On Monday, February 1, 2010, the Appellate Division of the Superior Court of New Jersey (the “Appellate Division”) issued an opinion in Lake Valley Assocs., LLC v. Pemberton Township, Docket No. A-4040-07 upholding the validity of the landlord registration ordinance adopted by Pemberton Township, represented by GluckWalrath attorneys Andrew Bayer and David A. Clark. This landlord registration ordinance establishes comprehensive procedures for the registration and licensing of all rental properties within Pemberton Township. Lake Valley Associates, the owner of a 450 unit apartment complex, challenged the validity of Pemberton’s ordinance on both constitutional grounds and based upon the argument that the State’s Hotel and Multiple Dwelling Act already regulates rental properties and preempts municipal regulation of such properties.
The trial court found that Pemberton Township’s landlord registration ordinance was adopted for valid public purposes, did not violate the State or Federal Constitutions, and was not preempted by any New Jersey statutes. On appeal, the Appellate Division affirmed the trial court’s dismissal of Lake Valley Associates’ claims. In reaching this determination, the Appellate Division concluded that the Hotel and Multiple Dwelling Act specifically contemplates and allows municipal regulation of rental properties so long as such regulation is at least as stringent as State requirements. The Appellate Division also noted that the dismissal of Lake Valley Associates’ constitutional claims would not preclude a later challenge if the ordinance was enforced in a manner which, as applied, violated the constitution.
In summary, the Appellate Division’s opinion in this matter confirms that municipalities may regulate rental properties within their borders through the licensing and registration of such properties. For more information about this decision, please contact GluckWalrath.
The specifics of the ruling can be found in the written decision (pdf).