Gov. Mikie Sherrill signed into law the Forbidding the Algorithmic Inflation of Rent (FAIR) Act this week, which restricts the use of rental pricing algorithms. A3497 (Lopez) addressed the use of algorithmic rent-setting software and coordinated pricing practices, which impacts housing costs by pooling non-public data to analyze market trends and recommend rental prices that tend to be higher. The New Jersey State Bar Association monitored this bill but did not take a position on it.
“As these algorithms increase in popularity, they contribute to an increasingly unaffordable housing market, placing undue financial strain on renters and exacerbating the housing crisis in New Jersey,” said the bill’s sponsor, Assemblywoman Yvonne Lopez. “This bill is a vital tool in stopping corporations from using big data to hike up housing and rental costs.”
Key elements of the law make it unlawful for:
- A rental property owner, or any agent, and the like from receiving or otherwise exchange any form of consideration in return for the use of the services of a coordinator, which is any person who operates algorithmic revenue management software or device;
- A coordinator to facilitate a tacit or express agreement among rental property owners that restricts competition with respect to residential dwelling units, including by performing a coordinating function;
- Two or more persons to engage in parallel pricing coordination;
- Any agent or representative of a coordinator or subcontractor thereof to engage in parallel pricing coordination; or
- Any person to perform a coordinating function.
The law is touted as ensuring the housing market is fair and competitive, Sherrill said. “Housing affordability is one of the defining challenges facing New Jersey, and we’re using every tool available to bring costs down,” Sherrill said, pointing out that this is only one piece of a “whole-of-government approach to addressing our housing crisis.”
A year ago, the state’s Attorney General’s Office filed a lawsuit against RealPage, a software company that provides algorithmic-type rent pricing. The state argued that the software was used to inflate rents in violation of antitrust and consumer protection laws. The lawsuit is still ongoing.
The FAIR Act goes into effect in July 2027.
Newly Enacted Power NJ Act Creates Procurement Process for New Nuclear Energy
Sherrill signed into law the Power NJ Act, which launches a procurement process by the New Jersey Board of Public Utilities and the New Jersey Economic Development Authority to evaluate proposals for new nuclear energy. A4881 (DeAngelo)/S4296 (Burzichelli) was designed to address what the bill sponsors characterized as an “inadequate supply of energy” that contributed to the spike in energy prices.
“One of the more effective ways of countering higher utility bills is the expansion of sources of power,” Sen. John Burzichelli said. “Giving serious consideration to additional supplies of nuclear power would serve our energy needs. Advanced nuclear power is clean, reliable and strengthens our long-term energy security.”
The new law would allow developers 60 days to submit proposals with regulatory, environmental, financial and workforce information, which will be reviewed by the NJBPU for provisional qualification or denial. There is a 12-month negotiation period following provisional qualification and then a Final Board Order if the project is found to provide a net benefit to ratepayers, costs are not unreasonable or excessive in light of customers’ overall bills and the developer has secured federal financing.
The law is effective immediately and the NJBPU has until Jan. 9, 2027 to open requests for expressions of interest from developers.