The proposed bill seeks to protect residential tenants in New Jersey by capping the increase of certain recurring fees, which are defined as any charges not included in the base rent, such as fees for amenities, pets, parking, and convenience. Landlords are prohibited from raising these fees by more than 10 percent within a 12-month period, and tenants are restricted from entering subleases that would lead to fee increases beyond this limit. The bill allows landlords to establish an initial recurring fee for new tenancies, which will also be subject to the 10 percent increase cap in subsequent years.

To enforce these provisions, the bill outlines penalties for landlords who violate the fee cap, including a maximum recurring fee based on the previous term's fees, a $1,000 penalty per violation, and the ability for tenants to petition for lease termination and recover legal fees. Additionally, the bill amends the Anti-Eviction Act to classify violations of the fee cap as unconscionable, thereby preventing landlords from evicting tenants based on such violations. The legislation also clarifies definitions related to the bill, including "recurring fee," and states that its provisions are supplementary to existing laws regarding rent increases and do not interfere with lease agreements or eviction processes. The bill is set to take effect immediately upon passage.

Statutes affected:
Introduced: 2A:18-61.1