This bill amends the rent receivership statute in New Jersey to establish a mandatory requirement for courts to appoint a receiver under specific conditions. The court shall appoint a receiver if a building is found to be in violation of state or municipal codes that endanger tenant health and safety, or if there is a clear pattern of recurrent code violations. The bill clarifies that the court is not limited to considering only the evidence provided by the plaintiff when making this determination. Additionally, if the court cannot identify a suitable receiver, it is required to appoint an alternative qualified party.

The bill also includes provisions that allow the court to dismiss a complaint if the owner can demonstrate timely repairs to the cited violations or if the tenant is in default of their obligations under landlord-tenant law. Furthermore, it specifies that any costs incurred by a mortgage holder or lienholder acting as a receiver can be added to the unpaid balance due, and it does not relieve the owner of their obligations for taxes or other municipal charges. This legislation is in response to recommendations from the New Jersey Law Revision Commission aimed at improving the interpretation and application of the receivership act.

Statutes affected:
Introduced: 2A:42-117, 2A:42-122, 2A:42-123