Bill Text: NJ A4150 | 2010-2011 | Regular Session | Introduced
Bill Title: Limits applicability of vacancy decontrol under local rent control ordinances under certain circumstances.
Spectrum: Partisan Bill (Democrat 2-0)
Status: (Introduced - Dead) 2011-06-20 - Introduced, Referred to Assembly Housing and Local Government Committee [A4150 Detail]
Download: New_Jersey-2010-A4150-Introduced.html
Sponsored by:
Assemblyman RUBEN J. RAMOS, JR.
District 33 (Hudson)
Assemblyman RALPH R. CAPUTO
District 28 (Essex)
SYNOPSIS
Limits applicability of vacancy decontrol under local rent control ordinances under certain circumstances.
CURRENT VERSION OF TEXT
As introduced.
An Act concerning rent control and damaged rental units, and supplementing chapter 4 of Title 20 of the Revised Statutes.
Be It Enacted by the Senate and General Assembly of the State of New Jersey:
1. a. In any municipality in which an ordinance regulating rents is in effect, if a rental dwelling unit becomes vacant due to damage to the rental unit from fire or emergency, the maximum rent authorized for that unit, whenever it shall again be offered for rent, shall not exceed the rent that would have been authorized for that unit if there had been no vacancy or change of tenancy for the unit. This section shall not apply to a rental premises in which all dwelling units were destroyed by fire or other emergency.
b. If an owner of a rental property in which some, but not all, of the rental dwelling units were destroyed by fire or other emergency, receives insurance proceeds from a hazard insurance policy regarding those dwelling units, and does not begin to make repairs or rebuild the damaged rental units within one year of the receipt of the insurance proceeds, all of the rental dwelling units in the rental premises shall be deemed to be subject to any rent control or rent leveling ordinances which may be in effect in the municipality, regardless of whether any of the units had previously been exempted from a rent control or rent leveling ordinance.
2. This act shall take effect immediately.
STATEMENT
This bill would prohibit the application of a vacancy decontrol exemption provided under a local rent control ordinance to a rental unit damaged by fire or emergency, when that unit is rebuilt and again offered for rental. The bill does not apply to rental premises in which all dwelling units are destroyed. The bill also provides that unless a landlord begins to make repairs to a damaged rental unit within one year of receiving insurance proceeds, all of the remaining rental units in the building will be deemed to be subject to any existing municipal rent control ordinances, regardless of whether those units were previously exempt under vacancy decontrol exceptions to the ordinance. Some landlords have been reported to delay repairs on damaged units for longer than a year, in order to discourage rental to the previous tenants, which allows the unit to be deemed vacant and eligible for an exemption under some municipal rent control ordinances. The bill removes this incentive to the landlord to delay repairs to the rental property in municipalities with rent control ordinances. Furthermore, the bill creates a disincentive for a landlord who does not begin rehabilitation efforts on a destroyed-dwelling unit within one year of receiving insurance proceeds, by subjecting all of the units in the building to any rent control ordinance which may be in place, regardless of whether those units were previously exempt by vacancy or change in tenants.
