ASSEMBLY, No. 611


STATE OF NEW JERSEY


209th LEGISLATURE


PRE-FILED FOR INTRODUCTION IN THE 2000 SESSION


Sponsored by:

Assemblywoman JOAN M. QUIGLEY

District 32 (Bergen and Hudson)

Assemblyman JOHN V. KELLY

District 36 (Bergen, Essex and Passaic)


SYNOPSIS

Permits billing of tenants' organizations to maintain certain utilities to rental premises.


CURRENT VERSION OF TEXT

Introduced Pending Technical Review by Legislative Counsel.


AN ACT concerning landlords and tenants, supplementing Title 2A of

the New Jersey Statutes and amending P.L.1974, c.49.


BE IT ENACTED by the Senate and General Assembly of the State

of New Jersey:


1. (New section) Whenever an electric, gas, water or sewer public

utility has provided written notice to tenants residing in rental premises

of a proposed discontinuance of service and the tenants so notified

have indicated a desire to continue service, but the utility has

determined that it would not be feasible to bill each tenant individually

for the service, the utility shall permit a tenants' organization

representing each tenant of the rental premises to accept billing for the

utility and shall continue providing the service to the premises

provided that payment is received.


2. (New section) Whenever a tenants' organization agrees to

accept billing for a utility service, the tenants comprising the

membership of the organization accepting and paying such billing shall

be permitted to deduct from each of their respective rental payments

to the landlord of the premises an amount corresponding to the

tenant's share of the utility payment.


3. Section 2 of P.L.1974, c.49 (C.2A:18-61.1) is amended to read

as follows:

2. No lessee or tenant or the assigns, under-tenants or legal

representatives of such lessee or tenant may be removed by the

Superior Court from any house, building, mobile home or land in a

mobile home park or tenement leased for residential purposes, other

than (1) owner-occupied premises with not more than two rental units

or a hotel, motel or other guest house or part thereof rented to a

transient guest or seasonal tenant; (2) a dwelling unit which is held in

trust on behalf of a member of the immediate family of the person or

persons establishing the trust, provided that the member of the

immediate family on whose behalf the trust is established permanently

occupies the unit; and (3) a dwelling unit which is permanently

occupied by a member of the immediate family of the owner of that

unit, provided, however, that exception (2) or (3) shall apply only in

cases in which the member of the immediate family has a

developmental disability, except upon establishment of one of the

following grounds as good cause:

a. The person fails to pay rent due and owing under the lease

whether the same be oral or written; provided that, for the purposes


EXPLANATION - Matter enclosed in bold-faced brackets [thus] in the above bill is not

enacted and intended to be omitted in the law.


Matter underlined thus is new matter.


of this section, any portion of rent unpaid by a tenant to a landlord but

utilized by the tenant to continue utility service to the rental premises

after receiving notice from an electric, gas, water or sewer public

utility that such service was in danger of discontinuance based on

nonpayment by the landlord, shall not be deemed to be unpaid rent.

b. The person has continued to be, after written notice to cease, so

disorderly as to destroy the peace and quiet of the occupants or other

tenants living in said house or neighborhood.

c. The person has willfully or by reason of gross negligence caused

or allowed destruction, damage or injury to the premises.

d. The person has continued, after written notice to cease, to

substantially violate or breach any of the landlord's rules and

regulations governing said premises, provided such rules and

regulations are reasonable and have been accepted in writing by the

tenant or made a part of the lease at the beginning of the lease term.

e. (1) The person has continued, after written notice to cease, to

substantially violate or breach any of the covenants or agreements

contained in the lease for the premises where a right of reentry is

reserved to the landlord in the lease for a violation of such covenant

or agreement, provided that such covenant or agreement is reasonable

and was contained in the lease at the beginning of the lease term.

(2) In public housing under the control of a public housing

authority or redevelopment agency, the person has substantially

violated or breached any of the covenants or agreements contained in

the lease for the premises pertaining to illegal uses of controlled

dangerous substances, or other illegal activities, whether or not a right

of reentry is reserved to the landlord in the lease for a violation of such

covenant or agreement, provided that such covenant or agreement

conforms to federal guidelines regarding such lease provisions and was

contained in the lease at the beginning of the lease term.

f. The person has failed to pay rent after a valid notice to quit and

notice of increase of said rent, provided the increase in rent is not

unconscionable and complies with any and all other laws or municipal

ordinances governing rent increases.

g. The landlord or owner (1) seeks to permanently board up or

demolish the premises because he has been cited by local or State

housing inspectors for substantial violations affecting the health and

safety of tenants and it is economically unfeasible for the owner to

eliminate the violations; (2) seeks to comply with local or State

housing inspectors who have cited him for substantial violations

affecting the health and safety of tenants and it is unfeasible to so

comply without removing the tenant; simultaneously with service of

notice of eviction pursuant to this clause, the landlord shall notify the

Department of Community Affairs of the intention to institute

proceedings and shall provide the department with such other

information as it may require pursuant to rules and regulations. The

department shall inform all parties and the court of its view with

respect to the feasibility of compliance without removal of the tenant

and may in its discretion appear and present evidence; (3) seeks to

correct an illegal occupancy because he has been cited by local or

State housing inspectors or zoning officers and it is unfeasible to

correct such illegal occupancy without removing the tenant; or (4) is

a governmental agency which seeks to permanently retire the premises

from the rental market pursuant to a redevelopment or land clearance

plan in a blighted area. In those cases where the tenant is being

removed for any reason specified in this subsection, no warrant for

possession shall be issued until P.L.1967, c.79 (C.52:31B-1 et seq.)

and P.L.1971, c.362 (C.20:4-1 et seq.) have been complied with.

h. The owner seeks to retire permanently the residential building

or the mobile home park from residential use or use as a mobile home

park, provided this subsection shall not apply to circumstances

covered under subsection g. of this section.

i. The landlord or owner proposes, at the termination of a lease,

reasonable changes of substance in the terms and conditions of the

lease, including specifically any change in the term thereof, which the

tenant, after written notice, refuses to accept; provided that in cases

where a tenant has received a notice of termination pursuant to

subsection g. of section 3 of P.L.1974, c.49 (C.2A:18-61.2), or has a

protected tenancy status pursuant to section 9 of the "Senior Citizens

and Disabled Protected Tenancy Act," P.L.1981, c.226

(C.2A:18-61.30), or pursuant to the "Tenant Protection Act of 1992,"

P.L.1991, c.509 (C.2A:18-61.40 et al.), the landlord or owner shall

have the burden of proving that any change in the terms and conditions

of the lease, rental or regulations both is reasonable and does not

substantially reduce the rights and privileges to which the tenant was

entitled prior to the conversion.

j. The person, after written notice to cease, has habitually and

without legal justification failed to pay rent which is due and owing.

k. The landlord or owner of the building or mobile home park is

converting from the rental market to a condominium, cooperative or

fee simple ownership of two or more dwelling units or park sites,

except as hereinafter provided in subsection l. of this section. Where

the tenant is being removed pursuant to this subsection, no warrant for

possession shall be issued until this act has been complied with. No

action for possession shall be brought pursuant to this subsection

against a senior citizen tenant or disabled tenant with protected

tenancy status pursuant to the "Senior Citizens and Disabled Protected

Tenancy Act," P.L.1981, c.226 (C.2A:18-61.22 et al.), or against a

qualified tenant under the "Tenant Protection Act of 1992," P.L.1991,

c.509 (C.2A:18-61.40 et al.), as long as the agency has not terminated

the protected tenancy status or the protected tenancy period has not

expired.


l. (1) The owner of a building or mobile home park, which is

constructed as or being converted to a condominium, cooperative or

fee simple ownership, seeks to evict a tenant or sublessee whose initial

tenancy began after the master deed, agreement establishing the

cooperative or subdivision plat was recorded, because the owner has

contracted to sell the unit to a buyer who seeks to personally occupy

it and the contract for sale calls for the unit to be vacant at the time of

closing. However, no action shall be brought against a tenant under

paragraph (1) of this subsection unless the tenant was given a

statement in accordance with section 6 of P.L.1975, c.311

(C.2A:18-61.9);

(2) The owner of three or less condominium or cooperative units

seeks to evict a tenant whose initial tenancy began by rental from an

owner of three or less units after the master deed or agreement

establishing the cooperative was recorded, because the owner seeks to

personally occupy the unit, or has contracted to sell the unit to a buyer

who seeks to personally occupy it and the contract for sale calls for

the unit to be vacant at the time of closing;

(3) The owner of a building of three residential units or less seeks

to personally occupy a unit, or has contracted to sell the residential

unit to a buyer who wishes to personally occupy it and the contract for

sale calls for the unit to be vacant at the time of closing.

m. The landlord or owner conditioned the tenancy upon and in

consideration for the tenant's employment by the landlord or owner as

superintendent, janitor or in some other capacity and such employment

is being terminated.

n. The person has been convicted of or pleaded guilty to, or if a

juvenile, has been adjudicated delinquent on the basis of an act which

if committed by an adult would constitute an offense under the

"Comprehensive Drug Reform Act of 1987," N.J.S.2C:35-1 et al.

involving the use, possession, manufacture, dispensing or distribution

of a controlled dangerous substance, controlled dangerous substance

analog or drug paraphernalia within the meaning of that act within or

upon the leased premises or the building or complex of buildings and

land appurtenant thereto, or the mobile home park, in which those

premises are located, and has not in connection with his sentence for

that offense either (1) successfully completed or (2) been admitted to

and continued upon probation while completing, a drug rehabilitation

program pursuant to N.J.S.2C:35-14; or, being the tenant or lessee of

such leased premises, knowingly harbors or harbored therein a person

who has been so convicted or has so pleaded, or otherwise permits or

permitted such a person to occupy those premises for residential

purposes, whether continuously or intermittently, except that this

subsection shall not apply to a person harboring or permitting a

juvenile to occupy the premises if the juvenile has been adjudicated

delinquent upon the basis of an act which if committed by an adult

would constitute the offense of use or possession under the said act.

No action for removal may be brought pursuant to this subsection

more than two years after the date of the adjudication or conviction or

more than two years after the person's release from incarceration

whichever is the later.

o. The person has been convicted of or pleaded guilty to, or if a

juvenile, has been adjudicated delinquent on the basis of an act which

if committed by an adult would constitute an offense under

N.J.S.2C:12-1 or N.J.S.2C:12-3 involving assault, or terroristic threats

against the landlord, a member of the landlord's family or an employee

of the landlord; or, being the tenant or lessee of such leased premises,

knowingly harbors or harbored therein a person who has been so

convicted or has so pleaded, or otherwise permits or permitted such

a person to occupy those premises for residential purposes, whether

continuously or intermittently. No action for removal may be brought

pursuant to this subsection more than two years after the adjudication

or conviction or more than two years after the person's release from

incarceration whichever is the later.

p. The person has been found, by a preponderance of the evidence,

liable in a civil action for removal commenced under this act for an

offense under N.J.S.2C:20-1 et al. involving theft of property located

on the leased premises from the landlord, the leased premises or other

tenants residing in the leased premises, or N.J.S.2C:12-1 or

N.J.S.2C:12-3 involving assault or terroristic threats against the

landlord, a member of the landlord's family or an employee of the

landlord, or under the "Comprehensive Drug Reform Act of 1987,"

N.J.S.2C:35-1 et al., involving the use, possession, manufacture,

dispensing or distribution of a controlled dangerous substance,

controlled dangerous substance analog or drug paraphernalia within

the meaning of that act within or upon the leased premises or the

building or complex of buildings and land appurtenant thereto, or the

mobile home park, in which those premises are located, and has not in

connection with his sentence for that offense either (1) successfully

completed or (2) been admitted to and continued upon probation while

completing a drug rehabilitation program pursuant to N.J.S.2C:35-14;

or, being the tenant or lessee of such leased premises, knowingly

harbors or harbored therein a person who committed such an offense,

or otherwise permits or permitted such a person to occupy those

premises for residential purposes, whether continuously or

intermittently, except that this subsection shall not apply to a person

who harbors or permits a juvenile to occupy the premises if the

juvenile has been adjudicated delinquent upon the basis of an act which

if committed by an adult would constitute the offense of use or

possession under the said "Comprehensive Drug Reform Act of 1987."

q. The person has been convicted of or pleaded guilty to, or if a

juvenile, has been adjudicated delinquent on the basis of an act which

if committed by an adult would constitute an offense under

N.J.S.2C:20-1 et al. involving theft of property from the landlord, the

leased premises or other tenants residing in the same building or

complex; or, being the tenant or lessee of such leased premises,

knowingly harbors therein a person who has been so convicted or has

so pleaded, or otherwise permits such a person to occupy those

premises for residential purposes, whether continuously or

intermittently.

For purposes of this section, (1) "developmental disability" means

any disability which is defined as such pursuant to section 3 of

P.L.1977, c.82 (C.30:6D-3); (2) "member of the immediate family"

means a person's spouse, parent, child or sibling, or a spouse, parent,

child or sibling of any of them; and (3) "permanently" occupies or

occupied means that the occupant maintains no other domicile at

which the occupant votes, pays rent or property taxes or at which rent

or property taxes are paid on the occupant's behalf.

(cf: P.L.1997, c.228, s.1)


      1. This act shall take effect immediately.

STATEMENT


The purpose of this bill is to prevent the constructive eviction of

tenants from their rental premises when a landlord who had agreed to

pay for certain utilities fails to do so. Current regulations provide that

a tenant be notified whenever electric, gas, water or sewer utilities are

in danger of being discontinued because of a failure on the part of the

landlord to pay for them. Under such circumstances, a utility company

is required to offer a tenant continued service to be billed to the

tenant, unless the utility company demonstrates that such billing is not

"feasible." Lack of feasibility is most likely to occur when the utility

is not one that can be billed to individual tenants, such as water.

This bill would require the utility company to allow a tenants'

organization to be billed for the service as a group. In addition, a

tenant belonging to such an organization would be permitted to deduct

from his rental payment an amount equal to his contribution for the

utility payment. The bill also amends the eviction laws to exclude this

situation from being considered nonpayment of rent. Thus, a landlord

would not have good cause to evict tenants who are withholding rent

to pay utility bills which are the obligation of the landlord.

Currently, tenants who are not allowed to maintain utilities to their

premises in this manner have no recourse but to be evicted and then to

seek relocation assistance, either from a municipality or the landlord.

This bill will help avoid evictions that would otherwise occur, and will

benefit municipalities in holding down costs of relocation assistance.