Note on source material
- The bill number you provided (A‑4470) in the document text concerns amendments to New Jersey’s rent receivership law (P.L.2003, c.295). The header you supplied ("Provides coverage for remotely connected insulin pens…") does not match the bill text. This summary describes the receivership bill as contained in the legislative documents provided.
Summary — A‑4470 (receivership amendments)
Purpose and intent
- Clarify and tighten statutory provisions governing court‑appointed rent receiverships for residential buildings that violate housing codes. The bill resolves ambiguities in existing law (including a recommendation from the NJ Law Revision Commission) and establishes circumstances in which a court must appoint a receiver to protect tenant health and safety.
Key provisions and changes
- Eligibility criteria (unchanged substantively):
- A building is eligible for receivership if either:
- It violates state or municipal codes to such an extent that tenant health or safety is endangered, and such violations have persisted unabated for at least 90 days before the complaint filing; or
- The building shows a clear and convincing pattern of recurrent code violations (at least four citations within 12 months, or six within two years), and the owner failed to take required actions.
- Mandatory appointment:
- Where the court determines one of the eligibility criteria is met, the bill requires the court to appoint a receiver (changes prior language that allowed appointment at the court’s discretion).
- The bill removes the phrase limiting the court to “evidence provided by the plaintiff,” allowing the court to consider all relevant evidence.
- Receiver identification and alternatives:
- The court must select a mortgageholder, lienholder, or a qualified entity as receiver. If no receiver can be identified, the court must appoint an alternative qualified party (even if not registered with the department) who otherwise meets qualifications.
- Limited exceptions and owner remedies:
- If the owner opposes the complaint and proves by a preponderance that timely, adequate repairs were made, the court may dismiss.
- The court may dismiss complaints if violations are minor or if the tenant plaintiff is in material default.
- If the owner presents a reasonable written remediation plan and the court finds it acceptable, the court may delay appointing a receiver, but require the owner to meet specific deadlines; the court may require a bond that is forfeited if the owner fails to comply.
- Procedural additions and clarifications:
- Plaintiffs must file a notice of lis pendens within 10 days of filing the complaint.
- Financial and lien effects clarified: expenses advanced by a mortgageholder acting as receiver may be added to the mortgage balance; receivership does not relieve the owner of tax or lien obligations; appointment does not suspend owner obligations for operating/maintenance expenses (post‑appointment expenses are the receiver’s responsibility).
Who is affected
- Tenants: May obtain court protection leading to repairs; under receivership tenants typically deposit rent with a court‑appointed administrator whose funds are used for repairs.
- Property owners/landlords: Face a statutory mandate for receivership where severe or recurrent violations are found unless an acceptable remediation plan is approved.
- Mortgageholders, lienholders, and qualified entities: May be appointed as receivers and could advance funds that become part of mortgage/lien balances.
- Courts and local housing/code enforcement: Have clarified duties and procedures for receivership cases.
Procedural/timeline aspects
- Effective immediately upon enactment.
- Legislative status (from provided actions): Introduced 6/3/2024; amended and not reported out of Assembly Housing Committee on 6/13/2024; document shows referral to the Health Committee on 2/4/2025. Primary sponsor: Assemblymember Kwani O’Pharrow.
- Related bills: S‑3271 (companion), prior‑session bills S‑7097, A‑8004, A‑1859.
Overall impact
- The bill reduces judicial discretion by making receivership appointment mandatory when statutory thresholds are met, broadens the court’s evidentiary scope, and clarifies procedural protections and alternatives (owner remediation plans, bond requirements). It strengthens enforcement tools to remedy hazardous housing conditions while preserving limited opportunities for owner remediation.