N.J. Stat. Ann. § 55:17-1 et seq. § 55:17-3
Project and financial records equivalent to person or entity entering into lease or financial arrangement for continuation purposes; administration of project arrangements; summary proceedings
Operative Text
The project and the financial records herein provided for shall be considered to be equivalent to the person or entity entering into the lease or financial arrangement for all purposes of any applicable statute, including qualification and status under any such statute for the purpose of continuing such lease or financial arrangement beyond default or foreclosure. The holder of the mortgage loan and the governmental body or agency involved may enter into appropriate agreements to deal with administration of the project arrangements pursuant to this act; and in case of their inability to reach agreement on any one or more aspects thereof, either may apply to the Superior Court, Chancery Division, by a summary proceeding, to settle and resolve the details of such administration in such fashion as will tend to accomplish the purposes of this act. L.1967, c. 304, s. 3, eff. Feb. 15, 1968.
Under N.J.S.A. 55:17-3, the project itself and its associated financial records are treated as legally equivalent to the party that originally entered into a lease or financial arrangement, meaning that qualifying status under applicable statutes can be maintained even through events like default or foreclosure. The mortgage holder and the relevant governmental body or agency are authorized to negotiate agreements about how the project's arrangements will be administered. If those parties cannot reach agreement on any aspect of administration, either one may bring a summary proceeding in the Superior Court, Chancery Division, to have the court resolve the disputed details in a way that advances the law's purposes.
Plain English — not legal advice.
Property owners and mortgage holders operating under N.J.S.A. 55:17-3 should be aware that the project's records and financial structure carry legal standing equivalent to the original contracting party, which can allow leases and financial arrangements to continue even after a default or foreclosure event. Compliant operators generally work cooperatively with the relevant governmental body or agency to establish clear administrative agreements covering how project arrangements will be managed going forward. When agreement cannot be reached on one or more administrative points, the statute provides a defined legal pathway — a summary proceeding in the Superior Court, Chancery Division — to resolve those disputes without prolonged litigation.
General guidance for property managers — not legal advice for your specific situation. Consult an attorney for advice on your case.
N.J.S.A. 55:17-3 provides a protection relevant to tenants in projects subject to this law: the project's legal and financial records are treated as equivalent to the original contracting party, which means that qualifying leases may be able to continue even if the property goes through default or foreclosure. Tenants in such projects may benefit from knowing that the governmental body or agency involved has authority to negotiate administrative arrangements with the mortgage holder, and that unresolved disputes can be brought before the Superior Court, Chancery Division, through a summary proceeding. Tenants who believe their housing situation is affected by a default or foreclosure under this provision may wish to consult a tenant-rights organization or legal aid service familiar with New Jersey housing law for general information about how these protections apply.
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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