The New Jersey state Senate passed legislation requiring home sellers and landlords to notify prospective buyers and renters if a property of interest is at risk of being affected by flooding.

The bill, which was initially approved in December, was conditionally vetoed by Governor Murphy earlier this month, who said he wanted greater penalties in the legislation.

“I cannot support the provision of the bill that would require a tenant to suffer damage to their personal property equal to five times the amount of their monthly rent before they could terminate a lease based on a landlord’s failure to make required disclosures,” Governor Murphy said in his veto message.

“I am concerned that this threshold is so high that it could effectively insulate landlords from suffering any consequence for failure to comply with the bill’s requirements — particularly in circumstances involving low-income tenants who may have less high-value personal property,” he added.

“As dramatic weather events increase, we can expect flooding to be a major issue for renters and homeowners alike,” Senator Bob Smith (D-Middlesex/Somerset), who sponsored the bill, said in a statement.

“I agree with the Governor’s intentions to strengthen consumers’ rights under this legislation. Disclosing to both groups about known flooding vulnerabilities is a must, and there will be consequences for failing to do so.”

The bill would require the Department of Community Affairs to create a model notice used by realtors and landlords to notify prospective buyers or renters of flooding risks to the property before they become obligated under any contract.

The form would indicate if any of the property is located in a Federal Emergency Management Agency Special Flood Hazard Area or a moderate Risk Flood Hazard Area and if the property has ever experienced any flood damage in the past.

To support consumer protections, a tenant may terminate the lease without penalty at any time, if the landlord fails to disclose this information and after they become aware that the property is located in a flood plain, according to the Governor’s recommendations.

New Jersey’s disclosure laws do not explicitly require that a seller tell a home buyer about past flood damages, and according to one report, nearly 8,000 homes in New Jersey were purchased in 2021 that were estimated to have been previously flooded.

The bill passed by a unanimous 36-0 vote.

The revamped bill must also pass the Assembly before it can go back to the governor’s desk.