This bill aims to enhance transparency regarding properties that claim exemptions from rent control in New Jersey. It amends existing law to clarify that exemptions apply only to provisions that limit periodic rental increases, excluding other administrative or tenant protection requirements. Property owners are required to provide prospective tenants with detailed documentation, including the original certificate of occupancy and a statement of the exemption's expiration date, which must be prominently displayed in lease agreements. Additionally, municipal construction officials must maintain exemption claims and related documentation for a minimum of 40 years, while property owners must keep their documentation for the duration of ownership plus an additional 10 years.

The bill also establishes a searchable public registry of exempt properties to be maintained by the Department of Community Affairs (DCA) and mandates that property owners file annual certifications of compliance. Failure to provide required documentation within specified timeframes will result in the forfeiture of the exemption, subjecting the property to rent control. Municipalities may impose surcharges to cover compliance costs, and penalties for false certifications include treble damages and civil penalties. The bill is set to take effect immediately, with a 180-day compliance period for property owners.

Statutes affected:
Introduced: 2A:42-84.2, 2A:42-84.3, 2A:42-84.4