Turner Bill to Establish Standards for Expiration of Rental Housing Affordability Controls Advances

Trenton – In an effort to assist tenants in moderate and low-income rental housing, the Senate Community and Urban Affairs Committee today passed legislation sponsored by Senator Shirley K. Turner that would establish standards for the expiration of rental housing affordability controls.

“With so many New Jerseyans struggling financially, rent increases have become a prominent issue for tenants. This legislation would put standards in place to prevent unfair displacement of moderate and low-income tenants,” said Senator Turner (D-Mercer). “The bill would prohibit a landlord from increasing rent in a manner that conflicts with affordability controls until the lease is up for renewal or the unit is vacant.”

When the affordability controls of a restricted rental unit expire, the bill would prohibit a landlord from increasing rent in a manner that conflicts with affordability controls until the unit is vacant, if the tenant’s gross annual income is less than 80 percent of the regional median income. If the occupant earns a gross annual income higher than 80 percent of the regional median income, then the landlord could lease the unit at fair market rent beginning on the next scheduled lease renewal.

The bill, S-422, would require a landlord to clearly display information that states the date the affordability controls expire on the lease or lease renewal agreement of a restricted rental unit. If the landlord fails to comply with the statement required by the expiration of affordability controls, the lease, or renewal agreement, they would be barred from increasing rent in a manner that conflicts with the controls until the next scheduled lease renewal.

Under the bill, the landlord would be required to provide a written notice to the tenant no less than 120 days before the affordability controls expire.

The bill, which would take effect immediately, was released from committee by a vote of 5-0.