SENATE ENVIRONMENT AND ENERGY COMMITTEE

STATEMENT TO

SENATE, No. 3110

with committee amendments

STATE OF NEW JERSEY

DATED:  OCTOBER 6, 2022

      The Senate Environment and Energy Committee favorably reports Senate Bill No. 3110, with committee amendments.

      This bill, as amended, requires sellers of real property and landlords to make certain notifications regarding flooding.

      Specifically, the bill requires landlords to notify their tenants if the leased premises has been determined to be located in a flood zone or area or has experienced any flood damage, water seepage, or pooled water due to a natural flood event, such as heavy rainfall, coastal storm surge, tidal inundation, or river overflow.  The bill requires the Department of Community Affairs (DCA) to promulgate a form to be used by landlords to provide prospective tenants with information concerning flood information and risks.  The bill also requires landlords to notify tenants of the availability of insurance available for renters through the National Flood Insurance Program.

      In addition, the bill requires sellers of real property located in this State to disclose, in writing, any actual knowledge of the seller of the property regarding flood risks that are present on the property.  The bill requires the Department of Community Affairs add to existing disclosure requirements and forms used by sellers of real property to provide purchasers of property with information concerning flood information and risks.

      The bill requires the DCA, in consultation with the Department of Environmental Protection (DEP), to prepare a notification, to be distributed to purchasers of real property and in the State, that Statewide flood risks are increasing and that a purchaser or tenant may review these risks by going to a website that the DEP is required by the bill to create and update with current and scientifically-supported information.  All notifications required pursuant to the bill would be required to be provided to the purchaser or tenant in writing before the purchaser or tenant becomes obligated under any contract for the purchase or lease of the property.

      The committee amendments to the bill:

      (1)  clarify that the DCA is required to adopt rules and regulations to implement the bill's provisions within 90 days after its enactment;

      (2)  clarify that the bill's notification requirements for landlords and sellers of real property would go into effect 90 days after the DCA adopts rules and regulations to implement the bill; and

      (3)  correct typographical errors and make clarifying changes.