Establishes Statewide limitation on rent increases.

New Jersey Senate Bill S3658 establishes a statewide rent cap, limiting annual rent increases for most residential properties to 5% plus the cost-of-living change or 10%, whichever is lower. This directly affects most renters in the state, including those in apartments and multi-unit buildings, but excludes non-residential properties, affordable housing units, dormitories, newly constructed buildings (within 15 years), single-family homes meeting specific landlord criteria, and duplexes where the landlord resides. Landlords violating the cap would face penalties under New Jersey’s consumer fraud law, and tenants could challenge unlawful increases or use violations as a defense in eviction cases. The bill applies retroactively to rent increases since September 1, 2024, and does not override stricter local rent control ordinances.