This bill expands the liability of individuals associated with limited liability companies (LLCs) and other commercial entities that act as residential landlords. It establishes that members of member-managed LLCs, managers of manager-managed LLCs, and corporate directors and officers can be held jointly and severally liable for housing, building, and health code violations, as well as charges under the "Hotel and Multiple Dwelling Law." To impose this liability, specific conditions must be met, including having at least three unpaid charges related to the property, proper notice to relevant parties, and the individual holding at least a 10 percent interest in the LLC. An affirmative defense is available if the individual can demonstrate limited involvement with the entity that prevented them from ensuring payment.

Additionally, the bill modifies landlord registration requirements, requiring entities to provide the names and addresses of registered agents, significant interest members, and corporate officers. It also allows municipalities to enforce unpaid charges as liens on properties after notifying the property owner, thereby enhancing accountability among landlords. Furthermore, the bill mandates that upon filing certain information, municipal clerks must notify the construction official and the Director of the Division of Taxation regarding the record owner's name and address, and if applicable, the registered agent. Municipalities are empowered to adjust their housing, building, and health codes to enforce charges for code violations as liens, which can only occur if the charge remains unpaid for over a year.

Statutes affected:
Introduced: 42:2C-30, 46:8-28, 46:8-28.1