NJ A5026

Codifies the implied warranty of habitability in all residential leases, requiring landlords to maintain premises fit for human habitation and free from dangerous conditions threatening tenants' health or safety

Allows tenants to assert breach of habitability as a defense in eviction proceedings for non-payment of rent, with rent reduced to the reasonable value of the property in its defective condition, retroactive up to 12 months

Requires court-ordered inspections by code enforcement officials when tenants raise habitability defenses, with reports identifying violations and health/safety threats shared with tenants, the public, and state agencies

Eliminates requirement for tenants to deposit withheld rent with the court upfront when asserting habitability defenses; deposits only required after court determines a breach occurred

Empowers courts to compel landlords to deposit state or federal housing subsidies with the court, with funds disbursed solely for maintaining utilities and completing necessary repairs to remedy violations