Cal. Civ. Code § 5:11-8.5
Recovery of relocation assistance costs
Operative Text
(a) Any displacing agency that receives a State grant-in-aid shall, as a condition of the receipt of that grant-in-aid, prosecute in a civil or criminal penalty action any real property owner who is or might be, in the judgment of either the displacing agency or the Department, responsible for any housing or construction code violations that resulted in displacement and consequent eligibility for relocation assistance. (b) Once there has been a final court adjudication in any civil or criminal penalty action brought under (a) above and paragraph (a) of section 1 of P.L. 1983, c.536 (N.J.S.A. 20:4-4.1), and once the relocation assistance costs have been determined, the displacing agency shall promptly present a statement of relocation costs, indicating the date by which payment must be made, to the real property owner. (c) In the event that payment is not made by the real property owner within 10 days of the date on which payment is due, interest on the unpaid balance shall accrue at the annual rate of 18 percent, pursuant to paragraph (b) of section 1 of P.L. 1983, c.536 (N.J.S.A. 20:4-4.1) and the displacing agency shall prepare and file a lien statement pursuant to paragraph (c) of said section 1 of P.L. 1983, c.536. The displacing agency shall assign to the Department an interest in the lien that is equal to the unrepaid amount of the grant-in-aid, plus accrued interest thereon. The displacing agency shall assist the Department, as may be required, in any foreclosure, by the Department, of the lien. (d) The displacing agency shall pay to the Department, out of any funds recovered by it from the real property owner, a proportion of such recovered funds that is the same as the proportion of the total relocation assistance resulting from code enforcement at that owner's property that was paid by the Department. (e) In the event that the displacing agency does not elect to bring a civil action to recover relocation assistance costs, pursuant to section 1 of P.L. 1984, c.30 (N.J.S.A. 20:4-4.2), the displacing agency shall, at the request of the Department, assign its right to recovery of such funds to the Department. In the event of any recovery in any such case, the Department shall repay to the displacing agency a proportion of the recovered funds, exclusive of attorneys' fees and costs, that is the same as the proportion of the relocation assistance that was paid by the displacing agency from its own funds.
N.J.A.C. § 5:11-8.5 establishes a cost-recovery framework that applies when a displacing agency receives State grant-in-aid and residents are displaced due to housing or construction code violations. Under this provision, the property owner whose code violations caused the displacement can be pursued through civil or criminal penalty action, and once a court reaches a final judgment, the owner is billed for the relocation assistance costs that were paid out. If the owner fails to pay within 10 days of the due date, an 18% annual interest rate begins accruing and a lien may be filed against the property, with the State Department retaining an interest in that lien proportional to its grant contribution.
Plain English — not legal advice.
Property owners subject to N.J.A.C. § 5:11-8.5 should be aware that housing or construction code violations that cause tenant displacement can trigger both civil or criminal penalty proceedings and a formal demand for reimbursement of relocation assistance costs. After a final court adjudication, a compliant property owner promptly responds to the statement of relocation costs presented by the displacing agency and pays within the stated deadline to avoid the 18% annual interest penalty and potential lien filing. Owners whose properties are subject to State grant-funded displacement actions should understand that both the displacing agency and the New Jersey Department of Community Affairs may hold an interest in any lien filed against the property.
General guidance for property managers — not legal advice for your specific situation. Consult an attorney for advice on your case.
N.J.A.C. § 5:11-8.5 is designed to protect the public funds used to pay relocation assistance when tenants are displaced due to a landlord's code violations, ensuring that the responsible property owner — not the government or displaced residents — ultimately bears those costs. Tenants who have received relocation assistance under this framework are not personally responsible for pursuing cost recovery; that obligation falls on the displacing agency and, in some circumstances, the State Department. Tenants who believe they were displaced as a result of code violations and may be entitled to relocation assistance can seek information from their local displacing agency or a tenant-rights organization familiar with New Jersey's Relocation Assistance Act.
General guidance for tenants — not legal advice for your specific situation. Consult a tenant-rights organization or attorney for advice on your case.
Generated November 3, 2026 — auto-generated, not yet human-reviewed. See /transparency for methodology.
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