Codifies and enhances use of breach of implied warranty of habitability as defense to certain eviction actions.

This New Jersey bill (S 280) strengthens tenants' rights by allowing them to use unsafe living conditions as a defense in eviction cases for non-payment of rent. It requires landlords to maintain habitable housing, and if conditions violate safety standards (after the tenant notifies them), tenants can reduce rent to the property's value in its defective state and offset repair costs they paid. The law mandates court-ordered inspections by code enforcement officials to verify violations before eviction hearings, and courts must order landlords to fix issues while establishing payment plans for remaining rent. It directly affects residential tenants and landlords statewide, ensuring courts enforce habitability standards without requiring tenants to pay withheld rent to the court.