Bill Text: NJ A5114 | 2022-2023 | Regular Session | Introduced
Bill Title: Establishes certain notice and compensation requirements for residential tenant displaced for purpose of renovation.
Spectrum: Partisan Bill (Democrat 1-0)
Status: (Introduced - Dead) 2023-01-26 - Introduced, Referred to Assembly Housing Committee [A5114 Detail]
Download: New_Jersey-2022-A5114-Introduced.html
Sponsored by:
Assemblyman BENJIE E. WIMBERLY
District 35 (Bergen and Passaic)
SYNOPSIS
Establishes certain notice and compensation requirements for residential tenant displaced for purpose of renovation.
CURRENT VERSION OF TEXT
As introduced.
An Act concerning residential tenant displacement, and supplementing P.L.1974, c.49 (C.2A:18-61.1 et seq.) and P.L.1975, c.310 (C.46:8-43 et seq.).
Be It Enacted by the Senate and General Assembly of the State of New Jersey:
1. a. A landlord shall compensate a displaced residential tenant in an amount equal to the reasonable rental cost of a moving truck or van, and 12 times the monthly rent paid by the residential tenant, if:
(1) the landlord has made a written demand and given written notice pursuant to subsection f. of section 3 of P.L.1974, c.49 (C.2A:18-61.2) for delivery of possession of the premises pursuant to subsection l. of section 2 of P.L.1974, c.49 (C.2A:18-61.1) and the landlord has represented to the tenant that possession is sought for the purposes of renovating or engaging in construction work on the unit;
(2) the landlord has filed a complaint in the Superior Court of New Jersey, Law Division, Special Civil Part pursuant to subsection 1. of section 2 of P.L.1974, c.49 (C.2A:18-61.1) and the landlord has represented to the tenant that possession is sought for the purposes of renovating or engaging in construction work on the unit; or
(3) the residential tenant is displaced because the owner sought to personally occupy the unit, or has contracted to sell the unit to a buyer who seeks to personally occupy the unit pursuant to subsection 1. of section 2 of P.L.1974, c.49 (C.2A:18-61.1); and either:
(a) the owner or buyer has represented to the tenant that possession was sought for the purposes of renovating or engaging in construction work on the unit; or
(b) the owner, buyer, or the agents of the owner or buyer intended to or have renovated or engaged in renovation or construction work on the unit within the first six months following the tenant's displacement.
b. Payment by the owner required pursuant to subsection a. of this section shall be due five days prior to the tenant vacating the unit pursuant to paragraphs (1) and (2) of subsection a. of this section, or within five days of the tenant's displacement pursuant to paragraph (3) of subsection a. of this section. If payment is not made within the time periods proscribed in this subsection, interest shall accrue and be due to the displaced residential tenant on the unpaid balance at the rate of 18 percent per annum until the amount due and all interest accumulated thereon shall be paid in full.
c. If payment pursuant to subsection a. of this section, for which an owner is liable is not paid in full within 30 days of the tenant's vacating the unit or displacement, the unpaid balance thereof and all interest accruing thereon and, in addition thereto, an amount equal to 12 times the monthly rental paid by the displaced tenant shall be a lien upon the parcel of property on which the dwelling of the displaced residential tenant was located, for the benefit of that tenant. To perfect the lien, a statement showing the amount and due date of the unpaid balance and identifying the parcel shall be recorded with the county clerk or registrar of deeds and mortgages of the county in which the affected property is located, and upon recording, the lien shall have the priority of a mortgage lien. Identification of the parcel by reference to its designation on the tax map of the municipality shall be sufficient for purposes of recording. Whenever the unpaid balance and all interest accrued thereon has been fully paid, the displaced residential tenant shall promptly withdraw or cancel the statement, in writing, at the place of recording.
2. a. If a landlord requests, or otherwise attempts to persuade a residential tenant to vacate the tenant's dwelling unit, so that the landlord may renovate or engage in construction work on the unit or represents that the landlord intends to renovate or engage in construction work on the unit, the landlord shall provide the tenant with a written notice, at least one month prior to the requested departure date, provided that where there is a written lease in effect, the departure date shall not be instituted until the written lease expires. The written notice shall state the circumstances that permit a landlord to evict a residential tenant for purposes of renovation, and stating that the landlord is not permitted to evict the tenant unless those circumstances are present.
b. The commissioner shall, on or before the first day of the fourth month next following enactment, prepare and make available on the department's Internet website a model statement for use by a landlord pursuant to subsection a. of this section.
c. As used in this section, "landlord" means a person who rents or leases or offers to rent or lease, for a term of at least one month, one or more dwelling units, except for a landlord of an owner-occupied premises.
3. This act shall take effect on the first day of the fourth month next following enactment.
STATEMENT
This bill establishes certain notice and compensation requirements for residential tenants displaced for the purpose of renovation.
The bill would require a landlord to compensate a displaced residential tenant for the reasonable rental cost of a moving truck or van, and the value of 12 months' rent, if:
(1) the landlord has given a written notice to quit to the tenant or filed an eviction action against the tenant, alleging that the owner or a buyer seeks to personally occupy the unit; and represented to the tenant that possession is sought for renovation or construction purposes; or
(2) the residential tenant has been displaced for the purpose of personal occupancy by the owner or a buyer, and the owner or buyer has represented to the tenant that possession was sought for purposes of renovating or engaging in construction work on the unit; or such renovation or construction work has been performed within six months following the tenant's displacement.
If the tenant has not vacated the unit as described in paragraph (1) above, payment by the owner would be due five days prior to the tenant vacating the unit. If the tenant has vacated the unit as described in paragraph (2) above, payment would be due within five days of the tenant's displacement. If payment is not made within these proscribed time periods, interest would accrue and be due to the tenant at an annual interest rate of 18 percent. If the landlord does not provide compensation for displacement in full within 30 days of removal, the unpaid balance and interest would be a lien on the property for the benefit of the tenant. The bill requires the lien to be recorded, as specified in the bill. The lien would have the priority of a mortgage lien.
This bill also requires that if a landlord requests, or otherwise attempts to persuade a residential tenant to vacate the tenant's dwelling unit, so that the landlord may renovate the unit or by representing that the landlord intends renovate or engage in construction work on the unit, the landlord would be required to provide the tenant with a written notice. The landlord would be required to give the notice to the tenant at least one month prior to the requested departure date, provided that where there is a written lease in effect, the departure date shall not be instituted until the written lease expires. The written notice is required to state the circumstances that permit a landlord to evict a residential tenant for purposes of renovation, and stating that the landlord is not permitted to evict the tenant unless those circumstances are present. The bill requires the Commissioner of Community Affairs to, on or before the first day of the fourth month next following enactment, prepare and make available, on the Internet website of the Department of Community Affairs, a model statement for the purposes of this requirement.
The Anti-Eviction Act, P.L.1974, c.49 (C.2A:18-61.1 et seq.) does not permit a landlord to evict a residential tenant so that the landlord may renovate the housing unit, except in particular circumstances. However, it has become common for landlords to notify a tenant that the tenant needs to move out of their home because the landlord intends to renovate. Frequently, if the landlord initiates an eviction action for stated renovation purposes, the cause of action for the eviction provided by the landlord is that the landlord intends to personally occupy the unit, or has contracted to sell to a buyer who seeks to personally occupy the unit. This bill intends to protect faultless residential tenants from being persuaded to vacate a residential unit without understanding their rights, and compensate tenants who are evicted for causes associated with a stated intent to renovate.
