As used in this chapter, the following terms
shall have the meanings indicated:
DWELLINGS
Includes any building, structure, trailer, or land used as
a trailer park rented or offered for rent to one or more tenants or
family units. Exempt from this chapter are motels, hotels, and similar
type buildings and housing units containing three residential units
or less on a particular lot.
HOUSING SPACE
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.
PRICE INDEX
The consumer price index (all items) for the metropolitan
New York City area, published periodically by the Bureau of Labor
Statistics, United States Department of Labor.
RENT
The amount of consideration including any bonus, benefit
or gratuity demanded or received by virtue of any agreement between
the landlord and tenant for the peaceful and quiet enjoyment of the
use and occupancy of the rental unit.
[Amended 8-8-2005 by Ord. No. 970; 8-10-2009 by Ord. No.
1078]
A. Establishment of rents. Establishment of rents between
a landlord and a tenant to whom this chapter is applicable shall hereafter
be determined by the provisions of this chapter.
B. Annual percentage rent increase. No landlord may request
or receive a percentage increase in rent for a housing space unless
such rent increase is in accordance with the following provisions:
(1) For all tenants who resided in a housing space as
of August 31, 2005, or 20 days after passage: At the expiration of
a lease or at the renewal date of a periodic tenant, no landlord may
request or receive a percentage increase in rent which is greater
than 50% of the percentile difference between the consumer price index
90 days prior to the expiration of the lease and the consumer price
index 90 days prior to the date the lease was entered into from such
tenant.
(2) For all tenants who resided in a housing space on
or after September 1, 2005, or 20 days after passage: At the expiration
of a lease or at the renewal date of a periodic tenant, no landlord
may request or receive a percentage increase in rent which is greater
than the percentile difference between the consumer price index 90
days prior to the expiration of the lease and the consumer price index
90 days prior to the date the lease was entered into from such tenant.
Notwithstanding the foregoing, any such increase shall be subject
to a cap of 5%.
C. Expiration of lease. Any rental increase at a time
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 chapter shall be void. Notwithstanding any
of the provisions of this chapter to the contrary, not more than one
increase in rent shall be permitted in any twelve-month period on
any apartment.
D. Notice of increase. Any landlord seeking an increase
in rent shall notify the tenant of the calculations involved in computing
the increase, including the consumer price index, 30 days before the
expiration of the lease and the permitted rental increase.
E. Landlord certification. No landlord shall charge or
receive and no tenant shall pay such rent increase under this chapter
unless and until the landlord has certified to each tenant and to
the Township's Rent Leveling Officer that the landlord is in substantial
compliance with all municipal and state laws and regulations pertaining
to the maintenance and servicing of the premises in question and,
in addition, has filed with the Township's Rent Leveling Officer simultaneously
with service upon the tenant a copy of the notice to the tenant.
[Amended 4-25-2016 by Ord. No 1249]
F. New base rent. If a housing space covered by this
chapter shall be vacated by the tenant, the landlord may establish
a new base rent. The new occupant shall have the full protection of
this chapter starting with the new base rent.
[Amended 4-25-2016 by Ord. No 1249]
A. Creation. There is hereby created the position of
a Rent Leveling Officer within the Township municipal offices. The
position of Rent Leveling Officer shall be filled by appointment of
the Mayor. The term of office of the Rent Leveling Officer shall run
contemporaneous with the term of the Mayor and shall conclude on the
31st day of December of the Mayor’s final year in office.
B. Powers of Officer. The Rent Leveling Officer is hereby
granted, and shall have and exercise in addition to other powers herein
granted, all powers necessary and appropriate to carry out and execute
the purposes of this chapter, including but not limited to the following:
(1) To issue and promulgate such rules and regulations
as he or she deems necessary to implement the purposes of this chapter,
which rules and regulations shall have the force of the law until
revised, repealed or amended from time to time by such Officer in
the exercise of his or her discretion, provided that such rules are
filed with the Township Clerk.
(2) To supply information and assistance to landlords
and tenants to help them comply with the provisions of this chapter.
(3) To hold hearings and adjudicate applications from landlords for additional rental as determined by §
178-5 of this chapter.
(4) To hold hearings and adjudicate applications from tenants for reduced rental as determined by §
178-7A of this chapter.
(5) To enforce the provisions of this chapter and to initiate
proceedings in the Municipal Court for violations.
(6) To issue subpoenas to compel the attendance of witnesses
and the production of books and records in connection with the administration
of this chapter.
C. The Rent Leveling Officer shall give reasonable opportunity
to be heard to both landlord and tenant before making any determination.
[Amended 12-20-2004 by Ord. No. 952; 8-8-2005 by Ord. No. 970; 12-22-2008 by Ord. No. 1060; 8-10-2009 by Ord. No. 1078]
A. Application to Officer. Where a landlord is not making
a just and reasonable return on his investment, he may apply to the
Rent Leveling Officer for a hardship rent increase. The Officer shall
hold a hearing in the matter upon notice to the landlord and all of
the affected tenants. The Rent Leveling Officer shall receive evidence
and the landlord shall have the burden of establishing that he is
not making a just and reasonable return and shall submit all records
required by the Rent Leveling Officer. The Rent Leveling Officer,
after considering all of the evidence, shall make findings of fact
and conclusions. No landlord may request or receive any rent increase
with respect to any housing space in any dwelling in which there exists
an outstanding notice of violation of any federal, state or local
fire, health or housing law, code or ordinance. The application by
the landlord shall be accompanied by written evidence in support of
the application, and a copy of the application shall be served upon
each tenant affected at the same time the application is filed with
the Rent Leveling Officer. The landlord shall, upon written request
by the tenants, make all books and records for a period of five years
available for inspection.
B. Hearings on applications. In conducting hearings for
hardship applications, the Rent Leveling Officer shall follow the
following standards:
(1) In deciding whether this chapter permits a just and
reasonable return the Officer shall consider the value of the rental
property, the reasonable expense of operating the property, the income,
the rate of return on the value of the property actually permitted
by the rent regulation and the minimum rate of return which would
be just and reasonable for that property. The Officer shall make findings
of fact as to the rate of return on the value of the property which
the landlord will in fact receive under this chapter. The Officer
shall make findings of fact as to that rate of return below which
an actual rate of return would be confiscatory. If the rate of return
falls below the just and reasonable rate, then the Officer shall grant
hardship increases in an amount which will be sufficient to permit
an efficient landlord to receive a just and reasonable rate of return.
(2) In order to establish the rate of return actually
being received under this chapter, the Officer shall deduct reasonable
expenses from the gross rental income and then calculate the percentage
relationship between the resulting net income and the value of the
landlord's property.
(3) In order to establish the value of the property, the
Officer shall consider the value of the property in a rental housing
market free of the aberrant forces which led to the imposition of
controls, i.e., the worth of the property in the context of a hypothetical
market in which the supply of available rental housing is just adequate
to meet the needs of the various categories of persons actively desiring
to rent apartments in the Township.
(4) In considering expenses the Officer may include, but
is not limited to, expenditures for utilities, insurance, maintenance,
reasonable repairs, depreciation for capital improvements, taxes,
allowances for vacancies and uncollectibles and depreciation on the
property.
(5) To the extent that this chapter permits surcharges
for taxes, the surcharges shall be included in gross income and included
as an operating expense or be totally disregarded so that they are
excluded from gross income and excluded from operating expenses.
(6) Where an unreasonable expense has been incurred by
the landlord, the Officer shall reject it and substitute a more reasonable
alternative in its place.
(7) In evaluating the income permitted, each individually
administered apartment complex shall be treated separately. The Rent
Leveling Officer shall have the right to allocate the granted increase,
if any, to the individual unit.
(8) The determination of the minimum rate of return which
is constitutionally permitted shall depend upon findings of fact by
the Officer. The Officer shall evaluate the interests of the consumer
and the general public as well as the interests of the landlord. The
just and reasonable rate of return must be high enough to encourage
good management including adequate maintenance of services; to furnish
a reward for efficiency to discourage the flight of capital from the
rental housing market; and to enable operators to maintain and support
their credit. In considering a just and reasonable return, the Officer
shall consider a return which is generally commensurate with returns
on investments in other enterprises having corresponding risks. Additionally,
the Officer shall not establish the just and reasonable return so
high as to defeat the purposes of rent control nor permit landlords
to demand of tenants more than the fair value of the property and
services which are provided. The rate need not be established as high
as existed prior to regulation nor as high as an investor might obtain
by placing his capital elsewhere.
(9) Application information. An application for a hardship
increase shall include:
(a)
The name and address of the applicant.
(b)
The address, lot and block of the premises.
(c)
A description of the premises including the
number of units and the names of the tenants; the present rent for
each unit and the date of the commencement of the occupancy of all
present tenants.
(d)
The cost of acquisition and/or construction.
(e)
A detailed list of all expenses for the last
five years.
(f)
The gross rental for the last five years.
(g)
A statement of rate of return for the last five
years.
(h)
A statement of the rate of return deemed by
the applicant to be a just and reasonable return.
(i)
A statement of the requested increase for each
apartment unit.
(j)
A certification that the applicant is in substantial
compliance with all municipal and state laws and regulations pertaining
to the maintenance and servicing of the premises in question.
C. Incomplete applications. The application shall be
reviewed by the Officer and if it is not complete, the applicant shall
be advised in writing within seven days of any deficiencies.
D. Hearing on application. The Officer shall schedule
a public hearing no later than three weeks after the submission of
a complete application and shall thereafter, if required, promptly
schedule additional hearing dates. Upon the conclusion of the hearings,
the Officer shall, within 14 days, render a written decision which
shall include appropriate findings of fact and conclusions conformable
to the standards of the within regulations. A copy of the Officer's
decision shall be mailed to the parties in interest by regular mail.
E. Fee for application. A filing fee as set forth in Chapter
71, Fees, shall be paid with the application for hardship increase. On any other application before the Rent Leveling Officer, there shall be a filing fee as set forth in Chapter
71, Fees.
[Added 5-5-2003 by Ord. No. 912; amended 4-25-2016 by Ord. No 1249]
A. Upon submission of an application for hardship rent
increase and in addition to any other fees established in this chapter,
the applicant shall be required to establish an escrow account with
the Township of Little Falls. The Little Falls Rent Leveling Officer
is authorized to retain without pay from the Township any financial
professional, real estate professional or any other professional that
the Rent Leveling Officer may require in the processing of those applications.
Upon receipt of the hardship rent increase application, the Rent Leveling
Officer shall forward to said professional, if it deems it necessary,
the application and accompanying documents within seven days of receipt
of the application and documents. The professionals shall submit to
the Rent Leveling Officer an estimate of funds sufficient in amount
to undertake the services to be rendered. The professional shall submit
the estimate of funds to the applicant simultaneously. The applicant
shall immediately deposit such funds in an escrow account maintained
by the Township Treasurer. Prior to drawing monies out of the escrow
account, each professional engaged by the Rent Leveling Officer shall
submit a voucher in accordance with N.J.S.A. 40A:5-16 et seq. to the
Rent Leveling Officer.
B. The applicant may appeal, by written request, the
amount of the escrow to the governing body. The governing body shall
make a determination as to the reasonableness and necessity of the
fee. Such appeal must be made within seven days from the date the
applicant receives the estimate of funds.
C. Should additional funds be required after the original
funds are exhausted, the applicant shall place sufficient moneys in
the aforesaid escrow account. Any moneys left in the escrow account
after the determination of the application shall be returned to the
applicant simultaneously with payment of the voucher(s) for the Rent
Leveling Officer's professional(s).
D. The Rent Leveling Officer shall take no formal action
on any hardship rent increase application unless and until escrow
funds have been deposited with the Township, and any time limitations
set forth in this chapter should be extended until all such escrow
funds are deposited with the Township.
[Amended 4-25-2016 by Ord. No. 1249]
A willful violation of any provision of this chapter including, but not limited to, the willful filing with the Rent Leveling Officer of any material misstatement of fact, shall be liable upon conviction, to the penalty stated in Chapter
1, General Provisions, Article
I. In addition, treble damages may be sought in a Court of competent jurisdiction. Such fines or damages shall be computed on the basis of a separate violation as to each leasehold.