N.J. Stat. Ann. § 55:17-1 et seq. § 55:17-4
Establishment and maintenance of financial records and data
Operative Text
The financial records and data in respect to the administration of the project after default or foreclosure shall be so established and maintained as to permit the application of the terms of the lease or financial arrangement in respect to the calculation of payments to be made to a governmental body or agency, as well as of limitations upon profits, earnings, dividends and the like, separately and apart from the business operations of the holder of the mortgage loans arising from other transactions than the project itself. L.1967, c. 304, s. 4, eff. Feb. 15, 1968.
Under N.J.S.A. 55:17-1 et seq. § 55:17-4, when a housing project has gone through default or foreclosure, the financial records and data related to that project must be kept in a way that allows lease terms and financial arrangements to be applied separately from the mortgage holder's other business activities. This means that calculations for payments owed to government bodies, as well as any limits on profits, earnings, or dividends, can be tracked and verified on a project-specific basis. The rule ensures that the project's finances remain transparent and distinct, regardless of the broader financial operations of the entity holding the mortgage.
Plain English — not legal advice.
Operators and mortgage holders managing a project subject to N.J.S.A. 55:17-1 et seq. § 55:17-4 generally maintain separate books and records dedicated solely to the project following a default or foreclosure event. Compliant operators structure their accounting systems so that government payment obligations and any profit or dividend limitations tied to the project can be calculated independently from unrelated business transactions. Keeping clear, project-specific financial documentation helps demonstrate that lease terms and financial arrangements are being applied correctly.
General guidance for property managers — not legal advice for your specific situation. Consult an attorney for advice on your case.
N.J.S.A. 55:17-1 et seq. § 55:17-4 establishes that tenants living in a project that has undergone default or foreclosure benefit from a requirement that the project's finances be tracked separately from the mortgage holder's other dealings. This separation is designed to ensure that any limits on profits or earnings tied to the project—which may affect rent levels or payment structures—can be independently verified. Tenants who have concerns about whether these financial record-keeping requirements are being followed may wish to consult a tenant-rights organization or seek guidance from a New Jersey housing agency familiar with 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 6, 2026 — auto-generated, not yet human-reviewed. See /transparency for methodology.
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