after the date of enactment.

 

 

STATEMENT

 

     This bill extends the grace period for rental late charges for certain persons who receive public assistance payments.

     Under current law, certain tenants are entitled to a grace period of five business days following the date in which rent is due and payable.  During this grace period, a landlord may not impose delinquency or other late charges on unpaid rent.  This law currently applies to the following tenants, to whom rent is payable on the first of each month: senior citizens receiving Social Security Old Age Pensions, Railroad Retirement Pensions, or other governmental pensions in lieu of Social Security Old Age Pensions; and recipients of Social Security Disability Benefits, Supplemental Security Income, or benefits under Work First New Jersey (i.e., "qualified tenants").

     This bill extends the current grace period to include the period of time before a qualified tenant receives a monthly public assistance payment.  For example, if the rent of a qualified tenant is due on the first day of the month, but the tenant receives payment of public assistance on the 10th day of the month, then the landlord may only impose late charges after the fifth business day following the 10th day of the month.  Under the bill, the lease agreement of a qualified tenant would be required to set forth the dates on which the qualified tenant is scheduled to receive public assistance for each month in which rent is due and payable.

     As used in the bill, "public assistance" is defined as payments received pursuant to Social Security Old Age Pensions, Railroad Retirement Pensions, other governmental pensions in lieu of Social Security Old Age Pensions, Social Security Disability Benefits, Supplemental Security Income, or Work First New Jersey. 

     The provisions of this bill apply to the same persons who are currently entitled to the grace period, except that the grace period would be provided for any qualified tenant, regardless of whether rent is due on the first of the month. 

     The bill would take effect immediately following the date of enactment and apply to any lease or other agreement that is entered into or renewed thereafter.

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