Expands liability of certain individuals associated with limited liability companies and other commercial entities, when acting as residential landlord.
Impact
If enacted, this legislation would modify existing liability laws under the 'Revised Uniform Limited Liability Company Act' in New Jersey. By imposing joint and several liabilities, the bill intends to hold individuals accountable for risky property management practices that lead to repeated code violations. This could incentivize better management among commercial landlords and improve housing conditions for tenants, potentially reducing the number of code violations.
Summary
Assembly Bill A3856 aims to expand the liability of individuals connected with limited liability companies (LLCs) and other commercial entities when they act as residential landlords. The bill allows courts to hold LLC members, managers of LLCs, and corporate directors and officers jointly and severally liable for housing, building, or health code fines if certain conditions are met. Specifically, there must be at least three code violations on the property, and these must remain unpaid for over a year.
Contention
However, the bill has sparked debate concerning its potential impact on small landlords and property management. Critics argue that increasing liability may discourage individuals from entering the rental business or investing in residential properties, particularly smaller landlords who may lack the resources to manage multiple properties effectively. There are concerns that the bill could inadvertently lead to higher rental prices as landlords adjust to cover increased risks associated with their liabilities.
Same As
Expands liability of certain individuals associated with limited liability companies and other commercial entities, when acting as residential landlord.
Expands liability of certain individuals associated with limited liability companies and other commercial entities, when acting as residential landlord.
Expands liability of certain individuals associated with limited liability companies and other commercial entities, when acting as residential landlord.
Expands liability of certain individuals associated with limited liability companies and other commercial entities, when acting as residential landlord.
Relating to partnerships, limited liability companies, and other domestic and foreign entities and to series of limited liability companies and foreign entities.
Relating to partnerships, limited liability companies, and other domestic and foreign entities and to series of limited liability companies and foreign entities.
Expands liability of certain individuals associated with limited liability companies and other commercial entities, when acting as residential landlord.
Expands liability of certain individuals associated with limited liability companies and other commercial entities, when acting as residential landlord.
Expands liability of certain individuals associated with limited liability companies and other commercial entities, when acting as residential landlord.
The "Safeguarding Livable Units through Municipal Landlord Oversight and Regulation by DCA" or "SLUMLORD Act"; strengthens habitability protections for residential tenants; appropriates $5 million.