ASSEMBLY HOUSING COMMITTEE

STATEMENT TO

ASSEMBLY, No. 3507

STATE OF NEW JERSEY

DATED:  MARCH 9, 2026

      The Assembly Housing Committee reports favorably Assembly Bill No. 3507.

      As reported, 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 comparable rental properties in the geographic area, including the federal Department of Housing and Urban Development Fair Market Rents and Small Area Market Rents;

• 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 specifies that no one factor enumerated in the bill and considered by a court is to be the sole factor in the court’s decision concerning whether a rent increase is unconscionable, and that the factors enumerated in the bill are not to be deemed an exhaustive list.  The bill permits a court to consider other factors which, on a case-by-case basis, the court determines to be relevant in determining whether an increase in rent is unconscionable.

      This bill was prefiled for introduction in the 2026-2027 session pending technical review.  As reported, the bill includes the changes required by technical review, which has been performed.