N.J. Stat. Ann. § 2A:18-51 et seq. § 2A:18-61.1h
Reimbursement to displaced tenant
Operative Text
4. a. If a residential tenant is displaced because of an illegal occupancy in a residential rental premises pursuant to paragraph (3) of subsection g. of section 2 of P.L.1974, c.49 (C.2A:18-61.1) and the municipality in which the rental premises is located has not enacted an ordinance pursuant to section 3 of P.L.1993, c.342 (C.2A:18-61.1g), the displaced residential tenant shall be entitled to reimbursement for relocation expenses from the owner in an amount equal to six times the monthly rental paid by the displaced person. b. Payment by the owner shall be due five days prior to the removal of the displaced tenant. If payment is not made within this time, interest shall accrue and be due to the displaced residential tenant on the unpaid balance at the rate of 18% per annum until the amount due and all interest accumulated thereon shall be paid in full. c. If reimbursement for which an owner is liable is not paid in full within 30 days of removal of the tenant, the unpaid balance thereof and all interest accruing thereon and, in addition thereto, an amount equal to six times the monthly rental paid by the displaced tenant shall be a lien upon the parcel of property on which the dwelling of the displaced residential tenant was located, for the benefit of that tenant. To perfect the lien, a statement showing the amount and due date of the unpaid balance and identifying the parcel shall be recorded with the county clerk or registrar of deeds and mortgages of the county in which the affected property is located, and upon recording, the lien shall have the priority of a mortgage lien. Identification of the parcel by reference to its designation on the tax map of the municipality shall be sufficient for purposes of recording. Whenever the unpaid balance and all interest accrued thereon has been fully paid, the displaced residential tenant shall promptly withdraw or cancel the statement, in writing, at the place of recording. d. This section shall not authorize the enforcement of a lien for actual reasonable moving expenses with respect to any real property the title to which has been acquired by a municipality and which has been transferred pursuant to a rehabilitation agreement. e. For the purposes of this section, the owner of a structure shall exclude mortgagees in possession of a structure through foreclosure. L.1993,c.342,s.4.
Under N.J.S.A. 2A:18-51 et seq. § 2A:18-61.1h, when a residential tenant is displaced due to an illegal occupancy and the local municipality has not enacted its own relocation ordinance, the property owner is required to reimburse the displaced tenant an amount equal to six times the monthly rent. Payment must be made at least five days before the tenant's removal, and if it is not, interest accrues at 18% per annum on the unpaid balance. If the full reimbursement remains unpaid 30 days after removal, the tenant may perfect a lien on the property—carrying mortgage-lien priority—for the unpaid balance, accrued interest, and an additional amount equal to six times the monthly rent.
Plain English — not legal advice.
Property owners subject to N.J.S.A. 2A:18-51 et seq. § 2A:18-61.1h should be aware that displacing a tenant due to an illegal occupancy triggers a mandatory reimbursement obligation equal to six times the displaced tenant's monthly rent, due no later than five days before the tenant's removal. Operators who miss that deadline face an 18% annual interest charge on the unpaid balance, and failure to pay in full within 30 days of removal exposes the property to a recordable lien with mortgage-lien priority. Compliant owners typically ensure that relocation funds are calculated, documented, and delivered on time to avoid these compounding financial consequences.
General guidance for property managers — not legal advice for your specific situation. Consult an attorney for advice on your case.
N.J.S.A. 2A:18-51 et seq. § 2A:18-61.1h establishes that a tenant displaced because of an illegal occupancy—in a municipality without its own relocation ordinance—has a right to receive six times their monthly rent as a relocation reimbursement from the property owner. If the owner does not pay at least five days before removal, interest at 18% per year begins accruing, and if the balance remains unpaid 30 days after removal, the tenant may record a lien against the property with the county clerk or registrar of deeds. Tenants who believe these rights have been violated may wish to consult a tenant-rights organization or legal aid office to understand the options available, including lien perfection and interest recovery.
General guidance for tenants — not legal advice for your specific situation. Consult a tenant-rights organization or attorney for advice on your case.
Generated October 6, 2026 — auto-generated, not yet human-reviewed. See /transparency for methodology.
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