A4296

An Act requiring notification of availability of legal resources to tenants of certain multiple dwellings and amending and supplementing P.L.1975, c.310.

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

1. Section 2 of P.L.1975, c.310 (C.46:8-44) is amended to read as follows:

2. As used in [this act] P.L.1975, c.310 (C.46:8-43 et seq.):

a. "Landlord" means any person who rents or leases or offers to rent or lease, for a term of at least one month, dwelling units, except dwelling units in rental premises containing not more than two such units, or in owner-occupied premises of not more than three dwelling units, or in hotels, motels or other guest houses serving transient or seasonal guests.

b. "Department" means the Department of Community Affairs.

c. "Commissioner" means the Commissioner of Community Affairs.

d. "Electronic funds transfer" means a transfer of funds, other than a transaction originated by check, draft, or similar paper instrument, that is initiated through an electronic terminal, telephone, computer, or magnetic tape for the purpose of ordering, instructing, or authorizing a financial institution to debit or credit a consumer's account, including, but not limited to, through the use of an automated clearinghouse (ACH) system.

e. "State component" means the department’s component of the tenant legal resources notice, required pursuant to subsection c. of section 2 of P.L. , c. (C. ) (pending before the Legislature as this bill).

f. "Tenant legal resources notice" or "notice" means the legal notice required pursuant to subsection d. of section 2 of P.L. , c. (C. ) (pending before the Legislature as this bill).

(cf: P.L.2019, c.300, s.1)[GA1] [GA2]

2. (New section) a. Every residential landlord who rents or leases, or offers to rent or lease, a dwelling unit not exempted pursuant to subsection e. of this section shall distribute to the tenant of each subject unit one copy of the tenant legal resources notice of the municipality in which the dwelling unit is located on or before the first day of the second month next following the date the municipality publishes the notice on the municipality’s Internet website, and shall thereafter provide a copy of the current notice to each tenant:

(1) at or prior to the time the tenant assumes occupancy of the dwelling;

(2) upon renewal of the lease term, regardless of whether the lease term is month-to-month or a greater time period; and

(3) with a summons and complaint for any action filed against a tenant, the basis of which arose from any legal obligation or responsibility contained in the lease agreement or pursuant to the landlord-tenant relationship.

b. A residential landlord shall post, on or before the first day of the second month next following the date the municipality in which a dwelling unit is located publishes the tenant legal resources notice on the municipality’s Internet website, a copy of the notice in a conspicuous location in or near the entryway of each structure that contains residential dwelling units that are leased or offered for lease by the landlord.

c. The department shall, as soon as practicable, and not later than the first day of the third month next following the effective date of P.L. , c. (C. ) (pending before the Legislature as this bill), and annually thereafter, after public hearing, prepare and make available at no cost to the public, to the extent that funding has been made available to the department for free distribution, a State component to be included within the tenant legal services notice pursuant to subsection d. of this section, in a form and size suitable for posting and distribution pursuant to the provisions of P.L. , c. (C. ) (pending before the Legislature as this bill), which shall be no longer than two pages of 12-point font, and shall contain the legal services available to a residential tenant, including, at the discretion of the department, private legal services provided by attorneys who represent residential tenants in this State for tenants who do not qualify for free legal services, and legal services provided by nonprofit organizations in this State. The State component shall provide the name or business name, address, and contact information available for the tenant to access legal services. The State component shall also contain:

(1) common claims and defenses a tenant may assert against the tenant’s residential landlord;

(2) the implications of asserting the common claims or defenses with respect to an eviction and the tenant’s ability to lease residential units in this State in the future; and

(3) in capitalized, bold-faced font, that a residential landlord’s failure to distribute the tenant legal services notice, required pursuant to subsection d. of this section, in accordance with the requirements of subsections a. and b. of this section, shall subject a landlord to a $1,000 penalty pursuant to section 5 of P.L.1975, c.310 (C.46:8-47), pursuant to a complaint by the Attorney General or the residential tenant.

d. (1) Each municipality shall, on or before the first day of the third month next following the date the department publishes the State component on the department’s Internet website, prepare and publish on the municipality’s Internet website a tenant legal services notice, which shall include: (a) the State component, published pursuant to subsection c. of this section; (b) the legal services available to a residential tenant, including private legal services provided by attorneys who represent residential tenants in this State for tenants who do not qualify for free legal services, included at the discretion of the municipality, and legal services provided by nonprofit organizations in the municipality; (c) the name or business name, address, and contact information available for the tenant to access the legal services in the municipality; (d) a list of resources available to a tenant pursuant to municipal ordinance, including whether the municipality has a rent control ordinance and how to petition for review of the landlord’s rent increase, and whether the municipality has established a right-to-counsel program entitling residential tenants facing eviction to legal counsel; and (e) any other legal resources available to a tenant in the municipality, including the name and contact information for public and private organizations that provide emergency and other rental assistance to residential tenants, and resource navigation services, if available. The tenant legal services notice, not including the State component, shall be no longer than three pages of 12-point font.

(2) A municipality may by ordinance establish a tenant legal resources notice surcharge to be charged to a landlord for each dwelling unit in the municipality, and in an amount necessary to pay the costs of the municipality for administration of this section.

e. A landlord who violates this section shall be subject to the penalty established pursuant to section 5 of P.L.1975, c.310 (C.46:8-47). This section shall not apply to:

(1) seasonal rental units; or

(2) units in a building with five or fewer units.

3. Section 5 of P.L.1975, c.310 (C.46:8-47) is amended to read:

5. Any landlord who violates any provision of [this act] P.L.1975, c.310 (C.46:8-43 et seq.), contrary to the legal rights of tenants, shall be liable to a penalty of [not more than $100.00] $1,000 for each offense. [Such] The penalty shall be collected and enforced by summary proceedings pursuant to ["the penalty enforcement law" (N.J.S.2A:58-1 et seq.)] the "Penalty Enforcement Law of 1999," P.L.1999, c.274 (C.2A:58-10 et seq.). The tenant shall be permitted to recover the penalty, reasonable attorney’s fees, court costs, expenses for expert witnesses, and other related fees and expenses incurred in proving a violation of P.L.1975, c.310 (C.46:8-43 et seq.). The Superior Court, Law Division, Special Civil Part in the county in which the rental premises are located shall have jurisdiction over such proceedings. Process shall be in the nature of a summons or warrant, and shall issue upon the complaint of the commissioner, the Attorney General, or any other person.

(cf: P.L.1991, c.91, s.460)[GA3] [GA4]

4. This act shall take effect on the first day of the third month next following the date of enactment, except that subsections a. and b. of section 2 of P.L. , c. (C. ) (pending before the Legislature as this bill) shall take effect on the first day of the eighth month next following the date of enactment of P.L. , c. (C. ) (pending before the Legislature as this bill).

STATEMENT

This bill requires a landlord to provide certain tenants with notification of their legal rights through a tenant legal resources notice (notice). A landlord who fails to provide tenants with the tenant legal resources notice would be in violation of the "Truth in Renting Act." The notification requirement would not apply to seasonal rental units or units in a building with five or fewer units.

The bill directs the Department of Community Affairs to develop a State component summarizing State resources and legal information available to tenants, including:

(1) the name or business name, address, and all contact information available for the tenant to access the legal services;

(2) common claims and defenses a tenant may assert against the tenant’s residential landlord;

(3) the implications of asserting the common claims or defenses with respect to an eviction and the tenant’s ability to lease residential units in this State in the future; and

(4) notice that a residential landlord’s failure to distribute the notice, required by the bill, shall subject a landlord to a $1,000 penalty.

The bill additionally directs each municipality to publish the notice for that municipality including:

(1) the State component;

(2) the legal services available to a residential tenant, including private legal services provided by attorneys who represent residential tenants in the State for tenants who do not qualify for free legal services, included at the discretion of the municipality, and legal services provided by nonprofit organizations in the municipality;

(3) the name or business name, address, and all contact information available for the tenant to access the legal services in the municipality;

(4) a list of resources available to a tenant pursuant to local law, including whether the municipality has a rent control ordinance or right-to-counsel program; and

(5) any other legal resources available to a tenant in the municipality, including the name and contact information for all public and private organizations that provide emergency and other rental assistance to residential tenants, and resource navigation services, if available.

The bill further allows a municipality to establish a tenant legal resources notice surcharge to be charged to a landlord for each dwelling unit in the municipality, and in an amount necessary to pay the costs of the municipality under the bill.

The bill additionally increases the penalty for violation of the "Truth in Renting Act" from $100 to $1,000 per violation. This increase is reflective of the tenfold increase in price of rent in the time since the penalty was established in 1975. Further, the bill expressly permits a tenant to recover, in addition to the $1,000 penalty, reasonable attorney’s fees, court costs, expenses for expert witnesses, and other related fees and expenses incurred in proving a violation of the bill.

The bill is to take effect on the first day of the third month next following the date of enactment, except that the provisions of section 2 of the bill concerning the obligations of a residential landlord, are to take effect on the first day of the eighth month next following the date of enactment.