Stack’s Transparency Bill Targets LLC Anonymity, Aims to Empower Tenants

A bill aimed at increasing transparency for tenants in properties owned by limited liability companies (LLCs) is making progress in New Jersey. Sponsored by Senator Brian Stack, who is also the Mayor of Union City, the bill was advanced by the Senate Community and Urban Affairs Committee.

The bill, known as S-276, targets the issue of anonymity often associated with LLCs. According to Senator Stack, this anonymity can be a hurdle for tenants, especially when they need to know who is responsible for building repairs or maintenance. The proposed legislation requires LLCs to disclose detailed information about each beneficial owner. This includes their full legal name, date of birth, current business address, and an ID number from a recognized document.

“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. “By providing reliable contact information, tenants will be better equipped to advocate for themselves and landlords will be held more accountable.”

For residential properties owned by LLCs, this information would need to be recorded and submitted along with the property deed. Additionally, the bill allows municipalities to make charges related to housing, building, or health codes into liens on the property if they remain unpaid for over a year.

This bill, which passed unanimously in the committee, aims to provide tenants with more clarity and hold landlords more accountable.