Codifies and enhances use of breach of implied warranty of habitability as defense to certain eviction actions.

This bill (A5026) codifies and strengthens tenants' ability to use a landlord's failure to maintain habitable housing as a defense in eviction cases for non-payment of rent. It directly affects residential tenants in New Jersey who face eviction due to withheld rent caused by unsafe or unhealthy living conditions (e.g., lack of heat, plumbing, or structural issues). Key provisions require landlords to have prior notice of defects within 12 months before eviction, mandate court-ordered code enforcement inspections, and allow rent reductions to the property’s fair value during defects - plus credits for tenant-repaired issues - until repairs are made. The court also establishes payment schedules, specifies required repairs, and may require landlords to deposit housing subsidies into court for urgent repairs, while voiding any tenant agreements that waive these protections.