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Executive Order 107 imposes uniform restrictions on certain activities in New Jersey. Many media outlets covered the generic requirements of this Order. This post focuses on the effective of Executive 107 on the multi-family property industry.

As a general matter, EO107 requires that all New Jersey employees remain home or at their “place of residence” unless a specific exception applies. One of these exceptions is travel necessary to report to or perform a job.  The Order further requires that business “whether closed or open to the public” “accommodate’ the workforce for “telework or work-from-home arrangements.” Multi-family properties rely on the hard and essential work of porters, building maintenance staff and service technicians. It is impossible for these workers to perform their jobs remotely.

EO17 requires that businesses with workers who cannot work remotely “reduce the staff on site to the minimal number necessary to ensure operations can continue.” For the remaining minimal staff, it is required that business operations “abide by social distancing practices” and engage in the “frequent use of sanitizing products on common surfaces.”

On November 5, 2019, voters in Jersey City, NJ approved expansive regulations on “short term rentals” commonly listed on Airbnb, VRBO and similar sites. These regulations (codified in Chapter 255 of the Jersey City Municipal Code) permit short rentals only in limited circumstances. This post is one of series which will discuss the effects of Ordinance 19-077 on multi-family properties in Jersey City. The discussion begins with: Who can list on Airbnb after 19-077?

Chapter 255 of the Jersey City Municipal Code regulates short-term rentals after January 1, 2020. To understand the ordinance, it is first necessary to know the definition of a short-term rental. Short-term rentals are those residences which meet three conditions. First, the property must be a residential property offered for occupancy by someone other than property’s owner for less than 28 consecutive days. Second, the property must be regularly used and kept open for the lodging of  transient guests. Lastly, the property must be advertised or “held out to the public” as a place regularly rented to transient occupants. Put simply, a short-term rental is one advertised for short stays by non-owners.

After January 1, 2020, short-term rentals not specifically permitted by Chapter 255 are prohibited. Permitted short-term rentals are capped at 60 nights, unless specific owner-occupancy criteria are met.  There are only 5 categories of permissible “cap free” short-term rentals. These categories, all predicated upon owner-occupancy are:

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