N.J. Stat. Ann. § 55:17-1 et seq. § 55:17-10
Liberal construction
Operative Text
The provisions of this act shall be liberally construed in order that holders of mortgage loans on projects may rely, in the event of a default of foreclosure, upon the continuation of terms and provisions of the lease or financial arrangements evaluated at the time of the making of the loan to determine its financial feasibility, and in case of any conflict between the provisions of any statute authorizing such leases or financial arrangements and the provisions of this act, this act shall prevail. L.1967, c. 304, s. 10, eff. Feb. 15, 1968.
Section 55:17-10 of New Jersey's N.J.S.A. 55:17-1 et seq. establishes that the entire act is to be read broadly and favorably, particularly to protect mortgage lenders who rely on the stability of lease terms and financial arrangements when evaluating a housing project loan. If a borrower defaults or a foreclosure occurs, the lease terms and financial conditions that existed at the time the loan was made are meant to remain in force. Where this act conflicts with any other statute governing such leases or financial arrangements, § 55:17-10 directs that this act takes precedence.
Plain English — not legal advice.
Property owners and managers overseeing projects financed under N.J.S.A. 55:17-1 et seq. should be aware that § 55:17-10 requires courts and agencies to interpret the act liberally in favor of preserving the financial and lease terms that were in place when a mortgage loan was originated. Compliant operators generally maintain clear documentation of the lease terms and financial arrangements that existed at the time of loan origination, since those terms carry legal weight in the event of a default or foreclosure. When conflicts arise between this act and other statutes authorizing leases or financial arrangements, this act's provisions are designed to govern.
General guidance for property managers — not legal advice for your specific situation. Consult an attorney for advice on your case.
For tenants living in projects subject to N.J.S.A. 55:17-1 et seq., § 55:17-10 provides a meaningful protection: the lease terms and financial arrangements in place when the project's mortgage was made are intended to continue even if the property goes into default or foreclosure. This liberal-construction mandate means that tenants may be able to raise the stability of their original lease terms as a relevant factor if a dispute arises during or after foreclosure proceedings. Tenants who believe their lease rights are being altered in connection with a foreclosure may wish to consult a tenant-rights organization or legal aid provider familiar with New Jersey housing law for general information about available options.
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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