This bill revises existing laws concerning exemptions from municipal rent control and rent leveling ordinances for newly constructed multiple dwellings. It establishes that the exemption period is linked to the initial mortgage loan of the original owner and cannot be reset or extended due to changes in ownership or financing. The bill mandates that only the original owner can file for an exemption before construction is completed, and if no valid filing is made, the municipal rent control ordinance will automatically apply. Additionally, it specifies that buildings constructed for sale as individual units are ineligible for the exemption, regardless of subsequent rental.

The legislation introduces new requirements for claiming exemptions, including the obligation for owners to submit a claim to the municipal construction official at least 30 days before obtaining a certificate of occupancy. It also requires owners to provide prospective tenants with written statements about the exemption status and to include specific information in lease agreements during the exemption period. The bill emphasizes truthful disclosure in all exemption-related notices and establishes penalties for misrepresentation. Tenants are granted the right to petition municipal rent boards to verify compliance with these requirements, and the bill clarifies that the exemption only pertains to rental increase limitations, not other municipal regulations. It will take effect immediately for properties constructed under permits issued after the original law's effective date.

Statutes affected:
Introduced: 2A:42-84.1, 2A:42-84.2, 2A:42-84.3, 2A:42-84.4