Housing

This bill authorizes the New Jersey Housing and Mortgage Finance Agency to provide reimbursements to qualified counselors for offering pre-purchase homebuyer counseling services. By expanding the existing Foreclosure Mediation Assistance Program, the legislation aims to help potential homebuyers avoid future financial difficulties before they occur. The funding mechanism involves a dedicated state account that reimburses counselors for their work, which also continues to support pre-foreclosure and disaster-related assistance. This change applies to homeowners and renters who receive guidance from trained professionals to prevent mortgage delinquency and foreclosure.

This bill clarifies that a "mortgage loan" refers specifically to loans made primarily for personal, family, or household purposes, secured by residential properties (1-6 dwelling units). It directly affects homebuyers and renters with standard mortgages by exempting these loans from prepayment penalties, meaning borrowers can pay off their loans early without extra fees. The key mechanism updates the legal definition to ensure consumer loans (not commercial ones) cannot include prepayment penalties, while allowing such fees for commercial mortgage loans. This applies to all new mortgage loans entered into after the bill's effective date.

This bill (A2127) prohibits electric and gas public utilities in New Jersey from charging residential tenants in multi-unit dwellings (like apartments) a meter-reading fee that exceeds the actual cost of their electricity or gas usage for a billing cycle. It specifically targets fees charged to customers who have opted out of smart meter installation and require manual meter readings. The law sets a clear cap: utilities cannot charge more for manual readings than the customer’s regular utility usage cost. This applies directly to renters in shared housing who choose manual metering, ensuring fees align with actual consumption rather than arbitrary charges.

This bill establishes clear standards for courts to determine if a rent increase is "unconscionable" (extremely unfair), directly affecting landlords and tenants in New Jersey. Courts must consider factors like the rent amount, landlord expenses, comparable local rents (including HUD data), tenant bargaining power, and property condition, with landlords bearing the burden of proof. It also excludes certain eviction court records from public access - specifically dismissed cases and cases where possession was granted over seven years ago - while exempting rent-controlled properties or regulated housing programs. The law codifies existing court practices to provide consistent, objective criteria for rent disputes.