S3124

An Act concerning tenant payment of rent to landlords, and supplementing P.L.1974, c.47 (C.2A:42-10.15 et seq.) and Title 46 of the Revised Statutes.

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

1. a. In an eviction action for nonpayment of rent, pursuant to subsection a. of section 2 of P.L.1974, c.49 (C.2A:18-61.1), the court shall provide a period of three business days after the date on which an eviction order or lockout is executed due to late payment of rent, for all tenants to submit a rent payment. A late fee shall not be imposed if rent is paid on or before the third business day after the day on which the eviction order or lockout is executed.

b. A landlord shall be required to accept all payments of rent made by a tenant within the three business day period established by subsection a. of this section and shall be required to relinquish control of the property to the tenant.

2. a. A landlord shall be required to accept a rent payment made by any means, including but not limited to cash payments, personal checks, or payments made by third parties such as rental assistance programs or charitable organizations on behalf of the tenant. A landlord shall provide a signature on any forms or documents required for a tenant to secure rental assistance from a third party. A landlord shall not deny payment of rent due to the means by which the payment is made. If a landlord does not respond to a tenant’s efforts to resolve the issue of late payment through a third party, the tenant may seek a remedy by requesting an order to show cause.

b. A landlord shall provide the tenant with a receipt after each rent payment made which shall include the date on which the payment was made.

c. In the event that a landlord is entitled to recover attorney’s fees or expenses under the lease agreement, incurred as a result of the failure of the tenant to perform any agreement in the lease, the amount awarded to the landlord shall not exceed 30 percent of the attorney’s fees and expenses paid by the landlord.

d. A landlord who violates any provision of P.L. , c. (C. ) (pending before the legislature as this bill), shall be subject to a penalty of not more than $500 for each offense. The penalty shall be collected and enforced by summary proceedings pursuant to the “Penalty Enforcement Law of 1999,” P.L.1999, c.274 (C.2A:58-10 et seq.), in the municipal court having jurisdiction.

3. This act shall take effect on the first day of the second month next following enactment.

STATEMENT

This bill would require the court to provide tenants a grace period of three business days after the date on which an eviction order or lockout is executed due to late payment of rent, to submit a payment of rent. A landlord shall be required to accept all payments of rent made by a tenant within the three business day period and shall be required to relinquish control of the property to the tenant.

This bill would also require that landlords accept rent payments made by any means, including but not limited to cash payments, personal checks, or payments made by third parties such as rental assistance programs or charitable organizations on behalf of the tenant. If a landlord does not respond to a tenant’s efforts to resolve the issue of late payment through a third party, the tenant may seek a remedy by requesting an order to show cause. Upon payment of rent, a landlord is required to provide the tenant with a receipt after each rent payment made which shall include the date on which the payment was made.

In the event that a landlord is entitled to recover attorney’s fees or expenses under the lease agreement, incurred as a result of the failure of the tenant to perform any agreement in the lease, the amount awarded to the landlord must not exceed 30 percent of the attorney’s fees and expenses paid by the landlord. A landlord who violates any provision of this bill will be subject to a penalty of not more than $500 for each offense.