ASSEMBLY HOUSING COMMITTEE

STATEMENT TO

ASSEMBLY, No. 5432

STATE OF NEW JERSEY

DATED:  MARCH 20, 2025

      The Assembly Housing Committee reports favorably Assembly Bill No. 5432.

     This bill codifies the test, provided in State case law, for determining whether a rent increase is unconscionable. 

     To determine whether a rent increase is unconscionable, a court would consider:

· the amount of the proposed rent increase;

· the landlord’s expenses and profitability, including the considerations provided in the bill;

· how the existing and proposed rents compare to rents charged at similar rental properties in the geographic area;

· the relative bargaining position of the parties, including consideration of the availability of rental housing in the geographic area;

· whether the rent increase would shock the conscience of a reasonable person;

· the length of time since the last rent increase by the current owner against the residential tenant, the length of tenancy, and the length of property ownership; and

· the condition of the property, including whether there are claims related to the habitability of the premises and certain outstanding code violations affecting health and safety. 

     The bill also provides that court records concerning an eviction action against a residential tenant where the tenant prevails, are to be excluded from public access, unless the landlord obtains a judgment for possession after a trial.

     The bill specifies that its provisions would not be applicable to rent increases that are subject to and compliant with a local rent control ordinance or approved variance, or subject to regulation by a local, State, or federal affordable housing program. 

     The bill would take effect immediately, except that the provisions of the bill establishing the confidentiality of certain court records related to an eviction, would take effect on the first day of the sixth month following the date of enactment.