N.J. Stat. Ann. § 55:17-1 et seq. § 55:17-7
Notice of default to holder
Operative Text
In the event of any default in connection with the terms and provisions of any lease or financial arrangement affecting a project, the governmental body or agency shall not take any steps it may otherwise be entitled to take, until it has first notified the holder of any mortgage loan thereon and provided a reasonable opportunity, in light of the nature of the default and the available means to correct it to cure the same; but in any case shall allow not less than 30 days for such purpose. L.1967, c. 304, s. 7, eff. Feb. 15, 1968.
Under N.J.S.A. 55:17-7, when a default occurs in connection with a lease or financial arrangement tied to a qualifying housing project, the relevant governmental body or agency is required to pause before taking any enforcement action it might otherwise be authorized to pursue. Before acting, the government must first notify the mortgage loan holder and give that holder a reasonable opportunity to cure the default — with a guaranteed minimum window of at least 30 days, regardless of the nature of the default. This provision is designed to protect lenders' interests by ensuring they have advance notice and a meaningful chance to remedy problems before government action proceeds.
Plain English — not legal advice.
Property owners and managers involved in government-assisted or government-regulated housing projects under N.J.S.A. 55:17-7 should be aware that any default — whether related to lease terms or financial arrangements — triggers a mandatory notification process directed at the mortgage holder. Compliant operators generally maintain clear records of their mortgage holders' contact information so that the governmental body can fulfill its notice obligation without delay. Understanding this provision can help operators anticipate the timeline of any government response to a default situation, since the cure period is at minimum 30 days.
General guidance for property managers — not legal advice for your specific situation. Consult an attorney for advice on your case.
Tenants living in housing projects subject to N.J.S.A. 55:17-7 should know that this provision primarily governs the relationship between the governmental body and the mortgage loan holder when a default arises — it establishes a mandatory notice and cure period before the government can take action. While this rule does not directly create tenant rights, it does shape the timeline of any government enforcement process, which may affect housing stability in a project. Tenants who have concerns about a default situation affecting their housing may wish to contact a local tenant-rights organization or legal aid office to understand how this provision interacts with other protections available to them.
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.
Effective Timeline
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