This bill authorizes residential tenants in New Jersey to take legal action against landlords for alleged unconscionable rent increases. It establishes a process whereby tenants can request a written rationale from their landlord regarding the proposed rent increase within 10 days of receiving the notice. The landlord is required to respond with specific financial information, including changes in the Consumer Price Index, expenses related to the tenant's unit, and a comparison of the proposed rent to similar properties in the area. If negotiations fail within a specified timeframe, tenants may bring their case to court, where the burden of proof lies with the landlord to demonstrate that the increase is not unconscionable.

Additionally, the bill includes provisions to protect tenants during the legal process, such as prohibiting landlords from initiating certain eviction actions while a tenant's case is pending. It also ensures that court records related to these actions remain confidential. The bill appropriates $2 million to the Administrative Office of the Courts for a public awareness campaign and training for judges on the new policies. The act is set to take effect six months after enactment, allowing for necessary administrative preparations.