Sponsored by:
Assemblyman REGINALD W. ATKINS
District 20 (Union)
Assemblywoman YVONNE LOPEZ
District 19 (Middlesex)
SYNOPSIS
Amends rent receivership statute to provide that court may appoint receiver under certain conditions; removes mandatory appointment requirement.
CURRENT VERSION OF TEXT
As introduced.
An Act concerning certain landlord-tenant actions and amending P.L.2003, c.295.
Be It Enacted by the Senate and General Assembly of the State of New Jersey:
1. Section 4 of P.L.2003, c.295 (C.2A:42-117) is amended to read as follows:
4.a. A summary action or otherwise to appoint a receiver to take charge and manage a building may be brought by a party in interest or qualified entity in the Superior Court in the county in which the building is situated. Any receiver so appointed shall be under the direction and control of the court and shall have full power over the property and may, upon appointment and subject to the provisions of P.L.2003, c.295 (C.2A:42-114 et al.), commence and maintain proceedings for the conservation, protection or disposal of the building, or any part thereof, as the court may deem proper.
b. A building shall be eligible for receivership if it meets one of the following criteria:
[a.] (1) The building is in violation of any State or municipal code to such an extent as to endanger the health and safety of the tenants as of the date of the filing of the complaint with the court, and the violation or violations have persisted, unabated, for at least 90 days preceding the date of the filing of the complaint with the court; or
[b.] (2) The building is the site of a clear and convincing pattern of recurrent code violations, which may be shown by proofs that the building has been cited for such violations at least four separate times within the 12 months preceding the date of the filing of the complaint with the court, or six separate times in the two years prior to the date of the filing of the complaint with the court and the owner has failed to take action as set forth in section 9 of P.L.2003, c.295 (C.2A:42-122).
c. A court, upon determining that the conditions set forth in [subsection a. or] paragraph (1) or (2) of subsection b. of this section exist, [based upon evidence provided by the plaintiff, shall], may appoint a receiver, with such powers as are herein authorized or which, in the court's determination, are necessary to remove or remedy the condition or conditions that are a serious threat to the life, health or safety of the building's tenants or occupants.
(cf: P.L.2003, c.295, s.4)
2. This act shall take effect immediately.
STATEMENT
Under current law, a tenant or a housing inspector can file a complaint in court seeking repairs of the property. The statute says that, based on evidence provided by the plaintiff, the court “shall” order a rent receivership upon determining that the building is in violation of housing codes so as to endanger health or safety or the building is the site of a clear and convincing pattern of recurrent code violations.
Under a receivership, the tenants deposit their rent monies with a court-appointed administrator. These monies are used to make the repairs under the supervision of the administrator.
This bill would amend current law to provide that the court “may” appoint a receiver under these conditions. The bill also deletes the language concerning “evidence provided by the plaintiff.” The intent of this deletion is to clarify that the court is not restricted to considering only the plaintiff’s evidence when determining whether to appoint a receiver.
The bill embodies a recommendation by the New Jersey Law Revision Commission, “Final Report Concerning the Interpretation of N.J.S.2A:42-117 of New Jersey’s Receivership Act,” issued October 20, 2022.