ASSEMBLY, No. 425
STATE OF NEW JERSEY
Introduced Pending Technical Review by Legislative Counsel
PRE-FILED FOR INTRODUCTION IN THE 1996 SESSION
By Assemblyman KELLY
An Act concerning rental housing and amending P.L.1987, c.153.
Be It Enacted by the Senate and General Assembly of the State of New Jersey:
1. Section 1 of P.L.1987, c.153 (C.2A:42-84.1) is amended to read as follows:
1. As used in this act:
a. "Completion of construction" means issuance of a certificate of occupancy pursuant to section 15 of the "State Uniform Construction Code Act," P.L.1975, c.217 (C.52:27D-133)[;].
b. "Constructed" means constructed, erected or converted but excludes rehabilitation of premises rented previously for residential purposes without an intervening use for other purposes for a period of at least two years prior to conversion. Mere vacancy shall not be considered an intervening use for the purposes of this subsection[;]. As applied to a mobile home park, the term comprises all construction, site preparation and installation of equipment involved in preparing land not previously used for a mobile home park to be employed in that manner.
c. "Constructed after the effective date of this act" means constructed pursuant to a construction permit issued on or after [the effective date of this act;]June 25, 1987.
d. "Constructed for senior citizens" means constructed under a governmental program restricting occupancy of at least 90% of the dwelling units to senior citizens and any members of their immediate households or their occupant surviving spouses, or constructed as a retirement subdivision or retirement community as defined in the "Retirement Community Full Disclosure Act," P.L.1969, c.215 (C.45:22A-1 et seq.)[;].
e. "Multiple dwelling" means any building or structure and land appurtenant thereto containing four or more dwelling units, other than dwelling units constructed for occupation by senior citizens, rented or offered for rent to four or more tenants or family units[;].
f. "Period of amortization" means the time during which the principal amount of the mortgage loan and interest thereon would be paid entirely through periodic payments, whether or not the term of the mortgage loan is for a shorter period concluding with a balloon payment[; and].
g. "Senior citizens" means persons 62 years of age or older.
h. "Mobile home park" means a mobile home park as defined in section 3 of "The Affordable Housing Act of 1983," P.L.1983, c.386 (C.40:55D-102).
(cf: P.L.1987, c.153, s.1)
2. Section 2 of P.L.1987, c.153 (C.2A:42-84.2) is amended to read as follows:
2. In any municipality which has enacted or which hereafter enacts a rent control or rent leveling ordinance, other than under the authority of P.L.1966, c.168 (C.2A:42-74 et seq.), those provisions of the ordinance which limit the periodic or regular increases in base rentals of dwelling units shall not apply to multiple dwellings constructed after the effective date of [this act,] P.L.1987, c.153 or to mobile home parks constructed after the effective date of P.L. , c. (now pending in the Legislature as this bill), for a period of time not to exceed the period of amortization of any initial mortgage loan obtained for the multiple dwelling or mobile home park, or for 30 years following completion of construction, whichever is less.
(cf: P.L.1987, c.153, s.2)
3. Section 3 of P.L.1987, c.153 (C.2A:42-84.3) is amended to read as follows:
3. The owner of any multiple dwelling or mobile home park exempted from a rent control or rent leveling ordinance pursuant to this act, shall, prior to entering into any lease with a person for tenancy of any premises located in the multiple dwelling or for any home site in the mobile home park, furnish the prospective tenant with a written statement that the multiple dwelling [in which the premises is located] unit or mobile home site that is the subject of the lease is exempt from rent control or rent leveling for such time as may remain in the exemption period. Each lease offered to a prospective tenant for any dwelling unit or mobile home site therein during the period the multiple dwelling or mobile home park is so exempted shall contain a provision notifying the tenant of the exemption.
(cf: P.L.1987, c.153, s.3)
4. Section 4 of P.L.1987, c.153 (C.2A:42-84.4) is amended to read as follows:
4. The owner of any multiple dwelling or mobile home park claiming an exemption from a rent control or rent leveling ordinance pursuant to this act shall file with the municipal construction official, at least 30 days prior to the issuance of a certificate of occupancy for the newly constructed multiple dwelling or mobile home park, a written statement of the owner's claim of exemption from an ordinance under this act, including therein a statement of the date upon which the exemption period so claimed shall commence, such information as may be necessary to effectively locate and identify the multiple dwelling or mobile home park for which the exemption is claimed, and a statement of the number of rental dwelling units [in the multiple dwelling] or mobile home sites therein for which the exemption is claimed. The owner shall, at least 30 days prior to the date of the termination of the exemption period afforded pursuant to this act, file with the municipal construction official a notice of the date of termination of the exemption period for the affected multiple dwelling or mobile home park.
(cf: P.L.1987, c.153, s.4)
5. Section 5 of P.L.1987, c.153 (C.2A:42-84.5) is amended to read as follows:
5. It is the intent of this act, that the exemption from rent control or rent leveling ordinances afforded under this act shall apply to any form of rent control, rent leveling or rent stabilization, whether adopted now or in the future, and by whatever name or title adopted, which would limit in any manner the periodic or regular increases in base rentals of dwelling units of multiple dwellings constructed after the effective date of this act or of mobile home parks constructed after the effective date of P.L. , c. (C. ) (now pending in the Legislature as this bill). No municipality, county or other political subdivision of the State, or agency or instrumentality thereof, shall adopt any ordinance, resolution, or rule or regulation, or take any other action, to limit, diminish, alter or impair any exemption afforded pursuant to this act.
(cf: P.L.1987, c.153 s.5)
6. Section 6 of P.L.1987, c.153 (C.2A:42-84.6) is amended to read as follows:
6. It is the intent of this act to establish an experimental program whereby the construction of multiple dwellings and mobile home parks in this State shall be encouraged, and the marketability of those multiple dwellings and mobile home parks shall be maintained, to the greatest extent economically possible, through the exemption by law of newly constructed multiple dwellings and mobile home parks from rent control, rent leveling and rent stabilization ordinances. The Legislature, therefore, declares it to be public policy of this State that, within the limitations imposed by this act, the exemptions granted under this act shall not be limited, diminished, altered, or impaired during the period of exemption afforded, in order to maintain in this respect a predictable environment within which the financing, construction and marketing of new multiple dwellings and mobile home parks can occur, and to permit the Legislature to evaluate the results of the experimental program after a specified period of time during which the program shall have been given a fair opportunity for success, and during which the coherence of the statutory scheme establishing the program has been preserved.
(cf: P.L.1987, c.153, s.6)
7. Section 7 of P.L.1987, c.153 is amended to read as follows:
7. This act shall take effect immediately, and shall expire ten years following enactment, but the expiration of this act shall not affect any multiple dwelling or mobile home park for which an exemption from a rent control or rent leveling ordinance was afforded prior to the expiration date, but the period of exemption so afforded shall continue for the full period afforded under this act.
(cf: P.L.1992, c.206, s.1)
8. This act shall take effect immediately.
STATEMENT
P.L.1987, c.153 (C.2A:42-84.1 et seq.) instituted an "experimental program" to encourage greater production of rental housing by exempting newly constructed multiple dwellings from local rent controls. The program was intended to run for five years, and to expire on June 25, 1992, but was extended for another five years by P.L.1992, c.206. This bill would extend the exemption in regard to rental fees of newly established mobile home parks in which home sites are leased to 10 or more tenants.
Extends rent control exemption under P.L.1987, c.153 to mobile home parks.