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New Jersey Legislature· A3497Approved by the Governor; P.L.2026, c.43

Establishes "Forbidding the Algorithmic Inflation of Rent (FAIR) Act." *, the official text

Shown verbatim: the complete text as captured from the official page posted by the New Jersey Legislature, fetched 2026-08-28. Where this bill amends existing law, language marked for deletion in the official page appears here in brackets. This is the introduced version. The official bill page.
ASSEMBLY, No. 3497

STATE OF NEW JERSEY

222nd LEGISLATURE

PRE-FILED FOR INTRODUCTION IN THE 2026 SESSION

Sponsored by:

Assemblywoman YVONNE LOPEZ

District 19 (Middlesex)

Assemblywoman MARGIE DONLON, M.D.

District 11 (Monmouth)

Assemblyman  CHIGOZIE U. ONYEMA

District 28 (Essex and Union)

Co-Sponsored by:

Assemblywoman Peterpaul, Assemblyman Sampson and
Assemblywoman Brennan

SYNOPSIS

Prohibits certain coordination among residential
rental property owners who restrict competition with respect to residential
dwelling units.

CURRENT VERSION OF TEXT

Introduced Pending Technical Review by Legislative
Counsel.

An Act
concerning certain coordination in residential rental property pricing and
supplementing P.L.1970, c.73 (C.56:9-1 et seq.).

Be It
Enacted by the Senate and General Assembly of
the State of New Jersey:

1.    The Legislature finds
and declares that:

a.     New Jersey is in the
midst of an affordable housing crisis, as demonstrated by rental housing
industry data showing median rent for a three-bedroom apartment increasing by
35 percent in the State from 2021 through 2024 and a studio in a more urban
environment such as Hoboken increasing by 61 percent in the same timeframe.

b.    Data from the United
States Census Bureau indicates that over 50 percent of renters in New Jersey
are deemed “rent burdened,” which means an individual spends more than 30
percent of income on rent.

c.     Recent national data
indicates that landlords of residential rental housing use property management
software to collude and raise residential rental housing prices, which may have
contributed to recent increases in the State.

d.    Landlords engaging with
the software supply real-time prices and additional lease information to
companies managing the software, who proceed to use algorithms to fix rental
prices.  As a result, competition decreases and typically rental prices
increase.

e.     A leading property
management software company in the United States hinted at the outcome of using
its software by stating on its website that it enables landlords to “outperform
the market” by two to five percent, with a company executive publicly stating
that the software could be responsible for rent increases of up to 14.5
percent.

f.     New Jersey recognizes
housing as a basic human need and endeavors to expand access to affordable
housing.

2.
As used in this act:

“Consciously
parallel pricing coordination” means a tacit or express agreement between two
or more rental property owners that are not related by a business agreement or
contract to raise, lower, change, maintain, or manipulate pricing for the
purchase or sale of reasonably interchangeable products or services unless
required to do so in accordance with a rental cost restriction program.
Actions of a rental property owner related exclusively to multiple properties
controlled by the same property owner shall not be considered consciously
parallel pricing coordination.

“Coordinating
function” means between two or more property owners:

(1)
collecting nonpublic information;

(2)
analyzing or processing nonpublic information through use of a system,
software, algorithm, or other automated process; and

(3)
recommending rental prices, lease renewal terms, or ideal occupancy levels to a
rental property owner.

“Coordinator”
means any software, data analytics service, or entity that performs a
coordinating function for any rental property owner. “Coordinator” shall
not include a software, data analytics service, or entity that: (1) generates
or uses any report that provides rental data in an aggregated manner and does
not recommend rent prices, fees, occupancy rates, or other rental contract terms
for future leases; or (2) provides or uses rental data for the purpose of
conducting research, statistics, testing, or training for software development.
“Coordinator” shall not include a government entity that sets or limits rents
or sale prices in accordance with a rental price restriction program.

“Nonpublic
information” means information including but not limited to prices, supply
levels, security deposits, ideal occupancy levels, lease contract termination,
renewal dates of residential dwelling units or any other material lease terms
from two or more rental property owners that is less than 365 days old and is
not available for use or purchase by the public.

“Rental
price restriction program” means a program established to restrict rent on
persons of limited means, including but not limited to, the federal Housing
Choice Voucher (Section 8) Program, P.L.2004, c.140 (C.52:27D-287.1 et al.),
the “Fair Housing Act,” P.L.1985, c.222 (C.52:27D-301 et al.), any program
administered by the New Jersey Housing and Mortgage Finance Agency, a rent
control or rent levelling ordinance, or any other program established to limit
rent identified in the rules and regulations adopted pursuant to section 7 or
P.L.    , c.    (C.        ) (pending before the Legislature as this bill).

“Residential
dwelling unit” means any house, apartment, accessory unit, or other unit
intended to be used as a primary residence in the State.  “Residential dwelling
unit” shall not include inpatient medical care, licensed long-term care, or
detention or correctional facilities.

3.   It
shall be unlawful and a violation of the “New Jersey Antitrust Act,” P.L.1970,
c.73 (C.56:9-1 et seq.) for:

a.   a
rental property owner, or any agent, representative, or subcontractor thereof,
to subscribe to, contract with, or otherwise exchange any form of consideration
in return for the use of services of a coordinator;

b.   the
owner of a coordinator to facilitate an agreement among rental property owners
that restricts competition with respect to residential dwelling units,
including by performing a coordinating function; or

c.     two
or more rental property owners to engage in consciously parallel pricing
coordination.

4.    Sections 7 through 17 of
the “New Jersey Antitrust Act,” P.L.1970, c.73 (C.56:9-7 through 56:9-17) shall
apply for a violation pursuant to section 3 of this act.

5.
Nothing in P.L.    , c.    (C.        ) (pending before the Legislature as this
bill) shall apply to multiple listing services or their members.

6.    The Department of Law
and Public Safety, in conjunction with the Department of Community Affairs, shall
develop and undertake a public education program designed to inform the
citizens of this State of the provisions of this act.  A component of this
program shall include information posted on the website of each department
dedicated to the provisions of this act and the steps a consumer is to take if
the consumer suspects a violation of this act.

7.    The Attorney General and
the Commissioner of Community Affairs, pursuant to the “Administrative
Procedure Act,” P.L.1968, c.410 (C.52:14B-1 et seq.), shall adopt rules and
regulations to effectuate the purposes of this act.

8.    This act shall take
effect on the first day of the fourth month next following the date of
enactment.

STATEMENT

This bill prohibits the
facilitation of agreements among rental property owners who restrict
competition with respect to residential dwelling units.  Under the bill, it is
unlawful and a violation of the “New Jersey Antitrust Act” for: (1) a rental
property owner, or any agent, representative, or subcontractor thereof, to
subscribe to, contract with, or otherwise exchange any form of consideration in
return for the use of services of a coordinator; (2) the owner of a coordinator
to facilitate an agreement among rental property owners that restricts
competition with respect to residential dwelling units, including by performing
a coordinating function; and (3) two or more rental property owners to engage
in consciously parallel pricing coordination.  The bill provides that the
provisions of the bill would not apply to the actions of an owner of multiple
properties related exclusively to multiple properties controlled by the same
rental property owner or to multiple listing services or their members.

A “coordinator” is defined in
the bill to mean any software, data analytics service, or entity that performs
a coordinating function for any rental property owner, with certain
exceptions.  “Coordinating function” is defined to mean (1) collecting nonpublic
information; (2) analyzing or processing nonpublic information through use of a
system, software, algorithm, or other automated process; and (3) recommending
rental prices, lease renewal terms, or ideal occupancy levels to a rental
property owner.  “Nonpublic information” is defined as information including
but not limited to prices, supply levels, security deposits, ideal occupancy
levels, lease contract termination, renewal dates of residential dwelling units
or any other material lease terms from two or more rental property owners that
is less than 365 days old and is not available for use or purchase by the
public.  “Consciously parallel pricing coordination” is defined to mean a tacit
or express agreement between two or more rental property owners to raise,
lower, change, maintain, or manipulate pricing for the purchase or sale of
reasonably interchangeable products or services unless required to do so in
accordance with certain governmental rental price restriction programs.

The bill further stipulates
that current enforcement provisions of the New Jersey Antitrust Act will apply
to violations committed pursuant to this bill.

Lastly, the Department of Law
and Public Safety, in conjunction with the Department of Community Affairs, is
required to develop and undertake a public education program designed to inform
the citizens of this State of the provisions of the bill.  A component of this
program is to include information posted on the website of each department
dedicated to the provisions of the bill and the steps a consumer is to take if
the consumer suspects a violation.
Every fact on this page links to its source, starting with the official bill record.