August 19, 2026
Source: Saiber Real Estate & Land Use Alert
The New Jersey Department of Law and Public Safety, Division on Civil Rights amended the Multiple Dwelling Reporting Rule (“MDRR”) to significantly expand its reach. Property owners who were previously exempt may now be subject to reporting obligations under the revised rule.
Background
The MDRR previously applied to owners of 25 or more dwelling units in the same location. Because this threshold was assessed on a per-location basis, an owner whose individual property contained fewer than 25 units was exempt, even if in aggregate the owner’s properties across the state exceeded 25 units in total. These amendments apply to the collection of data by owners beginning on January 1, 2026, and will apply to all MDRR Reports filed in January 2027 and later.
The Change
The rule now applies on a per-owner basis: any owner with 25 or more dwelling units in aggregate across multiple properties are now subject to the reporting requirement. For example, an owner with five properties of six units each (totaling 30 units) would now be subject to the rule, even though no single property meets the 25-unit threshold.
How Does This Impact Property Owners?
As a result of this change, affected property owners may receive correspondence from the Department of Law and Public Safety notifying them of their new reporting obligations. If you own multi-unit residential properties in New Jersey, you should be on alert for such mailings and review them promptly upon receipt.
What This Means for You
If you own multiple residential rental properties in New Jersey, we recommend conducting an internal review to determine whether your aggregate unit count exceeds 25. Property owners who cross this threshold should prepare for potential reporting obligations and review any correspondence received from the Department of Law and Public Safety.
If you have questions about how this amendment affects your properties or your reporting obligations, please do not hesitate to contact Nino Coviello, Justin Calta, Peter Kizima, or another member of our Real Estate Practice Group
