This bill establishes a statewide limitation on rent increases for residential landlords in New Jersey, prohibiting them from raising rent on a dwelling unit by more than 5 percent plus the percentage change in the cost of living, or 10 percent, whichever is lower, within a 12-month period. The bill aims to address the financial challenges faced by renters in the state, as a significant portion of them spend more than 35 percent of their income on rent. It includes specific exemptions from these limitations, such as non-residential properties, affordable housing units, dormitories, newly constructed units, and certain single-family dwellings, among others.

Additionally, the bill reinforces existing protections against unconscionable rent increases and allows tenants to challenge violations in court. It also stipulates that any rent increase exceeding the established limits between September 1, 2024, and the bill's enactment will be adjusted to comply with the new regulations. The Commissioner of Community Affairs is authorized to adopt necessary rules and regulations to implement the bill, which will take effect immediately and be retroactive to September 1, 2024.