N.J. Stat. Ann. § 2A:18-51 et seq. § 2A:18-61.48a
Prohibition of conversion of affordable rental housing unit to condominium, cooperative form of ownership
Operative Text
4. a. A qualified municipality may, by ordinance, prohibit the conversion of any affordable rental housing unit to a condominium or cooperative form of ownership. Upon the adoption of the ordinance to prohibit the conversion of affordable rental housing units, the prohibition shall remain in effect until such time as the governing body adopts a resolution to suspend the prohibition, as set forth in paragraph 3 of this subsection. An ordinance to prohibit the conversion of affordable rental housing units shall: (1) recognize a shortage of affordable rental housing within the municipality and the public need to prevent the loss of affordable rental housing units through conversions; (2) establish criteria to determine the minimum number of affordable rental housing units required in the municipality. The criteria may include, but not be limited to, the vacancy rate of affordable rental housing units, the proportion of affordable rental housing units to total housing units, the proportion of existing affordable housing units to condominium and cooperative units, or any other consideration that the governing body may deem appropriate; and (3) provide for the suspension of the prohibition, by resolution, upon finding that the criteria established pursuant to paragraph 2 of this subsection have been met. If after adopting a resolution to suspend the prohibition, the governing body of the qualified municipality finds that the criteria established pursuant to paragraph (2) of this subsection are no longer met, then the governing body may, by resolution, reinstate the prohibition. b. The governing body of a qualified municipality shall transmit any ordinance or resolution adopted pursuant to subsection a. of this section to the department within five days of adoption. c. Notwithstanding any other provision of law, rule, or regulation to the contrary, the department shall not approve an application for registration for the conversion of any affordable rental housing unit located in a qualified municipality during such time as the ordinance adopted pursuant to subsection a. of this section remains in effect. d. Notwithstanding any other provision of law, rule, or regulation to the contrary, any application for registration of conversion, notice of intention to convert, full plan of conversion, public offering statement, or other required documentation submitted pursuant to any law or regulation, including but not limited to, P.L.1991, c.509 (C.2A:18-61.40 et al.), P.L.1981, c.226 (C.2A:18-61.22 et al.), P.L.1974, c.49 (C.2A:18-61.1 et al.), or P.L.1977, c.419 (C.45:22A-21 et seq.), and that is associated with the conversion of any affordable rental housing unit located in a qualified municipality, shall be deemed null and void if submitted to the department, designated administrative agency, or tenant during such time as the ordinance adopted pursuant to subsection a. of this section remains in effect. L.2020, c.40, s.4.
Under N.J.S.A. 2A:18-61.48a, a qualifying New Jersey municipality may pass a local ordinance that blocks the conversion of affordable rental housing units into condominiums or cooperatives. When such an ordinance is in effect, the state department cannot approve any conversion registration application, and any conversion-related filings—including notices of intent, full plans, or public offering statements—are automatically void. The prohibition stays in place until the governing body formally suspends it by resolution after finding that locally established housing-supply criteria have been satisfied.
Plain English — not legal advice.
Property owners and managers operating affordable rental units in a qualified municipality should be aware that N.J.S.A. 2A:18-61.48a may render any conversion application, notice, or documentation null and void if a local anti-conversion ordinance is currently in effect. Compliant operators generally verify the status of any applicable municipal ordinance before initiating conversion proceedings, since state-level registration approval is unavailable while such an ordinance remains active. Monitoring the municipality's governing body for any resolutions suspending or reinstating the prohibition is a standard part of tracking conversion eligibility under this provision.
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:18-61.48a gives tenants in qualifying municipalities a meaningful protection: if their local government has enacted an anti-conversion ordinance, any conversion-related documents served on them—such as a notice of intention to convert or a public offering statement—are legally void for the duration of that ordinance. Tenants who receive such documents while an ordinance is in effect may wish to check with their municipality's governing body or a tenant-rights organization to confirm the ordinance's current status. General enforcement paths include raising the ordinance's protections as a defense in any conversion-related proceeding or filing a concern with the relevant designated administrative agency referenced in this provision.
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 14, 2026 — auto-generated, not yet human-reviewed. See /transparency for methodology.
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