New Jersey Senate Bill S1091

New Jersey 2022-2023 Regular Session

• Introduced: 1/31/22
• Refer: 1/31/22

Caption

Authorizes Governor to restrict rent increases on certain commercial tenants during emergency circumstances; enhances similar existing authority over rent increases on residential tenants.

Impact

The implementation of S1091 would extend existing protections beyond residential tenants to include small retail businesses that employ fewer than 20 individuals. These protections enable the Governor to issue a 'Notice of Rent Protection Emergency' (NRPE) when necessary, thereby prohibiting significant rent increases during times of crisis. This provision is intended to alleviate the financial pressures faced by tenants in emergency situations, thereby preventing potential cases of homelessness or business closures.

Summary

Senate Bill S1091 proposes amendments to existing legislation concerning tenant protections during emergency situations in New Jersey. This bill specifically grants the Governor greater powers to impose restrictions on rent increases for both commercial and residential tenants when a state of emergency or public health emergency has been declared. The bill aims to address potential increases in rental costs that may occur in the wake of an emergency, ensuring affordability and stability for tenants and small businesses, particularly those directly providing services to consumers.

Contention

While S1091 is generally viewed as a supportive measure for tenants, there are concerns regarding its implications for landlords and their ability to maintain a reasonable return on investment. Landlords may feel constrained by the limitations placed on rent increases, which might lead them to seek exceptions through applications to the Division of Consumer Affairs. The balance between tenant protections and landlord interests will likely continue to be a point of contention as the bill progresses through the legislative process.