## Facts

- A three-unit residential building in Union City, New Jersey, was acquired by an individual, who later formed a limited liability company (LLC) and transferred title to the LLC.
- Defendants were month-to-month residential tenants in one of the building’s units.
- The LLC served a notice to quit terminating the tenancy, citing N.J.S.A. 2A:18-61.1(l)(3) and stating that the LLC’s sole member intended to live in the unit.
- The tenants did not dispute service or contents of the notice, but contested the landlord’s ability to use the statute’s owner-occupancy ground.
- The trial court decided the matter on stipulated facts and dismissed the eviction complaint.
- The landlord appealed.

## Issues

1. Whether an LLC that holds title to a three-unit residential building may invoke N.J.S.A. 2A:18-61.1(l)(3) based on the intent of its sole member to personally occupy a unit.
2. Whether the statutory terms “owner” and “personally occupy” permit attributing an individual member’s planned occupancy to a title-holding entity.

## Decision

- The Appellate Division affirmed the dismissal of the eviction complaint.
- The court held that N.J.S.A. 2A:18-61.1(l)(3) applies to the title-holding owner who will personally occupy the unit.
- Because the LLC, not its member, held title, the member’s personal intent to live in the unit did not satisfy the statute.
- The court concluded that an LLC, as an artificial entity, cannot “personally occupy” residential premises within the meaning of the owner-occupancy exception.

## Legal Principles

- The Anti-Eviction Act is remedial and tenant-protective; statutory exceptions allowing removal are construed narrowly.
- Under N.J.S.A. 2A:18-61.1(l)(3), the “owner” refers to the title holder seeking to personally occupy the unit; the owner-occupancy exception is not satisfied by a non-owner individual’s intent.
- A landlord that elects entity ownership receives entity benefits but is bound by statutory limits tied to personal occupancy by the owner.
- A court will interpret the statute in light of its purpose to limit removals of residential tenants, especially in the absence of tenant wrongdoing.

## Conclusion

The court held that the owner-occupancy exception in N.J.S.A. 2A:18-61.1(l)(3) cannot be invoked by a title-holding LLC based on its member’s desire to live in the unit, so the tenants could not be removed on that ground.


3519-3513 Realty, LLC v. Law, 406 N.J. Super. 423, 967 A.2d 954 (N.J. Super. Ct. App. Div. 2009)