A5924

An Act concerning protection of tenants displaced due to fire and amending P.L.1971, c.362 and P.L.1981, c.491.

Be It Enacted by the Senate and General Assembly of the State of New Jersey:

1. Section 3 of P.L.1971, c.362 (C.20:4-3) is amended to read as follows:

As used in this act the term:

a. "Taking agency" means the entity, public or private, including the State of New Jersey, which is condemning private property for a public purpose under the power of eminent domain.

b. "Person" means any individual, partnership, corporation, or association.

c. "Displaced person" means any person who, on or after the effective date of this act, moves from real property, or moves [his] their personal property from real property, as a result of the acquisition of such real property, in whole or in part, or as the result of the written order of the acquiring agency to vacate real property, for a program or project undertaken by a taking agency; and:

(1) solely for the purposes of sections 4 a. and b. and section 7 of this act, as a result of the acquisition of or as the result of the written order of the acquiring agency to vacate other real property, on which such person conducts a business or farm operation, for such program or project; and

(2) as a result of fire, damage from which, in the judgement of the housing inspector or other official charged with equivalent responsibility, renders their rented dwelling uninhabitable.

d. "Business" means any lawful activity, excepting a farm operation, conducted primarily:

(1) for the purchase, sale, lease and rental of personal and real property, and for the manufacture, processing, or marketing of products, commodities, or any other personal property;

(2) for the sale of services to the public;

(3) by a nonprofit organization; or

(4) solely for the purposes of section 4 a. of this act for assisting in the purchase, sale, resale, manufacture, processing, or marketing of products, commodities, personal property, or services by the erection and maintenance of an outdoor advertising display or displays, whether or not such display or displays are located on the premises on which any of the above activities are conducted.

e. "Farm operation" means any activity conducted solely or primarily for the production of one or more agricultural products or commodities, including timber, for sale or home use, and customarily producing such products or commodities in sufficient quantity to be capable of contributing materially to the operator's support.

f. [The term "commissioner" shall mean] "Commissioner" means the Commissioner of [the Department of] Community Affairs.

(cf: P.L.1971, c.362, s.3)

2. Section 1 of P.L.1981, c.491 (C.20:4-3.1) is amended to read as follows:

[A municipality may provide by resolution that] a. Where not mandated by municipal resolution, and where a tenant [residing in a structure of two dwelling units or more,] is displaced from [his] their dwelling by fire [or other emergency], and the damage resulting from the fire [or other emergency] in the judgment of the housing inspector or other official charged with equivalent responsibility is such as to render the dwelling uninhabitable, the tenant shall be deemed a displaced person under the "Relocation Assistance Act," P.L.1971, c.362 (C.20:4-1 et seq.), and shall be eligible for relocation assistance as afforded persons displaced as a result of code enforcement activities. [State appropriations of relocation assistance shall not be used for this purpose unless specifically permitted by language in the annual appropriations act.]

b. A municipality may provide by resolution that where a tenant residing in a structure of two dwelling units or more, is displaced from their dwelling by other emergency, and the damage resulting from the emergency in the judgment of the housing inspector or other official charged with equivalent responsibility is such as to render the dwelling uninhabitable, the tenant shall be deemed a displaced person under the "Relocation Assistance Act," P.L.1971, c.362 (C.20:4-1 et seq.), and shall be eligible for relocation assistance as afforded persons displaced as a result of code enforcement activities. State appropriations of relocation assistance shall not be used for this purpose unless specifically permitted by language in the annual appropriations act.

c. A tenant who is displaced from their dwelling by fire shall have a right of first refusal to return again to such dwelling unit as a tenant upon determination by the housing inspector, or other official charged with equivalent responsibility, that repairs on the dwelling unit are complete and that the dwelling unit was restored with amenities equal to or better than before the fire took place. A tenant unlawfully denied such right of first refusal to return to such a dwelling unit shall have a cause of action in any court of competent jurisdiction for compensatory damages or declaratory and injunctive relief as the court deems necessary in the interests of justice, provided that such compensatory relief shall not exceed the annualized rental charges applicable to the dwelling unit immediately prior to the fire.

d. A tenant who is displaced from their dwelling by fire may apply to the Department of Community Affairs to establish reduced rent for the vacated apartment at one dollar per month or another nominal amount. If the department establishes such nominal rent, the tenant shall pay such rent to the landlord, without interruption, to establish and maintain their right of first refusal for the period that the dwelling unit is uninhabitable.

(cf: P.L.1981, c.491, s.1)

3. This act shall take effect immediately.

STATEMENT

This bill amends the Relocation Assistance Act, P.L.1971, c.362 (C.20:4-1 et seq.), to authorize and provide protections for tenants displaced by fire. Under current law, a municipality is authorized to provide by resolution that if a tenant residing in a structure of two dwelling units or more is displaced from their dwelling by fire or other emergency, the tenant shall be deemed a displaced person under the "Relocation Assistance Act" and is to be eligible for relocation assistance as afforded persons displaced as a result of code enforcement activities. The bill establishes that, where not required by municipal resolution, a tenant displaced by fire is to be deemed a displaced person under the Relocation Assistance Act.

This bill provides that a tenant displaced by fire is also entitled to the right of first refusal to return to the dwelling as a tenant when repairs are complete and allows a tenant to apply to the Department of Community Affairs to establish a reduced rent on the damaged dwelling for the period that the dwelling unit is uninhabitable in order to establish and maintain their right of first refusal. The bill also establishes a cause of action for a tenant denied a right of first refusal, as described in the bill.

The bill maintains an existing provision of law that authorizes a municipality to pass a resolution deeming a tenant displaced due to an emergency other than fire as a displaced person under the Relocation Assistance Act, but adds to the definition of "displaced person" a person who moves from real property "as a result of fire, damage from which, in the judgement of the housing inspector or other official charged with equivalent responsibility, renders their rented dwelling uninhabitable."