4. a. A qualified municipality may, by ordinance, prohibit the conversion of any affordable rental housing unit to a condominium or cooperative form of ownership. Upon the adoption of the ordinance to prohibit the conversion of affordable rental housing units, the prohibition shall remain in effect until such time as the governing body adopts a resolution to suspend the prohibition, as set forth in paragraph 3 of this subsection. An ordinance to prohibit the conversion of affordable rental housing units shall:

(1) recognize a shortage of affordable rental housing within the municipality and the public need to prevent the loss of affordable rental housing units through conversions;

(2) establish criteria to determine the minimum number of affordable rental housing units required in the municipality. The criteria may include, but not be limited to, the vacancy rate of affordable rental housing units, the proportion of affordable rental housing units to total housing units, the proportion of existing affordable housing units to condominium and cooperative units, or any other consideration that the governing body may deem appropriate; and

(3) provide for the suspension of the prohibition, by resolution, upon finding that the criteria established pursuant to paragraph 2 of this subsection have been met. If after adopting a resolution to suspend the prohibition, the governing body of the qualified municipality finds that the criteria established pursuant to paragraph (2) of this subsection are no longer met, then the governing body may, by resolution, reinstate the prohibition.

b. The governing body of a qualified municipality shall transmit any ordinance or resolution adopted pursuant to subsection a. of this section to the department within five days of adoption.

c. Notwithstanding any other provision of law, rule, or regulation to the contrary, the department shall not approve an application for registration for the conversion of any affordable rental housing unit located in a qualified municipality during such time as the ordinance adopted pursuant to subsection a. of this section remains in effect.

d. Notwithstanding any other provision of law, rule, or regulation to the contrary, any application for registration of conversion, notice of intention to convert, full plan of conversion, public offering statement, or other required documentation submitted pursuant to any law or regulation, including but not limited to, P.L.1991, c.509 (C. 2A:18-61.40 et al.), P.L.1981, c.226 (C. 2A:18-61.22 et al.), P.L.1974, c.49 (C. 2A:18-61.1 et al.), or P.L.1977, c.419 (C. 45:22A-21 et seq.), and that is associated with the conversion of any affordable rental housing unit located in a qualified municipality, shall be deemed null and void if submitted to the department, designated administrative agency, or tenant during such time as the ordinance adopted pursuant to subsection a. of this section remains in effect.

L.2020, c.40, s.4.