Bill

S 3658

Enacts the feathered lives also count act

2025 Regular Session Introduced by Pat Fahy and 10 co-sponsors

New Jersey bill caps residential rent increases for 12 months at the lower of 5% plus cost-of-living change or 10%, with exemptions for certain housing types.

REFERRED TO INVESTIGATIONS AND GOVERNMENT OPERATIONS

WeVote Research Nonpartisan

Bill Summary · S 3658

Summary: S 3658 – Enacts the feathered lives also count act

Overview

S 3658 is a New Jersey bill introduced on September 26, 2024, that would establish a statutory cap on residential rent increases and expand protections for tenants. The bill proposes a 12-month cap on rent increases, plus a set of exemptions and transitional rules. It is currently referred to Investigations and Government Operations after initially being referred to the Senate Community and Urban Affairs Committee.

Purpose and intent

Acknowledges housing affordability as a key financial challenge for New Jersey residents.
Seeks to create predictable rent costs by limiting annual rent increases, aiming to keep rental housing affordable for a broader share of renters.
Establishes that the rent increase cap operates in addition to existing protections against unconscionable rent increases.

Key provisions

Rent increase cap (Section 2a): Except as otherwise provided, a residential landlord cannot increase rent by more than:
- 5 percent plus the percentage change in the cost of living, or 10 percent, whichever is lower,
- calculated based on the lowest rental rate charged for the dwelling unit at any time during the 12 months prior to the increase taking effect.
Sublease limits (Section 2b): A tenant may not sublease to a rate exceeding the allowable capped rate.
New tenancy rule (Section 2c): For new tenancies where no prior tenant remains, the initial rent rate may be set without regard to subsection 2a; the cap applies to subsequent increases after that initial rate.
Exemptions (Section 2d): The cap does not apply to:
- Non-residential property;
- Affordable housing units with government or deed restrictions;
- Dormitories for students;
- Units under a “Rent Protection Emergency” notice (which can set lower caps for a given year);
- Newly constructed units issued a certificate of occupancy within the prior 15 years;
- Certain single-family units meeting specified ownership and notice criteria (with detailed conditions about whether the landlord is a REIT/corporation/LLC with a corporate member, and transitional notice requirements);
- Duplexes where the landlord occupies one unit as principal residence.
Transitional adjustments (Section 2e): If a landlord increased rent beyond the cap between Sept. 1, 2024, and the enactment date (plus a three-month window), the rent on the first day of the third month after enactment would revert to the Sept. 1, 2024 level plus the maximum permitted increase.
Relationship to existing law (Section 2f): The new cap operates in addition to, not instead of, the existing prohibition on unconscionable rent increases.
Enforcement and remedies (Section 2g–h):
- Violations are treated as unlawful practices with available remedies and penalties under state law.
- Tenants can petition a court to terminate a lease containing a prohibited provision.
- Tenants may raise a violation as a defense to eviction.
Definitions (Section 2i): The bill defines terms such as “duplex,” “dwelling unit,” “single family dwelling unit,” “tenancy,” and specifies how “percentage change in the cost of living” is determined (via regional CPI or other approved measures).

Affected parties

Primary: Residential landlords and tenants in New Jersey.
Exclusions apply to non-residential real property, certain affordable housing, newly constructed units, dormitories, and specific ownership structures (subject to conditions).

Legislative status and actions

Introduced in the Senate on 9/26/2024; referred to Senate Community and Urban Affairs.
On 2025-01-29, referred to Investigations and Government Operations (duplicate entry also shown).
Related bills include companion Assembly measures: A 3289 and A 3180.

Potential impact and considerations

Aims to provide rent stability by limiting annual increases, benefiting renter households, especially where rents have been a dominant expense.
Creates a framework of exemptions that could limit applicability to certain markets and housing types (e.g., new construction, affordable housing, single-family units under specific ownership conditions).
Introduces enforcement mechanisms and eviction defenses, increasing tenant protections but potentially affecting landlord planning and construction strategies.
The bill includes transitional provisions to address rent increases already implemented before enactment.

Note: This summary covers introduced-language provisions. The bill may undergo amendments as it proceeds through the legislative process.

Compiled from official sources — confirm details with the bill’s official record.