A Tenant’s Right to Relocation Expenses for an Illegal Occupancy in New Jersey

A tenant living in an illegal apartment in New Jersey may be entitled to significant relocation expenses if the landlord tries to evict them because of the illegal occupancy.

Eviction for Illegal Occupancy

New Jersey law, specifically N.J.S.A 2A:18-61.1g(3), permits a landlord to evict a tenant when they need to "correct an illegal occupancy because he has been cited by local or State housing inspectors or zoning officers and it is unfeasible to correct such illegal occupancy without removing the tenant.”

This situation is most common when an owner of a one or two-family home rents out a basement or attic as a separate apartment, violating local zoning laws. If a landlord is cited by inspectors, they must file a formal complaint in the Superior Court's landlord-tenant division to legally remove the tenant. A landlord cannot simply lock the tenant out without a court order.

The Right to Relocation Assistance

Crucially, before a landlord can evict a tenant for this reason, they must pay the tenant relocation expenses equivalent to six months’ rent. This payment must be made at least five days before a court-ordered lockout.

Furthermore, the New Jersey Supreme Court case of Miah v. Ahmed, 179 N.J. 511 (2004), established a critical protection: this relocation payment cannot be offset by any back rent the landlord claims is owed. Even if the landlord initially files for eviction based on non-payment of rent, a tenant who discovers the apartment is illegal can raise this as a defense. If the illegality is proven, the tenant is still entitled to the full relocation expenses before being locked out.

The landlord must sue the tenant in a separate civil action to recover any rent they claim is due. The relocation benefit cannot be used as leverage or reduced by claims of unpaid rent in the eviction proceeding.