SENATE, No. 2325

STATE OF NEW JERSEY

INTRODUCED DECEMBER 11, 1997

By Senator CASEY

An Act concerning notification to mortgage holders and insurance companies of violations involving hotels and multiple dwellings and amending P.L.1967, c.76 and P.L.1975, c.191.

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

    1. Section 12 of P.L.1967, c.76 (C.55:13A-12) is amended to read as follows:

    12. (a) The owner of each hotel, or of each multiple dwelling occupied or intended to be occupied by three or more persons living independently of each other, shall file with the commissioner, upon forms provided by the commissioner, a certificate of registration. Each such certificate of registration shall be accompanied by a fee of $10.00 and shall include such information as the commissioner shall prescribe to enforce the provisions of this law [; provided, however, that in] , including the name and address of the insurance company insuring the property if such property is insured, and the insurance policy number. The owner of each such property shall notify the commissioner of any change in insurance information within five business days of such a change. In the case of a multiple dwelling, the information required shall be at least that required pursuant to section 2 of P.L.1974, c. 50 (C. 46:8-28). Upon the receipt of said certificate of registration and fee, the commissioner shall forthwith validate and issue to the owner of such hotel or multiple dwelling a validated copy of the certificate of registration, which validated copy shall be kept posted by the owner of such hotel or multiple dwelling at all times in the lobby or other conspicuous place on the premises. The posted certificate shall be reasonably protected from removal, alteration, defacement or damage by the elements in such manner as the commissioner may prescribe.

    (b) The owner of each hotel, or of each multiple dwelling occupied or intended to be occupied by three or more persons living independently of each other shall appoint an agent for the purpose of receiving service of process and such orders or notices as may be issued by the commissioner pursuant to this act. Each such agent so appointed shall be a resident of the county in which the hotel or multiple dwelling is located or shall have an office in the county. If the agent is a corporation, it shall be licensed to do business in this State.

    (c) In the case of any transfer of the ownership in any hotel, or of any multiple dwelling occupied or intended to be occupied by three or more persons living independently of each other, whether by sale, assignment, gift, intestate succession, testate devolution, reorganization, receivership, foreclosure or execution process, it shall be the duty of the new owner thereof to file with the commissioner, within 20 days of said transfer, a certificate of registration pursuant to subsection (a) of this section, and to appoint an agent for the service of process pursuant to subsection (b) of this section.

    (d) In any case whether the owner of a hotel or multiple dwelling subject to the provisions of this act has not fulfilled the requirements of this section, the commissioner shall notify the owner of the violation of this section and order that registration be accomplished within 30 days. The notice and order shall include an accurate restatement of the subsection with which the owner has not complied. If the owner has not complied with the order of the commissioner within 30 days, he shall be liable for a penalty of $200.00 for each registration which the commissioner shall have ordered. The commissioner may issue a certificate to the clerk of the superior court that an owner is indebted for the payment of such penalty and thereupon the clerk shall immediately enter upon his record of docketed judgments the name of such owner, and of the State, a designation of the statute under which the penalty is imposed, the amount of the penalty so certified and the date such certification was made. The making of the entry shall have the same force and effect as the entry of the docketed judgment in the office of such clerk, and the commissioner shall have all of the remedies and maintain all of the proceedings for the collection thereof which may be had or taken upon the recovery of a judgment in a civil action, but without prejudice to the owner's right of appeal.

(cf: P.L.1981, c.442, s.6)

    2. Section 2 of P.L.1975, c.191 (C.55:13A-20.2) is amended to read as follows:

    2. Whenever [the Attorney General files an action in the Superior Court, on behalf of the Commissioner of Community Affairs, pursuant to section 6 (C. 55:13A-6) of the "Hotel and Multiple Dwelling Law" P.L.1967, c. 76 or the Penalty Enforcement Law (N.J.S. 2A:58-1 et seq.) following the failure of] an owner of a building subject to the Hotel and Multiple Dwelling Law fails to abate violations of the regulations promulgated pursuant to [the] that law [after receipt of notices and orders to terminate violations as required by the law or the failure of the owner to pay a civil penalty assessed pursuant to the laws after receipt of notice and order to pay penalty] within the time frame allowed by the department or the local inspecting agency, as appropriate, and a subsequent notice of violation is issued to the property owner, the Commissioner of Community Affairs, or the local inspecting agency, as appropriate, shall cause to be forwarded, by regular first class mail, to any mortgage holder of record and to any insurance company of record a notice of [filing of the action and copies of any notices and orders which provide the cause for said action] the violation and any additional violations issued on the property. The mortgage holder of record shall be any holder of record as filed with the municipal clerk pursuant to P.L.1974, c. 50 (C. 46:8-27 et seq.). The insurance company of record shall be the insurance company listed on the certificate of registration filed with the commissioner pursuant to the requirements of section 12 of P.L.1967, c. 76 (C.55:13A-12).

(cf: P.L.1975, c.191, s.2)

    3. This act shall take effect immediately.

STATEMENT

    This bill requires that the owner of a dwelling subject to the provisions of the "Hotel and Multiple Dwelling Law," P.L.1967, c.76 (C.55:13A-1 et seq.), at the time the certificate of registration required by that law is filed, must provide to the Commissioner of Community Affairs the name and address of the insurance company insuring the property if the property is insured, and the insurance policy number. The owner must also, within five business days of any change in insurance information, report the change to the commissioner.

    The bill also provides that whenever the owner of a building subject to the "Hotel and Multiple Dwelling Law" fails to abate violations of that law within the time frame allowed by the Department of Community Affairs or the local inspecting agency, and a subsequent notice of violation is issued to the property owner, the Commissioner or the local inspecting agency, as appropriate, must mail a notice of the violation and any additional violations issued on the property to both the mortgage holder and the insurance company of the property.

Requires notification to mortgage holder and insurance company of violations under "Hotel and Multiple Dwelling Law."