Sponsored by:
Senator BRITNEE N. TIMBERLAKE
District 34 (Essex)
SYNOPSIS
Requires right of first refusal for displaced residential tenants in certain circumstances.
CURRENT VERSION OF TEXT
As introduced.
An Act requiring the right of first refusal for displaced residential tenants in certain circumstances and supplementing Title 2A of the New Jersey Statutes
Be It Enacted by the Senate and General Assembly of the State of New Jersey:
1. a. For the purposes of this section:
"Displaced residential tenant" means a residential tenant with a current lease in effect at the time that a unit is required to be vacated.
b. A private developer that demolishes a multiple dwelling for the purpose of a redevelopment project shall provide each displaced residential tenant of the apartment building with a right of first refusal to lease a comparable dwelling unit within the newly redeveloped apartment building at a rental price no more than 10 percent higher than the rental price charged to the displaced residential tenant pursuant to the lease that was effective at the time of the displacement. The right of first refusal shall apply before any dwelling unit is offered for lease to the public.
c. A private developer shall provide written notice of anticipated completion of the newly constructed building to each displaced residential tenant not fewer than 90 days before the date of anticipated completion of construction.
d. A private developer shall provide each displaced residential tenant with written notice, either by certified mail or in another format agreed to by the displaced residential tenant, of their right to first refusal and an offer for the lease of a unit pursuant to subsection b. of this section at least 60 days prior to completion of the newly constructed dwelling unit. A private developer shall allow a displaced residential tenant at least 30 days after receipt of a written lease offer to accept or decline the lease offer. If a displaced residential tenant fails to accept a lease offer or respond to the written notice provided pursuant to this subsection within the allowed period, the private developer may consider the failure to accept or respond to constitute a decision to decline the offer.
e. If a displaced residential tenant accepts a lease offer pursuant to subsection b. of this section, the lease shall contain a provision that in the event of a lease renewal by the displaced residential tenant, the price of rent shall not be increased by more than the rent control ordinance adopted within the municipality in which the property is located. In the event that the municipality in which the property is located has not adopted a rent control ordinance, the price of rent shall not be increased in a subsequent lease renewal by more than the rent control ordinance of the nearest municipality that has adopted a rent control ordinance. If the municipality in which the property is located in adopts a rent control ordinance at any time, the following displaced residential tenant’s lease renewal shall conform to the municipal rent control ordinance.
f. A displaced residential tenant may bring a summary action in the Superior Court, Law Division, for equitable relief or monetary damages for a violation of any provision of P.L. , c. (C. ) (pending before the Legislature as this bill). A private developer found to be in violation of the provisions of P.L. , c. (C. ) (pending before the Legislature as this bill) shall additionally be liable to a civil penalty of up to $1,000 for each violation pursuant to "Penalty Enforcement Law of 1999," P.L.1999, c.274 (C.2A:58-10 et seq.). Any penalty monies shall be deposited into the treasury in the municipality of which the property is sited.
2. This act shall take effect immediately.
STATEMENT
This bill requires a private developer that demolishes an apartment building to provide each displaced residential tenant with a right of first refusal to lease a comparable dwelling unit within the newly redeveloped apartment building at a rental price no more than 10 percent greater than the rent charged to the displaced residential tenant pursuant to the lease that was effective at the time of the displacement.
The bill requires a private developer to notify a displaced residential tenant of the anticipated completion of the newly constructed building to each displaced residential tenant not fewer than 90 days before anticipated completion of construction. The bill also requires that a private developer provide each displaced residential tenant with the opportunity to lease a comparable dwelling unit at least 60 days prior to completion of the newly constructed dwelling unit. A displaced residential tenant then has 30 days from receipt of the written lease offer to accept or decline the lease offer.
The bill also provides that if a displaced residential tenant accepts a lease offer pursuant to the provisions of the bill, the lease shall contain a provision that in the event of a lease renewal by the displaced residential tenant, the price of rent shall not be increased by more than the rent control ordinance adopted within the municipality in which the property is located. In the event that the municipality in which the property is located has not adopted a rent control ordinance, the price of rent shall not be increased in a subsequent lease renewal by more than the rent control ordinance of the nearest municipality that has adopted a rent control ordinance. If the municipality in which the property is located in adopts a rent control ordinance at any time, the following displaced residential tenant’s lease renewal shall conform to the municipal rent control ordinance.
The bill provides that a displaced residential tenant can seek equitable relief or monetary damages in a summary action in the Superior Court, Law Division, for a violation of the provisions of the bill.