[Adopted 4-23-1985 by Ord. No. 3779 (Ch.
421 of the 2004 Code)]
As used in this article, the following terms
shall have the meanings indicated:
Fit for habitation as defined by the statutes, codes and
ordinances in full force and effect in the State of New Jersey, County
of Union and Township of Union, and occupied or unoccupied and offered
for rent.
Rental period for the housing space exclusive of capital
improvement surcharges, hardship surcharges or any other surcharge
which may be allowable under this article.
Includes any building or structure or trailer, or land used
as a trailer park, rented or offered for rent, to one or more tenants
or family units. Exempt from this article are motels, hotels and similar
type buildings and housing units of two units or less, and all buildings
which are presently subject to rent control or rent stabilization
by the governments of the United States or the State of New Jersey.
Housing units newly constructed or rented for the first time to any
tenant are likewise exempt and the initial rent may be determined
by the landlord.
Includes that portion of a dwelling, rented or offered for
rent, for living and dwelling purposes to one individual or family
unit, together with all privileges, services, furnishings, furniture,
equipment, facilities and improvements, connected with the use or
occupancy of such portion of the property.
Action on the part of the landlord in refusing to let, rent,
rerent or rerent to a tenant, or basis for dispossess for any one
or more of the following:
Failure on the part of the tenant to pay rent
due and owing under the lease, whether the same be oral or written.
Disorderly or disturbing noises or conduct on
the part of the tenant that destroys the peace and tranquility of
the landlord, other tenants or other persons living in or about the
neighborhood.
Intentional or persistent neglect, damage or
injury by the tenant to the property of the landlord.
Constant violation by the tenant of the rules
and regulations of the landlord, if signed by the tenant or incorporated
in the lease, with a copy being given to the tenant.
Substantial breach of the terms and conditions
of the lease agreement by the tenant.
The owner seeks to occupy premises himself.
The owner seeks to close the premises down without
permitting any further occupancy.
[Amended 3-8-1994 by Ord. No. 4297]
A.
Establishment
of rents between a landlord and a tenant to whom this article is applicable
shall hereafter be determined by the provisions of this article. At
the expiration of a lease, or at the termination of the lease of a
periodic tenant, no landlord may request or receive an increase in
rent of more than 4% over and above the base rent paid by said tenant
during the leasehold period. For a periodic tenant whose lease terms
shall be less than one year, said tenant shall not suffer or be caused
to pay any rent increase in any calendar year which exceeds the aforementioned
4% for the calendar year prior thereto. The effective date of any
lease, regardless of the date of the instrument shall be the date
of taking possession.
B.
Where the total
number of dwelling units exceed 500 units, the following shall apply:
[Added 9-13-2005 by Ord. No. 4893]
Any rental increase at a time of other than
at the expiration of a lease or termination of a periodic lease shall
be void. Any rental increase in excess of that authorized by the provisions
of this article shall be void. No charge, except those specifically
authorized by this article, shall be allowed in connection with any
rental.
Any landlord seeking an increase in rent shall
notify the tenant no less than 30 days prior to the proposed increase
by certified mail, return receipt requested, or by personal service,
provided that the landlord obtains the tenant's signature acknowledging
receipt of said notice, of the calculations involved in computing
the increase, the allowable percentage increase and the allowable
rental increase.
A.
A landlord shall
not be entitled to nor receive any tax surcharge by reason of increase
in municipal property taxes.
B.
In the event
that the landlord is successful in the prosecution of a tax appeal
for the reduction of municipal taxes, the tenants shall be entitled
to and receive from the landlord an allowance or refund of 50% of
said tax reduction after deducting the expenses incurred by the landlord
in prosecuting said appeal. The landlord shall serve notice within
50 days after final determination and judgment of said tax appeal
upon all those tenants who were tenants in said premises at the time
the tax appeal was filed. The notice to tenants shall set forth in
detail the amount constituting the judgment reducing the municipal
taxes; the reduction in dollars and cents; the particular expenses
incurred by the landlord in prosecution of the tax appeal; and the
calculation showing the apportionment and the particular amount due
to each tenant as a refund or allowance. The refund or allowance shall
be paid in lump sum or in six monthly installments, beginning 60 days
after the final determination or judgment of the tax appeal.
A.
An improvement
shall be an improvement which is depreciable pursuant to the Internal
Revenue Code of the United States and rules and regulations promulgated
thereunder and allowed depreciable expense by the Internal Revenue
Service.
B.
"Capital improvement"
means capital which is expended by a landlord in the nature of investment
for the improvement of the dwelling made with the expectation of its
useful existence for an indefinite period into the future in which
will inure in a significant degree to the benefit of the tenants thereof
and which is not required to be provided by contractual obligations
between the landlord and tenant or by state and local law.
C.
"Capital improvement"
means capital which is expended by landlord in the nature of an investment
for the improvement of the dwelling made with the expectation of its
useful existence for an indefinite period into the future, which service
is not previously provided to the tenant.
D.
"Capital improvement"
means capital which is expended by the landlord in the nature of an
investment for the improvement of the dwelling made with the expectation
of its useful existence for an indefinite period into the future,
which investment does not simply replace the existing facility but
in fact improves the facility by the use of improved or better material
as the provision of upgraded or improved facility. A capital improvement
surcharge shall be limited to the difference between the cost of the
improved facility and the cost of simply replacing the existing facility.
E.
Useful life.
(1)
The useful
life of the capital improvements shall be determined by the depreciable
life of the improvement as set forth in the Internal Revenue Code
and rules and regulations promulgated thereunder.
(2)
The useful
life of the capital improvement shall be determined by the Rent Leveling
Board after hearing testimony as to the depreciable life of the items,
the useful life of the items and any guaranties on the items. The
depreciable period used for the calculation of any capital improvement
surcharge shall not be less than the longer of the aforementioned
items.
(3)
The useful
life of the capital improvement shall be determined by the actual
useful life of the improvement without reference to artificial schedules
of depreciation.
(4)
The landlord
shall file a completed application, on whatever forms the Board may
specify, a minimum of 30 days in advance of a proposed hearing, with
the Rent Board Secretary. The Board Secretary shall schedule said
matter for hearing as soon as practicable, but not less than 30 days
nor more than 65 days from the date of the filing of a completed application.
The landlord shall notify all affected tenants of the proposed hearing
date by personal service, or certified mail, at least 30 days in advance
of the proposed hearing date. The landlord shall promptly file proof
of service with the Rent Board Secretary upon completion of services.
(5)
The landlord
shall supply the following information to the Rent Board at the time
of filing the application and shall serve the same upon all affected
tenants, together with the meeting notice:
(a)
Total
cost of the improvement.
(b)
Total
square footage of the rental premises.
(c)
Square
footage occupied by the individual tenant.
(d)
Projected
useful life of the improvement and depreciable life of the improvement
for Internal Revenue Service.
(e)
Cost of
improvement per square foot on a monthly basis.
(f)
Projected
monthly cost to tenant of capital improvement surcharge.
(6)
In addition,
the applicant shall supply the following information with his application
to the Rent Board and shall notify each tenant that this information
is available for review, for at least 30 days prior to the hearing,
at a designated place on the rental premises, at least five days per
week between 8:00 a.m. and 6:00 p.m., as well as a minimum of one
evening per week for at least three hours.
(a)
Invoices
showing the total cost of the improvement.
(b)
Copies
of proof of payment (canceled checks, etc.).
(c)
Proof
of competitive bids for the work.
(d)
Copies
of any and all building permits, final inspection reports and any
and all other records of inspection of the improvement.
(e)
A copy
of the contract awarded for the improvement.
(f)
Copies
of any guaranties associated with the improvements.
(g)
The cost
of simple replacement of the facility.
(7)
Upon completion
of a hearing, the Rent Board may award a capital improvement surcharge.
The Board shall determine the total costs of the increase, but no
interest shall be awarded in the event that the cost of the improvement
is financed. The Board shall consider the useful life of the improvements,
the depreciable life of the improvement, to determine the total square
footage of the rental property, as well as the portion allocable to
each tenant. The Board shall determine the total cost of the improved
facility, as well as the cost of replacing the previously existing
facility, and shall calculate the difference in cost between the two.
The difference may be allocated among the affected tenants as a capital
improvement surcharge.
(8)
The capital
improvement surcharge, if approved by the Board, shall be paid on
a monthly basis, with the total cost of the improvement allocated
proportionately in accordance with the relationship that the square
footage occupied by the tenant bears to the total square footage of
the premises, allocated over the useful life of the improvement as
found by the Board.
|
Sample Calculation
| |
|---|---|
|
Factors
|
Amount
|
|
Cost of improvement
|
$6,000
|
|
Useful life
|
5 years
|
|
Percent of space occupied by tenant
|
25%
|
|
Cost per year
|
$1,200
|
|
25% to tenant
|
$300
|
|
Per month/60 months
|
$25
|
(9)
In no event
shall the monthly payment for a capital improvement surcharge exceed
10% of the current base rent.
(10)
No capital
improvement surcharge shall be collected, unless the same has been
approved by the Rent Board. No capital improvement surcharge shall
be included in base rent for the purpose of calculating yearly rental
increases.
(11)
Any improvement
which merely improves the appearance of the property, but does not
extend or enhance the useful life of the premises, such as improved
landscaping, shall not qualify as a capital improvement under the
terms of this article.
(12)
Anything
in the foregoing sections notwithstanding, the useful life of capital
improvements, if allowed by the Board, shall not be less than the
following schedule:
|
Capital Improvement
|
Years
|
|---|---|
|
Masonry, brickwork, paving
|
25
|
|
Boilers or new heating systems, plumbing, pumps
or components, plumbing or heating systems
|
25
|
|
Storm windows
|
25
|
|
Roofs
|
20
|
|
Electrical work, including the installation
of smoke detectors and air conditioners
|
25
|
|
Trucks and automobiles, tractors, lawn mowers
and motorized ground maintenance equipment
|
5
|
|
Office equipment and furnishings
|
15
|
|
Stoves and refrigerators
|
20
|
|
Dumpsters and component parts
|
25
|
|
Insulation and vinyl peaks or siding
|
40
|
A.
In the event
that a landlord's annual residential operating expenses, as hereinafter
defined, exceeds 60% of his gross annual residential income as hereinafter
defined, then the landlord may submit to the Rent Leveling Board an
application for a hardship rental increase. No landlord may apply
for additional hardship relief while he is collecting a prior hardship
award.
B.
For the purposes
of this section, the term "gross annual residential income" is defined
as all annual income derived directly or indirectly from the operation
of the landlord's property, including but not limited to all residential
rents received, all earnings from commissions from vending machines,
laundry equipment and supplies, deductions from security deposits,
late fees, key charges, finder's fees, parking fees, garage fees,
pool fees, income from rebates, capital improvement income derived
from any moneys collected from this property in excess of those moneys
required to pay expenses on this property, including but not limited
to interest on bank accounts, money market investments, certificates
of deposit and net proceeds of refinancing. The landlord, as part
of his application, shall indicate any and all bank accounts in which
rent proceeds are deposited, including the name of the bank, name
of the account, number of the account, type of account and disbursement
of any funds which are not expended to pay operating expenses on the
premises. The Rent Leveling Board may request and the landlord shall
supply documentation supporting the gross annual income as dated in
the landlord's application. In any case, where rental units are occupied,
in whole or in part, rent free, the full rental value shall be considered
the legal rent therefor for the purposes of setting forth the gross
annual residential income.
C.
For the purposes
of this section, the term "annual residential operating expenses"
is defined as all reasonable, necessary and valid expenses (as determined
by the Rent Leveling Board) incurred and paid by a landlord for the
rental property for which a hardship increase is requested, excluding
therefrom, however, depreciation, mortgage interest and amortization,
expenses associated with hardship applications, which expenses shall
be separately itemized, expenses associated with the refinancing of
any mortgage affecting the premises, legal fees except those fees
for summary dispossess actions or for lease preparation, which fees
may be included as expenses, interest on any other loan in connection
with the premises, expenditures which may qualify as capital improvements
and including but not limited to expenses for supplies, administrative
costs, management fees limited to 5% of gross rental, heating fuel,
electricity, water supply, sewerage charges, garbage disposal, gas,
building services, security, grounds maintenance, repairs (other than
reimbursed repairs), painting and decorating, real estate taxes, other
taxes, permit fees, insurance, wages and recreational amenities. Only
annual, residential operating expenses, which are reasonable, ordinary
and necessary, shall be allowed. Extraordinary or onetime expenses
shall not be considered as part of hardship expenses, except that
capital expenditures which previously have been amortized as part
of a hardship application shall continue to be considered as annual
residential operating expenses until said capital expenditures are
fully amortized. Any capital expenditure which has not been amortized
as part of a hardship application, regardless of when it was incurred,
shall not be considered as an operating expense for purposes of a
hardship application. With the exception of the foregoing capital
expenditures, only ordinary residential operating expenses incurred
in the twelve-month period ending with the last day of the month immediately
prior to the filing of the hardship application shall be considered.
D.
Where nonresidential
income is received in connection with the property, the landlord shall,
in addition to the above, furnish the Rent Leveling Board with the
income and expenses related to said nonresidential uses for the purposes
of determining the effect thereof on the hardship application of the
landlord.
E.
The landlord
shall supply complete income and operating expense figures for the
three-year period immediately preceding the date of the application,
which figure shall be compiled in three one-year compilations. These
figures shall be certified by a professional certified public accountant
licensed in the State of New Jersey, except that in the case of rental
property with less than 10 units, the figures may be certified by
a sole proprietor, partner if a partnership or a corporate officer
if a corporation, to be a true and accurate summary of the landlord's
books and records.
F.
A public hearing on said application shall be scheduled to be held not earlier than 60 days of the date of receipt of a completed application, at which time the Rent Leveling Board and landlord and the tenants and/or their respective agents or representatives shall be given an opportunity to be heard. Hardship surcharges shall, except as specifically provided herein, be collectible for a period of 12 months beginning with the date of notice of said surcharge in conformity with applicable state law. Charges for hardships shall not be considered additions to the base rent for purposes of computing rental increases pursuant to § 447-12 hereof. No hardship surcharge currently in effect shall be collected for a period of more than 12 consecutive months. Anything to the foregoing notwithstanding, no hardship award shall exceed 10% of the tenants' current base rent, the Board shall prorate the award over a period exceeding 12 months, effectuating a full hardship award but insuring that a single monthly payment shall not exceed 10% of the current base rent.
G.
The landlord
shall notify each tenant of the subject property by certified mail,
return receipt requested, or by personal service, of the date, time
and place of the public hearing and of the substance of the landlord's
application at least 30 days prior to the hearing and provide proof
of service to the Rent Leveling Board.
H.
Notice of hearings.
(1)
In addition to the provisions in Subsection F above, notice of the time, date and place of the hearing shall be given by the landlord, at his expense, in the form of a public notice published in two newspapers circulating within the municipality. Said notice shall appear at least 10 days prior to the date of the hearing. Upon submission of an application, the applicant shall be required to establish an escrow account in a sum equal to $20 per apartment unit in the affected premises, with the Township of Union.
(2)
Upon receipt
of an application for relief, the Board shall forthwith send a copy
thereof to any professional experts retained to assist the Board in
processing of said application.
(3)
The applicant
shall forthwith deposit such funds in the escrow account maintained
by the Tax Collector of the Township of Union. The professional experts
shall submit vouchers for all reasonable and necessary fees for the
professional services rendered, which fees shall be paid from the
escrow account in the manner prescribed by N.J.S.A. 40A:5-16 through
40A:5-18.
(4)
The professional
expert shall, at the time of submission of any such voucher, forward
a copy of the same to the applicant. In the event that the applicant
questions the reasonableness of any such voucher the applicant shall,
not later than five days after receipt of a copy of said voucher,
make written protest of such voucher to the Board. In no event shall
the Board authorize the payment of any voucher submitted pursuant
to this section sooner than 10 days from its submission.
(5)
Any of the
aforesaid moneys left in the escrow account upon completion of the
application shall be returned to the applicant as soon as is practicably
possible.
(6)
Should additional
funds be required after the original funds are exhausted and should
such funds be deemed necessary in the judgment of the Board, then
such funds shall be paid by the applicant to the Tax Collector of
the Township of Union and placed in the escrow account.
(7)
The Board
shall take no formal action on any application, unless and until all
escrow funds have been deposited with the Tax Collector of the Township
of Union.
I.
The Rent Leveling
Board shall either grant or deny the application no later than the
next subsequent meeting.
J.
If a landlord
has been in violation of the chapter, then the tenant shall have a
remedy to receive a refund for any overcharge retroactive to two years
from the date of the complaint.
K.
The tenant shall
be immuned against eviction notices or other harassment by the landlord
while the Board is reviewing the complaint by the tenant.
[Amended 7-26-1988 by Ord. No. 3977]
A.
There is hereby
created a Rent Leveling Board within the Township of Union. Said Board
shall consist of seven members, one of whom shall be a landlord, two
of whom shall be tenants and the remaining four of whom shall be not
either a tenant or a landlord of residential real estate. The members
of said Board shall be appointed by the Township Committee, and the
terms of office shall be for a period of three years; however, the
members of the Board first appointed hereunder shall have terms as
follows:
B.
In addition to
the above members of said Rent Leveling Board, the Township Committee
is authorized to appoint one alternate for each of the categories
identified as "tenant" and not to be either a tenant or a landlord,
in order that there will be an alternate for the "tenant" category
and for what constitutes the public category, which said alternates
shall serve in the absence of their respective category member or
members. The term of office of each of said alternates shall be for
a period of one year from the date of appointment.
The Rent Leveling Board is hereby granted and
shall have and exercise, in addition to other powers herein granted,
all the powers necessary and appropriate to carry out and execute
the purposes of this article, including but not limited to the following:
A.
To issue and
promulgate such rules and regulations as it deems necessary to implement
the purposes of this article, which rules and regulations shall have
the force of law until revised, repealed or amended from time to time
by the Board in the exercise of its discretion, provided that such
rules are filed with the Township Clerk.
B.
To supply information
and assistance to landlords and tenants to help them comply with the
provisions of this article.
C.
To hold hearings
and adjudicate applications from landlords for additional rental as
herein provided.
D.
To hold hearings
and adjudicate applications from tenants for reduced rental as herein
provided.
E.
To subpoena any
and all records, documentary evidence, witness testimony and any and
all other information necessary to the rendering of a decision by
the Board.
A quorum for the purpose of conducting a meeting
or acting upon matters before the Board shall require the attendance
of a majority of the membership of the Board.
Both the landlord and tenant may appeal the
findings of the Board to the proper courts in accordance with the
rules pertaining to administrative appeals. The findings and rulings
of said court shall be final.
A tenant who is aggrieved by the failure of
a landlord to comply with the terms of the chapter may file for a
hearing with the Board.
For the purposes of considering the reasonableness
of the rents being charged on an appeal by the landlord or the tenant,
the Board shall take into consideration whether the landlord has maintained
the same standards of service, maintenance, health and safety conditions,
furniture, furnishing and equipment in and for the rented housing
space and dwelling as the landlord provided at the date the tenancy
was entered into or as required by the current health, safety and
housing laws and regulations. The Board may reduce the base rent of
any tenant, in the event that the landlord reduces the standards of
services, maintenance, health and safety conditions, furniture, furnishings
and equipment which were provided at the outset of the tenancy.
No landlord shall, after the effective date
of this article, charge any rents in excess of what he was receiving
from the effective date of this article, except for increases as authorized
by this article.
[Amended 10-28-1986 by Ord. No. 3879; 12-13-1988 by Ord. No.
3998; 10-26-2004 by Ord. No. 4842; at time of adoption of Code (see
Ch. 1, General Provisions, Art. I)]
A violation of any of the provisions of this
article, including, but not limited to, the willful filing with the
Rent Leveling Board of any material misstatement of fact, shall be
punishable by one or more of the following: imprisonment in the county
jail or in any other place provided by the municipality for the detention
of prisoners for any term not exceeding 90 days or by a fine not exceeding
$2,000 or by a period of community service not exceeding 90 days,
to become effective on the effective date of this section. A violation
affecting more than one leasehold shall be considered a separate violation
as to each leasehold.
This article, being necessary for the welfare
of the Township of Union and its inhabitants, shall be liberally constructed
to effectuate the purposes thereof.
[Added 10-25-2016 by Ord.
No. 5402; amended 2-28-2017 by Ord. No. 5418]
A.
The rent control provisions of this article shall no longer apply to the Crossroads Garden Apartments Rehabilitation Area subject to the terms and conditions of this § 447-27. For purposes of this section, the phrase "Crossroads Garden Apartments Rehabilitation Area" is defined as the property commonly known as "Block 405, Lots 19 and 57" on the Tax Map of the Township of Union that has been designated as an area in need of rehabilitation pursuant to the "Local Redevelopment and Housing Law," P.L. 1992, c. 79 (N.J.S.A. 40A:12A-1 et seq.).
B.
The exclusion of the Crossroads
Garden Apartments Rehabilitation Area from the rent control provisions
is explicitly limited by and conditioned upon the following:
(1)
Capital improvements made
or caused to be made by the landlord into the Crossroads Garden Apartments
Rehabilitation Area in an amount at least equal to $5,000 per unit;
(2)
The capital improvements
shall be made to the Crossroads Garden Apartments Rehabilitation Area
within 10 years of the effective date of this section;
(3)
The exclusion from the rent control provisions in this § 447-27 shall not apply to any current tenants who have been residents of the Crossroads Garden Apartments Rehabilitation Area for at least 10 years as of the effective date of this section, and such long-term residents shall remain subject to the protections and administrative relief of this article for so long as they remain tenants within the Crossroads Garden Apartments Rehabilitation Area; and
(4)
The landlord shall provide
notice of the passage of this section and the exclusion of the Crossroads
Garden Apartments Rehabilitation Area from the provisions of this
article, including the terms and conditions thereunder, to all residents
within this article within 30 days of the effective date of this section.
C.
In the event the conditions of § 447-27B are not satisfied, the exclusion granted in this § 447-27 shall terminate automatically and the full provisions of this article shall be reinstated and applied to the Crossroads Garden Apartments Rehabilitation Area with no further action of the Township or the Rent Leveling Board.
