He Just Wanted To Remodel His Kitchen—So Why Is His NJ Town Now Suing Him for $220K?

by Anna Baluch

Tewksbury Township is pursuing legal action against Jason Lu, a retired physician, seeking a financial penalty of $220,000.

According to NJ.com’s reporting, the New Jersey township alleges that Lu violated local zoning ordinances and construction regulations by renting rooms within his single-family residence and installing a second kitchen without the required permits.

Lu asserts that the rental income is necessary to offset his substantial property tax burden and offers him social connection in retirement. Furthermore, he contends that the secondary kitchen was present in the home at the time of purchase, rendering his current arrangement fully compliant with the law.

This disagreement has persisted for over three years, escalating after the township issued multiple citations, enforced fines, and even attempted to put a halt to Lu’s rental activity altogether.

For homeowners in New Jersey and across the nation, this case illuminates common errors made during home renovations and when converting property for rental use.

Fortunately, with a bit of research and knowledge, they’re easy to prevent.

What went wrong

Lu’s case highlights a common blind spot for many homeowners: zoning, building, and rental rules operate in parallel, and violating any one of them can trigger significant consequences.

“In this situation, you have a combination of remodeling work (the second kitchen) and rental activity that may not be allowed under local zoning rules for single-family homes. That’s a double hit,” says attorney Jonathan White, managing partner at Jordan & White LLC in Boston.

Even if Lu believed the kitchen already existed and the rentals were harmless, Tewksbury Township saw unpermitted construction and an unlawful conversion of the home into something that resembled a rooming property.

“Once the violations were noted, the fines and enforcement actions followed the code—not Lu’s intentions,” explains White.

The case also reveals a broader reality: There is no national standard for accessory kitchens, room rentals, or short-term leasing. Every jurisdiction has different rules, and many towns have tightened those rules due to housing pressures, safety concerns, and neighborhood character issues.

“Homeowners often assume that if something 'came with the house,' it must be legal—but that’s not always true. Unpermitted work can transfer from one owner to the next, and enforcement often escalates only when the property’s use changes, like adding tenants,” says White.

Common slipups homeowners make

It’s all too easy to remodel or rent out part of your home without much thought and assume everything will work out.

However, even small mishaps such as the ones outlined below can turn into significant headaches and costly mistakes down the road.

Overlooking permit requirements

Homeowners often assume their contractor will take care of any required permits on their behalf. They may also believe it’s better to start remodeling or renting and ask for forgiveness later rather than ask for permission upfront.

“This can lead to very difficult situations for the homeowner, because sometimes by the time they get a citation, they have already spent thousands of dollars in remodeling costs or contractually committed themselves to leasing a portion of their property to a third party,” says attorney David J. Metzger, partner at Williams Teusink in Atlanta.

Confusing past use with current zoning rules

Sometimes, homeowners assume that because their property was previously used in a certain way, then they can continue using the property in that same way.

“Zoning ordinances can have complex 'grandfather' clauses which may or may not allow a new owner to continue a use that is prohibited by the current zoning ordinance,” explains Metzger.

Put simply, homeowners cannot always evaluate what they might be allowed to do based on the prior use of their property or based on the use of surrounding properties.

Thinking renting out your property is no big deal

“Just because you rent to family, short termers, or elderly friends doesn’t mean your municipality cares. Cities and towns consider once dollars are exchanged for rent, it is a business,” explains Shane Lucado, attorney and founder of InPerSuit Inc. in Birmingham, AL.

This opens up the whole can of inspections, fire codes, and how many people can live in a home.

“Some homeowners don’t realize they need to file for a certificate of occupancy change. The ‘$1,000 a day until you fix it’ can really add up after three years,” says Lucado.

How to avoid issues

These tips can reduce the risk of problems and save you money and stress in the future.

Do your due diligence

Spend time on the website of your municipality's building or planning department. Educate yourself on how the zoning regulations may impact what you want to do.

“It’s a good idea to schedule a meeting with a planner or someone else who works for the municipality to discuss what you’re planning and whether it is compliant with the current zoning regulations,” says Metzger.

White says that a 15-minute conversation with the right people can prevent a multiyear legal battle.

Seek legal help

You can also consult a local attorney who is familiar with the applicable zoning ordinances. They can help you determine if your plans are possible and what steps you need to take to ensure compliance.