This bill establishes statewide rent control in New Jersey, limiting how much landlords can increase rent for rental units. Specifically, landlords are prohibited from raising rent for current tenants by more than four percent over a five-year period or more than two percent in any single year. For new tenancies, rent increases are capped at ten percent over the last term of the previous tenancy. The bill also allows landlords to apply for a waiver of these limits through the Commissioner of Community Affairs, who will assess whether the proposed increase would cause undue hardship based on various financial factors. If granted, the rent for existing tenants cannot exceed six percent over the previous rental term within a five-year period.

Additionally, the bill imposes penalties on landlords who violate these rent increase limits, requiring them to pay the greater of $500 or three times the difference between the actual increase and the allowable increase, along with reasonable attorney fees. The bill specifies that waivers cannot be granted if the landlord has outstanding state or municipal violations related to the property. The legislation is set to take effect immediately but will remain inoperative until the first day of the seventh month following its enactment.