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

This New Jersey bill codifies a tenant's right to use a landlord's failure to maintain habitable housing as a defense in eviction cases. It requires landlords to address habitability issues (like unsafe conditions) after receiving notice, and allows tenants who withheld rent due to such problems to reduce their rent obligation to the property's fair value during the defect. Courts must order inspections by code enforcement officials, then set rent reductions, repair timelines, and payment schedules if a habitability breach is proven. The bill directly affects residential tenants, landlords, and courts handling eviction cases involving unsafe living conditions.