This bill expands the liability of individuals associated with limited liability companies (LLCs) and other commercial entities acting as residential landlords. It allows courts to hold members of member-managed LLCs, managers of manager-managed LLCs, and directors and officers of corporations jointly and severally liable for housing, building, and health code charges, as well as charges under the "Hotel and Multiple Dwelling Law." To establish this liability, certain conditions must be met, including the existence of at least three unpaid charges concerning the property, proper notice issued to relevant parties, and the individual having at least a 10 percent interest in the LLC. Additionally, an affirmative defense can be asserted if the individual lacked the ability to ensure payment of the charges.

The bill also amends landlord registration requirements, mandating that landlords organized as commercial entities provide the names and addresses of registered agents, members with significant interests, and corporate officers when registering. Furthermore, it allows municipalities to enforce unpaid charges as liens on properties after providing notice, provided the charges remain unpaid for a specified period. This legislative change aims to enhance accountability among landlords and improve compliance with housing regulations.

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