N.J. Stat. Ann. § 55:17-1 et seq. § 55:17-1
Continuation of lease or financial arrangement on default or foreclosure of mortgage loan
Operative Text
Any lease or financial arrangement made by any governmental body or agency of this State pursuant to statute in connection with a project for redevelopment, renewal or rehabilitation shall continue in full force and effect beyond any default in or foreclosure of any mortgage loan made to finance the project, as though such default or foreclosure had not occurred, subject to the provisions of this act. L.1967, c. 304, s. 1, eff. Feb. 15, 1968.
Under N.J.S.A. 55:17-1 et seq., any lease or financial arrangement that a New Jersey governmental body or agency has entered into in connection with a redevelopment, renewal, or rehabilitation project remains legally valid and enforceable even if the underlying mortgage loan on that project goes into default or is foreclosed upon. In other words, the foreclosure event itself does not automatically terminate or void those government-backed leases or financial arrangements. The provision treats the situation as though the default or foreclosure never happened, subject to other requirements within the same act.
Plain English — not legal advice.
Property owners and managers involved in government-sponsored redevelopment, renewal, or rehabilitation projects in New Jersey should be aware that under N.J.S.A. 55:17-1 et seq., leases or financial arrangements established by a governmental body in connection with such projects survive mortgage default or foreclosure. A compliant operator generally maintains the terms of those arrangements without treating a foreclosure event as grounds for termination or modification. Operators navigating a default or foreclosure scenario on a project covered by this statute typically review the full scope of N.J.S.A. 55:17-1 et seq. to understand all applicable conditions.
General guidance for property managers — not legal advice for your specific situation. Consult an attorney for advice on your case.
Tenants residing in New Jersey redevelopment, renewal, or rehabilitation projects covered by N.J.S.A. 55:17-1 et seq. have a statutory basis to expect that their government-backed lease or financial arrangement remains in effect even if the project's mortgage goes into default or foreclosure. This provision means a foreclosing lender or new owner generally cannot use the foreclosure itself as a reason to terminate such a lease. Tenants who believe their housing arrangement is being improperly disrupted following a foreclosure may consider contacting a tenant-rights organization or the New Jersey Department of Community Affairs for general information about their situation.
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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