Sponsored by:
Assemblywoman YVONNE LOPEZ
District 19 (Middlesex)
SYNOPSIS
Authorizes residential tenant action for alleged unconscionable rent increase; appropriates $2 million.
CURRENT VERSION OF TEXT
As introduced.
An Act authorizing residential tenant action in cases of alleged unconscionable rent increase, supplementing Title 2A of the New Jersey Statutes, and making an appropriation.
Be It Enacted by the Senate and General Assembly of the State of New Jersey:
1. a. For the purposes of this section:
Consumer Price Index means the average of the annual increase, expressed as a percentage, in the consumer price index for all urban consumers in the New York City and Philadelphia metropolitan statistical areas during the preceding calendar year as reported by the United States Department of Labor.
Geographic area means within 10 miles of the residential property.
b. (1) Any notice of rent increase provided by a landlord to a residential tenant shall include the following:
(a) the contact information of an individual authorized to speak to the tenant about the proposed rent increase; and
(b) the following statement in a bold typeface in a font size no less than one point larger than the point size of the rest of the written statement or 11 points, whichever is larger:
NEW JERSEY LAW PROVIDES THAT A TENANCY SHALL RENEW ON A MONTH-TO-MONTH BASIS AT THE EXPIRATION OF THE LEASE TERM, UNLESS THE LEASE IS LAWFULLY TERMINATED. A LANDLORD MAY INCREASE THE RENT AT THE EXPIRATION OF A LEASE TERM, PROVIDED THAT THE NEW RENT COMPLIES WITH APPLICABLE FEDERAL, STATE, AND LOCAL LAWS AND IS NOT UNCONSCIONABLE. IF A TENANT BELIEVES THAT THE RENT INCREASE IS NOT PERMITTED OR IS UNCONSCIONABLE, THE TENANT HAS THE RIGHT TO REQUEST IN WRITING, WITHIN 10 DAYS OF RECEIPT OF THE NOTICE OF THE RENT INCREASE, THAT THE LANDLORD PROVIDE THE RATIONALE USED BY THE LANDLORD TO ESTABLISH THE AMOUNT OF THE RENT INCREASE, AND REQUEST A NEW NOTICE OF RENT INCREASE, AND NEGOTIATE FOR A DIFFERENT AMOUNT. THE LANDLORD IS REQUIRED TO PROVIDE THE TENANT WITH ITS RATIONALE WITHIN 10 DAYS AFTER RECEIPT OF THE TENANTS WRITTEN REQUEST. THE LANDLORD IS REQUIRED TO INCLUDE THE FOLLOWING INFORMATION AS PART OF THEIR RATIONALE FOR ESTABLISHING THE RENT INCREASE:
THE CHANGE IN THE CONSUMER PRICE INDEX SINCE THE LAST INCREASE IN RENT, THE START OF THE PRESENT LEAST TERM, OR WITHIN THE PAST TWO YEARS, WHICHEVER IS MOST RECENT;
THE LANDLORDS EXPENSES, CONTAINING SPECIFIC FINANCIAL DATA, ASSOCIATED WITH THE TENANTS UNIT AND WITH THE COMMON AREAS OF THE PROPERTY, WHICH CONTRIBUTED TO THE RENT INCREASE;
THE LANDLORDS PROFITABILITY, CONTAINING SPECIFIC FINANCIAL DATA, PRIOR TO THE RENT INCREASE, AND THE LANDLORDS ANTICIPATED PROFITABILITY, CONTAINING SPECIFIC FINANCIAL PROJECTIONS, AFTER THE PROPOSED RENT INCREASE;
A DESCRIPTION AND BRIEF COMPARISON OF HOW THE EXISTING AND PROPOSED RENT COMPARES TO RENTS CHARGED AT SIMILAR RENTAL PROPERTIES IN THE GEOGRAPHIC AREA, INCLUDING FAIR MARKET RENTS AND SMALL AREA MARKET RENTS;
THE LENGTH OF TIME SINCE THE LAST RENT INCREASE BY THE CURRENT LANDLORD AGAINST THE RESIDENTIAL TENANT;
A DESCRIPTION OF THE CONDITION OF THE PROPERTY, INCLUDING BUT NOT LIMITED TO, WHETHER THERE WERE MAINTENANCE REQUESTS OR CLAIMS RELATED TO HABITABILITY, AND WHETHER THERE WERE ANY, OR CURRENTLY ARE, CODE VIOLATIONS FOR THE TENANTS UNIT OR COMMON AREAS; AND
A DESCRIPTION OF WHY THE LANDLORD BELIEVES THAT THE PROPOSED RENT INCREASE IS NOT UNCONSCIONABLE.
IF A TENANT AND LANDLORD ARE UNABLE TO NEGOTIATE A RENT AMOUNT BEFORE THE DATE THAT A NEW LEASE TERM IS TO BEGIN, OR WITHIN 30 DAYS OF THE DATE THAT A NOTICE OF INTENT TO VACATE OR REMAIN IN THE UNIT IS REQUIRED BY THE CURRENT LEASE, WHICHEVER IS EARLIER, THEN THE TENANT MAY BRING AN ACTION IN THE SUPERIOR COURT, LAW DIVISION, SPECIAL CIVIL PART IN THE COUNTY IN WHICH THE PROPERTY IS LOCATED AGAINST THE LANDLORD FOR RAISING THE RENT BY AN UNCONSCIONABLE AMOUNT. AT COURT, THE LANDLORD, NOT THE TENANT, BEARS THE BURDEN OF PROVING THAT THE RENT INCREASE IS NOT UNCONSCIONABLE.
(2) A residential tenant who receives a notice of rent increase from a landlord and believes the increase in rent to be unconscionable, pursuant to the standards established by subsection d. of this section, may, within 10 days of receipt of the notice of rent increase, submit in writing a request for the landlord to provide the rationale used by the landlord to establish the amount of the rent increase and request a new notice of rent increase in a lesser amount.
(3) Within 10 days after the receipt of a residential tenants request, submitted pursuant to paragraph (2) of this subsection, the landlord:
(a) shall provide the residential tenant in writing with the rationale for the amount of the rent increase, which shall include the information required pursuant to paragraph (4) of this subsection; and
(b) may begin negotiating a rent amount by providing the residential tenant with a new notice of rent increase in a lesser amount than offered by the previous notice of rent increase.
(4) The landlords rationale, required pursuant to subparagraph (a) of paragraph (3) of this subsection, for the rent increase shall include the following:
(a) the change in the Consumer Price Index since the last increase in rent, the start