Turner, Stack 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 today passed legislation sponsored by Senators Shirley K. Turner and Brian Stack 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 the unfair displacement of moderate and low-income tenants,” said Senator Turner (D-Mercer/Hunterdon). “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. Legislation like this is incredibly important to protect tenants from unexpected rent increases.”

“Similar to people in every state across the country, many of our residents have been struggling to afford essentials, such as housing and groceries, since the beginning of the pandemic, and of course, well before this year started,” said Senator Stack (D-Hudson). “I have a very close relationship with my constituents, and I have seen first-hand how people have been suffering beyond the pandemic. We need to do more to protect our residents and this legislation would help by preventing landlords from unexpectedly raising the rent on low-income tenants.”

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 more than 180 days and no less than 90 days before the affordability controls expire.

The bill, which would take effect immediately, was released from the Senate by a vote of 39-1.