C. 46:8D-13.1

P.L. 1997, CHAPTER 366, approved January 19, 1998

Senate, No. 271 (Fourth Reprint)






An Act concerning the rental of certain 2[condominium] cooperative2 1[and cooperative]1 units and supplementing chapter 8 of Title 46 of the Revised Statutes.


    Be It Enacted by the Senate and General Assembly of the State of New Jersey:


    1. a. The Legislature finds and declares that it is in the public interest of the citizens of this State that the availability of rental housing be encouraged. Therefore restrictions imposed by certain 2[condominium association bylaws] cooperative agreements2 1[or cooperative agreements]1 which unreasonably inhibit or prevent 2[the owner of a condominium unit] the holder of a proprietary lease to a cooperative unit2 1[or the holder of a proprietary lease to a cooperative unit]1 from making the unit available for rental shall be contrary to the public policy of the State of New Jersey and shall be unenforceable.

    b. Subsection a. of this 3[act] section3 shall not apply to: 3[(1)]3 any 2[condominium] cooperative2 1[or cooperative]1 in which requirements limiting occupancy to 2[unit owners] holders of proprietary leases to units2 1[or holders of proprietary leases to units]1 were established at the time that the 2[condominium] cooperative2 1[or cooperative]1 was created, and which requirements were emphasized in the offering document as an absolute condition of ownership, and have been consistently and strictly enforced since that time 3[, or (2) any unit subject to resale controls or repurchase requirements intended to preserve affordability of the unit to persons of low and moderate income, as defined in the "Fair Housing Act," P.L.1985, c.222 (C.52:27D-301 et seq.)] ,or which requirements were established upon the transfer of control of the association board from the developer to the holders of proprietary leases to units through properly amended bylaws which have been consistently and strictly enforced since the time of amendment3 .

    c. Notwithstanding any provision of law to the contrary, in those 2[condominiums] cooperatives2 1[and cooperatives]1 which meet the criteria of 3[either paragraph 1 or 2 of]3 subsection b. and in which more than ten units are under one roof, when a unit is offered for sale at or below a sales price such that a sale will result in a return of any investment only, and the unit nevertheless remains unsold for four or more months, then the owner shall have the right 3, subject to the conditions in subsection d. of this section,3 to rent the unit for such a period of time until prevailing market conditions permit a sale which will allow recoupment of the investment in the unit. For the purposes of this subsection, investment shall include the purchase price, costs related to the acquisition of the property, and the costs of any improvements made to the property.

    d. Nothing in this 3[subsection] act3 shall prohibit 3[an] a cooperative3 association from 3adopting reasonable rules necessary to protect the health, safety or interest of all of the owners, 4including rules based on lending policies of financial institutions pertaining to owner-occupancy ratios 4 or from3 requiring a 3reasonable3 minimum term of leasehold 3[of not less than 180 days]3, nor shall such associations be prohibited from requiring that all tenants comply with the properly adopted rules of the association which are applicable to other unit owners, including, but not limited to, rules relating to such matters as parking, pets, noise, and the number of permitted occupants per unit. 3A cooperative association which elects to screen tenants shall interview prospective tenants within seven days of the date of the submission of the tenant's name to the association.3

    Nothing in this 3[subsection] act3 shall grant a tenant any additional rights or protected status under the laws applicable to eviction from rental premises.


    2. This act shall take effect immediately.




Prohibits bylaws of certain cooperative associations from containing clauses unreasonably prohibiting rental.