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A 4856

Expands liability of certain individuals associated with limited liability companies and other commercial entities, when acting as residential landlord.

2026-2027 Regular Session Introduced by Shama Haider and 3 co-sponsors

Expands liability to include certain individuals tied to landlord entities (owners, managers, directors, officers) for multiple housing, health-code, and HMDL charges.

Introduced, Referred to Assembly Housing Committee
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Bill Summary · A 4856

Summary of Bill A-4856 (New Jersey, 2026) — Expands liability of certain individuals associated with LLCs and other commercial entities when acting as residential landlords

Purpose and intent

  • This bill broadens the liability framework for rental housing by allowing courts to hold certain individuals connected to a landlord entity liable for housing-, building-, or health-code charges, and charges under the Hotel and Multiple Dwelling Law (HMDL).
  • It targets charges issued to a landlord for residential property, extending accountability beyond the entity itself to key individuals associated with the entity, under specified conditions.

Key provisions and changes

Section 1: Liability for housing/building/health-code charges

  • A court may hold the entity (corporation, LLC, or other legal/commercial entity) liable for such charges.
  • Under certain conditions, members of a member-managed LLC, managers of a manager-managed LLC, and directors/officers of a corporation may be held jointly and severally liable for:
    • At least three charges concerning the property leased for residential purposes.
    • At least three charges unpaid by the thirteenth month after the first charge due date.
    • Notice of the charges and impending enforcement must have been issued to the address of record owner, registered managing/agent, members/managers (as applicable), directors/officers, and each mortgage or lienholder listed in landlord registration data.
    • If the landlord is unregistered (violation of registration requirements), the notice rule does not apply.
    • Notice remains effective even if the entity ceases to own the property, so long as the same individual has a continuing role with the new owner.

Section 2: Liability for HMDL charges

  • Similar framework as Section 1, but applying to charges under the Hotel and Multiple Dwelling Law.
  • Same conditions apply for holding members/managers or directors/officers jointly and severally liable.

Section 3: Directors’ liability

  • Directors of a corporation may be jointly and severally liable for:
    • Housing, building, or health-code charges (under the conditions in Section 1).
    • HMDL charges (under the conditions in Section 2).

Section 4: Officers’ liability

  • Corporate officers may be jointly and severally liable for the same sets of charges as Sections 1 and 2.

Section 5: Revision of LLC liability statute

  • Amends Section 30 of P.L.2012, c.50 (Revised Uniform Limited Liability Company Act) to:
    • Confirm that certain members (at least 10% ownership) and managers can be held jointly and severally liable for the same types of charges (housing/building/health-code and HMDL).
    • Retains existing protections that a LLC’s debts generally stay with the company, not its members, except as noted.

Section 6: Landlord registration requirements

  • Expands required registration disclosures for landlords:
    • Adds obligation to provide the name and address of the registered agent (for entities beyond individual owners).
    • Requires listing of members with at least 10% interest (for member-managed LLCs) and managers or officers/directors as applicable.
  • Municipalities must use this information to notify relevant parties (e.g., construction officials) about ownership and management details.

Section 8: Municipal lien option

  • Allows municipalities to set a charge issued to a landlord for code violations as a lien on the property after 13 months of nonpayment, enforceable like a real property tax lien.
  • Requires a 90-day prior notice to owner and other interested parties before conversion to a lien.
  • If enacted, the lien would be added to property taxes and collected/enforced like taxes.

Section 9: Effective date

  • The act takes effect immediately upon enactment.

Who is affected

  • Landlords organized as corporations, LLCs, or other legal/commercial entities, and their associated individuals:
    • Record owners, registered agents, managing agents, and lienholders/mortgagees.
    • LLC members with at least 10% ownership (for member-managed entities).
    • LLC managers (for manager-managed entities).
    • Corporate directors and officers.
  • Municipalities, which would gain authority to impose lien treatment for unpaid code charges.

Procedural and timeline aspects

  • Conditions for imposing joint and several liability require at least three related charges and a 13-month nonpayment window from the first due date.
  • Notice requirements apply to designated individuals and entities; noncompliance with landlord registration could limit certain notice obligations.
  • If adopted, municipalities may convert unpaid charges into liens after a specified notice period, aligning with tax lien processes.

Overall, the bill significantly expands who can be held responsible for residential-tenant code violations and related charges, while strengthening landlord registration requirements and providing a mechanism to convert persistent nonpayment into municipal liens.

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

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