TRENTON – In an effort to require more transparency from landlords and property owners, the Senate Community and Urban Affairs Committee advanced legislation today sponsored by Senator Brian Stack that would require a limited liability company (LLC) or foreign LLC to disclose information of each beneficial owner for service of process of the LLC.
“The shield of anonymity afforded to LLCs can present significant challenges for tenants. It can make it more difficult for a tenant to understand who is responsible for services like building repairs or maintenance,” said Senator Stack (D-Hudson). “By providing reliable contact information, tenants will be better equipped to advocate for themselves and landlords will be held more accountable.”
Under the bill, S-276, LLCs or a foreign LLC that is the grantee of a deed for residential property would need to disclose the following information of each beneficial owner: (1) full legal name; (2) date of birth; (3) current business street address; and (4) a unique identifying number from an acceptable identification document. This information would be submitted for recording, together with the deed.
The bill would also permit a municipality to direct, by ordinance, that charges issued to LLCs pursuant to housing code, building code, or health code will become a lien on the property if the charge remains unpaid on the first day of the thirteenth month they are owed.
The bill advanced out of committee in a unanimous vote.