New Jersey Assembly Bill A2132

New Jersey 2022-2023 Regular Session

• Introduced: 2/7/22
• Refer: 2/7/22

Caption

Permits municipalities to adopt ordinances to enforce certain landlord code violations as tax liens.

Impact

The legislation seeks to provide municipalities with robust tools to deal with landlords who might neglect property maintenance or violate housing codes. This could improve residential conditions by ensuring compliance with housing regulations. Additionally, by turning unpaid charges into liens, municipalities could secure revenue that may otherwise be lost if property violations go unresolved. However, this could also burden landlords who may genuinely struggle to meet financial obligations, as tax liens can escalate quickly and disrupt their business operations. The new provisions particularly aim to strengthen the compliance mechanism without overreaching the jurisdiction of local governments.

Summary

Assembly Bill A2132 permits municipalities within New Jersey to enact ordinances that allow certain landlord code violations to be enforced as tax liens. This means that if a landlord fails to pay fines or penalties related to housing, building, or health codes, those charges could eventually become a lien on their property. The bill stipulates that these liens must be enforceable in the same way as real property tax liens and lays out a framework for notification of landlords prior to the conversion of said charges to liens. Specifically, landlords must be notified at least 90 days before any charge is filed as a municipal lien, allowing them an opportunity to resolve the charge or request a hearing.

Contention

Some areas of contention surrounding A2132 may revolve around the implications for landlords, especially those operating as limited liability companies (LLCs). The bill modifies the existing requirement for landlord registration and allows for greater protection of LLC members from personal liability regarding code violations unless they fulfill specific conditions. Critics could argue that this might create loopholes, allowing LLC members to avoid accountability while still profiting from their properties. Additionally, concerns around adequate communication and enforcement of the new lien provisions may also arise, particularly regarding whether tenants understand their rights in these circumstances.