Establishes Statewide limitation on rent increases.

This bill establishes a statewide limit on annual rent increases for most residential properties in New Jersey, capping increases at 5% plus the inflation rate or 10% - whichever is lower - based on the previous year's lowest rent. It directly affects renters and landlords in covered properties, excluding affordable housing units, new construction (within 15 years), dormitories, single-family homes meeting specific criteria, and duplexes where the landlord resides. The law applies retroactively to rent increases since February 1, 2022, and allows tenants to use violations as a defense in eviction cases or seek court termination of leases with illegal rent hikes. Local rent control laws that impose stricter limits remain in effect, but this bill preempts local rules that permit higher increases.