NJ A3289

Annual rent increases for residential properties would be capped at 5% plus the Consumer Price Index inflation rate, or 10% maximum, whichever is lower, based on the lowest rent charged in the previous 12 months

Exemptions include newly constructed units (within 15 years), affordable housing units, college dormitories, single-family homes rented by individual landlords (not corporations or REITs), and owner-occupied duplexes

Local municipal rent control ordinances remain valid if they impose stricter limits than the state cap; the state law would preempt any local laws allowing higher rent increases

Violations constitute consumer fraud, subjecting landlords to penalties under the New Jersey Consumer Fraud Act, and tenants may use violations as a defense against eviction or petition to terminate their lease

The law applies retroactively to February 1, 2022, with rent increases exceeding the cap during that period required to be rolled back to compliant levels