Ruiz, Turner Bill to extend liability of certain LLCs when acting as owners’ authorization committee

Ruiz, Turner Bill to extend liability of certain LLCs when acting as owners’ authorization committee

Trenton– Legislation sponsored by Senate Majority Leader Teresa Ruiz and Senator Shirley Turner that would expand the liability of certain business entities when they act as residential landlords, today authorized the Senate Committee on community and urban affairs.

“Unfortunately, there are bad actors in the state who hide behind LLCs to avoid taking responsibility for the conditions of the buildings they manage. To the detriment of residents and neighborhoods, they can circumvent the forces of l order and refuse to do much-needed renovations,” said Sen. Ruiz, D-Essex. “By closing this loophole, we can hold bad actors accountable and improve living conditions for renters across the state.”

The bill, S-523, would allow a court to hold a corporation, LLC, or other business entity liable for charges related to housing codes, building codes, or health codes. . It would also allow the courts to hold them accountable for costs related to the Hotels and Multiple Accommodations Act.

“Safe, secure and decent housing shouldn’t be a luxury, but for many tenants, especially those in urban areas, they live in dire conditions because landlords neglect their properties and hide behind a corporate veil. to avoid their responsibilities to maintain their properties,” said Sen. Shirley K. Turner (D-Mercer/Hunterdon). “Making the landlord registration process more transparent will provide our municipalities with the tools they need to not only protect tenants, but also to eliminate the existing scourge and prevent other scourges in our communities.

When registering as an owner, the bill would require individuals organized like any other legal or business entity to submit the name and address of a registered agent. In addition, an owner organized as an LLC or any other legal or business entity would be required to submit the names and addresses of members of the LLC who own at least a 10% interest in the business, as well as officers and directors. in the case of a legal person, when registering as owner.

The entity could be held liable if it had been informed of the charges and at least three charges remained unpaid for 13 months after their due date.

The bill was released from committee by a vote of 3-2.

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