N.J. Stat. Ann. § 55:13A-1 et seq. § 55:13A-26.1
Deposit of 50% of penalty moneys in Revolving Housing Development and Demonstration Grant Fund
Operative Text
Fifty percent of all penalty moneys collected by the commissioner pursuant to section 19 of P.L.1967, c.76 (C.55:13A-19) shall be deposited in the Revolving Housing Development and Demonstration Grant fund established by section 5 of P.L.1967, c.82 (C.52:27D-63). L.1991,c.179,s.2.
Under N.J.S.A. 55:13A-26.1, when the commissioner collects penalty money under the hotel and multiple dwelling enforcement statute (section 19 of P.L.1967, c.76), half of those collected funds must be directed into the Revolving Housing Development and Demonstration Grant Fund rather than flowing into the general treasury. This provision establishes a dedicated funding mechanism that channels enforcement revenue toward housing development and demonstration programs. The rule governs how penalty proceeds are allocated at the state level, not how penalties are assessed or imposed.
Plain English — not legal advice.
For property owners and managers subject to New Jersey's hotel and multiple dwelling law, N.J.S.A. 55:13A-26.1 is a fiscal allocation rule rather than a direct compliance obligation. Compliant operators generally focus on avoiding the underlying violations that generate penalties under section 19 of P.L.1967, c.76, since any penalties assessed flow partly into the Revolving Housing Development and Demonstration Grant Fund. Understanding that penalty revenue is earmarked for housing programs underscores the state's broader interest in using enforcement proceeds to support housing quality initiatives.
General guidance for property managers — not legal advice for your specific situation. Consult an attorney for advice on your case.
N.J.S.A. 55:13A-26.1 reflects the state's policy of reinvesting a portion of housing-code enforcement penalties into the Revolving Housing Development and Demonstration Grant Fund, which supports housing development programs that can benefit renters broadly. While this provision does not create direct tenant rights or remedies, it illustrates that penalties collected from landlords under the hotel and multiple dwelling law serve a public housing purpose. Tenants who believe violations exist in their building may wish to contact a tenant-rights organization or the relevant state agency to learn about complaint processes under the underlying enforcement statute.
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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