N.J. Stat. § 26:2H-7.2
Notwithstanding the provisions of section 7 of P.L. 1971, c.136 (C.26:2H-7) to the contrary, a nursing home which proposes to increase the total number of licensed beds contained therein by not more than 10 beds or 10% of its licensed bed capacity, whichever is less, within a period of five years is exempt from the requirement of obtaining a certificate of need if the nursing home is in compliance with all State regulations governing its operations. No licensed bed that is added by a nursing home in accordance with the requirements of this section, and no licensed bed that is part of an unimplemented certificate of need, may be sold or transferred to any other nursing home except upon application for and receipt of a certificate of need as provided by P.L. 1971, c.136 (C.26:2H-1 et seq.). A nursing home that has removed beds from its license within the preceding five years shall not be eligible to increase its licensed bed capacity under the provisions of this section.
N.J.S. § 26:2H-7.2