New Jersey Senate Bill S1502

New Jersey 2024-2025 Regular Session

• Introduced: 1/9/24
• Refer: 1/9/24

Caption

Establishes standards for expiration of rental housing affordability controls.

Impact

The legislation requires landlords to conduct income certifications for tenants living in restricted units prior to affordability controls expiring. This certification must occur no more than 180 days and no less than 90 days before the expiration of these controls. Furthermore, should the tenant’s income exceed the threshold, the property may be leased at fair market rent starting with the next scheduled lease renewal, or after a specified period. The bill thus introduces a structured administrative approach, allowing for a clearer process regarding tenant income evaluations over time.

Summary

Senate Bill S1502 aims to establish standards regarding the expiration of affordability controls on rental housing in New Jersey. The bill stipulates that when the affordability controls of a restricted rental unit expire, if the household continues to earn less than or equal to 80% of the regional median income, the landlord is prohibited from raising the rent until the household vacates the unit. This provision is designed to protect lower-income families from sudden rent hikes after affordability controls come to an end.

Contention

One notable aspect of contention surrounding S1502 may arise from the balance between tenant protections and landlord rights. While the intent is to ensure affordable housing for those within specific income brackets, landlords may argue this limits their ability to adjust rents based on prevailing market conditions once their properties are no longer subject to affordability controls. Additionally, administrating the income certification process may add complexity and potential delays for landlords, raising concerns about the feasibility of compliance and the implications for housing availability.