Bicameral legislation would give displaced tenants first right to return to newly redeveloped buildings at a limited rent increase
TRENTON, N.J. — Senator Britnee Timberlake (D-Essex) and Assemblyman Kenyatta Stewart (D-Bergen, Passaic) introduced legislation to protect residential tenants displaced when their apartment buildings are demolished for private redevelopment in order to give those residents a right of first refusal to return to a comparable unit in the newly constructed building.

The legislation, A5581/S4749, would require a private developer demolishing a multiple dwelling for a redevelopment project to offer each displaced residential tenant the opportunity to lease a comparable unit in the newly redeveloped building at a rent no more than 10 percent higher than under the tenant's previous lease. The right of first refusal would apply before the unit is offered to the general public.

“Redevelopment should not come at the cost of displacing the very residents who helped make a community worth investing in. When a private developer tears down someone’s home to build a new apartment building, that tenant should have a meaningful opportunity to come back and remain part of the community they called home,” said Senator Timberlake. “This bill gives displaced tenants a fair shot at returning to a comparable home in the newly developed building at a reasonable rent, while providing advance notice and protections against unreasonable rent increases. We can support new housing and investment while also recognizing that longtime residents deserve a place in the future of their own neighborhoods. That is what responsible redevelopment looks like.”

Under the legislation, developers would be required to provide displaced tenants with 90 days' written notice of the anticipated completion of the newly constructed building. At least 60 days before completion, tenants would receive a written lease offer for a comparable unit and would have at least 30 days to accept or decline the offer.

“We should be able to welcome new development without telling existing residents that they no longer have a place in the future of their own neighborhood,” said Assemblyman Stewart. “This legislation strikes an important balance: it allows communities to grow and new housing to be built, while giving displaced tenants a fair opportunity to return to their homes and remain part of the communities they helped build.”

The legislation would also provide protections for tenants who return to the redeveloped property. If the tenant renews the lease, subsequent rent increases would be limited according to the applicable municipal rent-control ordinance. If the municipality does not have a rent-control ordinance, the bill provides for the rent-control ordinance of the nearest municipality that has one, until the municipality where the property is located adopts its own ordinance.

The full text of the bill can be found here.