ASSEMBLY HOUSING COMMITTEE
STATEMENT TO
ASSEMBLY, No. 4470
with committee amendments
STATE OF NEW JERSEY
DATED: JUNE 13, 2024
The Assembly Housing Committee adopts committee amendments
to Assembly Bill No. 4470.
As amended, this bill alters rent receivership statute to provide that
court shall appoint receiver under certain conditions, and establishes
mandatory appointment requirement.
Under current law, a tenant or a housing inspector may file a
complaint in court seeking repairs of the property. The statute says
that, based on evidence provided by the plaintiff, a building “shall be
eligible for” rent receivership upon a court determination that the
building is in violation of housing codes so as to endanger health or
safety or the building is the site of a clear and convincing pattern of
recurrent code violations. However, other statutory language states
that the court “shall” order a rent receivership in the same
circumstances.
Under a receivership, the tenants deposit their rent monies with a
court-appointed administrator. These monies are used to make the
repairs under the supervision of the administrator.
This bill would amend current law to provide that the court “shall
appoint a receiver” under these conditions, with limited exception.
The bill also deletes the language concerning “evidence provided by
the plaintiff.” The intent of this deletion is to clarify that the court is
not restricted to considering only the plaintiff’s evidence when
determining whether to appoint a receiver.
The bill addresses an ambiguity in existing law, and relates to a
recommendation by the New Jersey Law Revision Commission, “Final
Report Concerning the Interpretation of N.J.S.2A:42-117 of New
Jersey’s Receivership Act,” issued October 20, 2022.
COMMITTEE AMENDMENTS :
These amendments make the following changes:
Require court to appoint a receiver upon a determination that a
building is in violation of housing codes so as to endanger
health or safety or the building is the site of a clear and
convincing pattern of recurrent code violations;
If the court cannot identify a receiver, require the appointment
of an alternative qualified party; and 2
Clarify exception to receivership requirement in certain
circumstances when owner demonstrates that the conditions
leading to complaints will be abated.