On September 9, 2019, changes to Union City Municipal Code §329-32 “Security Funds” became effective. These changes expand the power of the City to require landlords (of buildings with four units or more) to make repairs or improvements to a property with “security funds.” The “security funds” are mandatory transfers of money from a landlord to Union City ostensibly to abate “emergency conditions.” Landlords in Union City, NJ should be aware of the “emergency conditions” which trigger the “security funds” requirement. Today’s requirements are far more expansive than prior law.
329-33 “Depositing of Funds” of the Union City Municipal Code allows the City to require that a landlord deposit money (the amount is based on building size) with the City for the “repair, maintenance, supply or replacement” of “items” “necessary to correct, eliminate or alleviate an emergency condition.” Before September 9, 2019, “emergency conditions” were limited to:
(a) lack of adequate ventilation or light;