Bill Text: NJ S2850 | 2020-2021 | Regular Session | Introduced
Bill Title: Authorizes early termination of residential leases by certain tenants economically impacted during time of coronavirus disease 2019 pandemic.
Spectrum: Partisan Bill (Democrat 1-0)
Status: (Introduced - Dead) 2020-08-25 - Introduced in the Senate, Referred to Senate Community and Urban Affairs Committee [S2850 Detail]
Download: New_Jersey-2020-S2850-Introduced.html
Sponsored by:
Senator BRIAN P. STACK
District 33 (Hudson)
SYNOPSIS
Authorizes early termination of residential leases by certain tenants economically impacted during time of coronavirus disease 2019 pandemic.
CURRENT VERSION OF TEXT
As introduced.
An Act authorizing the early termination of residential leases by certain tenants economically impacted during time of the coronavirus disease 2019 pandemic.
Be It Enacted by the Senate and General Assembly of the State of New Jersey:
1. a. A lease for a term of one or more years, entered into agreement prior to May 1, 2020, of a property that has been leased and used by the lessee solely for the purpose of providing a dwelling place for the lessee, or the lessee and the lessee's family, may be terminated prior to the expiration date thereof, and without financial penalty, if:
(1) The lessee or the lessee's spouse, or both, suffered a substantial reduction of income resulting from the COVID-19 pandemic or the Public Health Emergency, established pursuant to Executive Order No. 103 of 2020, or State of Emergency declared in response thereto, including from a reduction in hours or loss of employment, or increased costs incurred in necessary child care resulting from the closure of schools or caring for family members who are ill due to COVID-19 or quarantined due to a suspected exposure to COVID-19, or for funeral costs due to COVID-19; and
(2) Written notice is provided from the lessee to the lessor providing documentation of the substantial reduction of income from the COVID-19 pandemic and alerting the lessor of the intent to terminate the lease.
b. (1) Unless the lessor and lessee arrange for an earlier termination, terminations pursuant to this section shall take effect on the 40th day following the receipt by the lessor of the written notice, and the rent shall be paid up to the time of termination, at which time the lease shall cease and come to an end. If a lessee's rent is due on a monthly basis, and this timeframe causes the termination to occur when a month is only partially complete, then the lessee shall be responsible for only the percentage of the last month's rent that corresponds to the percentage of the month that is complete upon termination. The property shall be vacated and possession shall be turned over to the lessor at least five working days prior to the 40th day following receipt by the lessor of written notice.
(2) Notwithstanding any other law, ordinance, rule or regulation to the contrary that may provide for an extended repayment period for unpaid rent, all rent owed by the lessee to the lessor shall be paid up to the time of the termination of the lease.
c. (1) Pursuant to Executive Order No. 128 of 2020 and established under this section, the lessee may direct the lessor to use security deposit monies, and any accrued interest, to offset rent owed up to the time of termination established in paragraphs (1) and (2) of subsection b. of this section.
(2) The use of security deposit monies, and any accrued interest, to offset rent owed by the lessee shall not prohibit the lessor from collecting charges expended in accordance with the terms of the lease and owed at the time of the lease termination, including damages to the property that are not ordinary wear and tear.
d. In response to a complaint to the Attorney General from a lessee, or on the Attorney General's independent initiative, the Attorney General may bring an action alleging a lessor has violated the provisions of this section. The Attorney General shall establish penalties for violations of the provisions of this section.
e. The Commissioner of Community Affairs shall establish a public awareness campaign to inform the public about the provisions of this section.
2. This act shall take effect immediately and shall expire 60 days following the expiration of the Public Health Emergency, established pursuant to Executive Order No. 103 of 2020.
STATEMENT
The bill authorizes the early termination of residential leases by certain tenants economically impacted during time of the coronavirus disease 2019 (COVID-19) pandemic.
Specifically, a lease for a term of one or more years, entered into agreement prior to May 1, 2020, of a property that has been leased and used by the lessee solely for the purpose of providing a dwelling place for the lessee, or the lessee and the lessee's family, may be terminated prior to the expiration date thereof, and without financial penalty, if:
(1) The lessee or the lessee's spouse, or both, suffered a substantial reduction of income resulting from the COVID-19 pandemic or the Public Health Emergency, established pursuant to Executive Order No. 103 of 2020, or State of Emergency declared in response thereto, including from a reduction in hours or loss of employment, or increased costs incurred in necessary child care resulting from the closure of schools or caring for family members who are ill due to COVID-19 or quarantined due to a suspected exposure to COVID-19, or for funeral costs due to COVID-19; and
(2) Written notice is provided from the lessee to the lessor providing documentation of the substantial reduction of income from the COVID-19 pandemic and alerting the lessor of the intent to terminate the lease.
Under the bill, unless the lessor and lessee arrange for an earlier termination, terminations would take effect on the 40th day following the receipt by the lessor of the written notice, and the rent would be paid up to the time of termination, at which time the lease would cease and come to an end. If a lessee's rent is due on a monthly basis, and this timeframe causes the termination to occur when a month is only partially complete, then the lessee would be responsible for only the percentage of the last month's rent that corresponds to the percentage of the month that is complete upon termination. The property would be vacated and possession would be turned over to the lessor at least five working days prior to the 40th day following receipt by the lessor of written notice.
Notwithstanding any other law, ordinance, rule or regulation to the contrary that may provide for an extended repayment period for unpaid rent, all rent owed by the lessee to the lessor would be paid up to the time of the termination of the lease.
Pursuant to Executive Order No. 128 of 2020 and established under this bill, the lessee may direct the lessor to use security deposit monies, and any accrued interest, to offset rent owed up to the time of termination. The use of security deposit monies, and any accrued interest, to offset rent owed by the lessee would not prohibit the lessor from collecting charges expended in accordance with the terms of the lease and owed at the time of the lease termination, including damages to the property that are not ordinary wear and tear.
In response to a complaint to the Attorney General from a lessee, or on the Attorney General's independent initiative, the Attorney General may bring an action alleging a lessor has violated the provisions of the bill. The Attorney General would also establish penalties for a lessor in violation of the provisions of the bill.
The Commissioner of Community Affairs would establish a public awareness campaign to inform the public about the provisions of the bill.
The bill would take effect immediately and would expire 60 days following the expiration of the Public Health Emergency, established pursuant to Executive Order No. 103 of 2020.
