It is deemed necessary by the Borough Council in view of the demand
for apartment dwelling units within the borough that some type of Rent Leveling
and Control be enacted by the Council, and the use of a relationship between
the consumer price index issued by the U.S. Bureau of Labor Statistics as
provided in prior ordinances has resulted in inequities, and under the police
powers granted to the Council in order to promulgate the health, safety and
welfare of the citizens of the borough a Rent Leveling and Control Board is
determined to be necessary within the borough.
As used in this chapter, the following terms shall have the meanings
indicated:
BASE RENT
The lawful rent in effect for housing space and garage or parking
space, if any, on July 1, 1982, plus any increases specifically permitted
by ordinance subsequent to that date or adjudicated by the Rent Leveling Board.
COMPLEX
A group of two or more dwellings which are operated as a single entity
for management purposes.
DWELLING
Any building or structure rented or offered for rent, commonly known
as an "apartment," and in addition, any housing unit that is not exempt as
set forth hereinafter. Exempt from this section are housing units of two units
or less in which the owner of the premises resides. Housing units newly constructed
and rented for the first time are exempted, and the initial rent may be determined
by the landlord. All subsequent rents will be subject to the provisions of
this section.
HOUSING SPACE
That portion of a dwelling, rented or offered for rent for living
and dwelling purposes to an 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.
JUST CAUSE
Action on the part of the landlord in refusing to let, rent, relet
or rerent to a tenant or basis for dispossess for any one or more of the following:
A.
Failure on the part of the tenant to pay rent due and owning under the
lease when the same is oral or written.
B.
Disorderly or disturbing noises or conduct on the part of the tenant
that destroys the peace and tranquillity of the landlord, other tenants or
other persons living in or about the neighborhood.
C.
Intentional or persistent neglect, damage or injury by the tenant to
the property of landlord.
D.
Constant violation by the tenant of the rules and regulations of landlord
if signed by tenant or incorporated in the lease with a copy being given to
tenant.
E.
Substantial breach of the terms and conditions of the lease agreement
by the tenant.
F.
Owner seeks to occupy premises himself/herself.
G.
Owner seeks to close premises down without permitting any further occupancy.
LEASES
Any contract or agreement to let or hire for rent a housing space,
and garage or parking space, if any, whether it is in writing or oral.
MAXIMUM RENT
The highest legal rent payable and includes all rent increases authorized
under this chapter to date.
MONTH-TO-MONTH TENANT
A tenant whose right to occupancy of the premises is renewable monthly,
and this right may be evidenced by a written agreement or it may depend upon
a simple oral agreement.
PERCENTAGE DIFFERENCE
That factor arrived at by dividing the point change between the two
appropriate consumer price indexes by the lower index.
PERIODIC TENANT
A tenant whose right to occupancy of the premises is for a term certain,
and is evidenced by a written agreement commonly known as a "lease."
PRICE INDEX
The Consumer Price Index (all items) for the region of the United
States of which northeastern New Jersey is a part, published periodically
by the Bureau of Labor Statistics, United States Department of Labor.
TENANT AT WILL
A tenant whose right to occupancy of the premises is for an uncertain
period, arrived at solely by oral agreement, and subject to the will of the
landlord.
Capital improvement(s) for vacant dwellings. Notwithstanding the provisions of §
177-3, the rent between a landlord and a tenant, to whom this chapter is applicable, shall hereafter be determined by the provisions of this section should the option provided herein be selected by the landlord. The landlord may seek and obtain a rent for a vacant dwelling without limitation, provided that the following conditions are met:
A. The value of the dwelling shall be determined by the
Borough Assessor. The Assessor shall execute a certification as to the amount
equal to 15% of the value of the dwelling.
B. The landlord shall spend an amount equal to at least
15% of the value of the dwelling for capital improvements to that dwelling.
A "capital improvement" shall be defined as those permitted pursuant to the
Federal Internal Revenue Code codified as 26 U.S.C.A., § 263, and
the rules and regulations relating thereto. Generally, a capital improvement
shall be an expenditure that adds to the value or useful life of the dwelling
and is not allowed as an expense deduction by the landlord. Capital improvements
shall include but not be limited to new construction relating to the dwelling,
new bath fixtures, kitchen cabinets, kitchen fixtures, air-conditioning installation,
heating system installation, electrical rewiring, electrical outlets, replacement
of doors, windows or other fixtures. Incidental repairs which are defined
as expenditures that keep property in an ordinarily efficient operating condition
and do not add to its value or appreciably prolong its useful life shall not
be deemed capital improvements under this chapter.
C. In the event the landlord elects to make a capital improvement(s)
under this chapter, the landlord shall apply to the Rent Leveling Board for
approval. The Rent Leveling Board shall establish the appropriate forms for
submission to it which shall include but not be limited to the following:
(1) Certification by Tax Assessor as to full value of the
dwelling and 15% thereof.
(2) An itemization of the specific capital improvements that
the landlord desires to make.
(3) The rent charged by the landlord to the last tenant that
occupied the dwelling to be improved.
(4) Such other reasonable and necessary information that
is required by the Rent Leveling Board for the application.
D. Upon submission of a completed application by the landlord,
the Rent Leveling Board shall render its determination no later than the second
regular meeting of said Board after the date of the submission of a complete
application.
E. The capital improvement(s) shall not be deemed complete
until an inspection is made by the appropriate borough official with respect
to the improvement(s), to wit: Construction Code Official or any Subcode Official,
Code Enforcement Officer, etc. The landlord shall submit to the Rent Leveling
Board a certification of satisfactory completion of the improvement(s) by
these officials. Upon receipt, the Rent Leveling Board shall issue final approval
for the capital improvement(s) and the landlord shall then be entitled to
enter into a lease agreement with a tenant for such ever rent as shall be
negotiated between them.
F. Once the new base rent pursuant to §
177-4 is established, the limitation with respect to any rental increases set forth in §
177-3 shall apply.
G. A landlord may only elect to implement a capital improvement and receive the increase set forth in Subsection
E hereof once in any five consecutive years.
H. In any calendar year, a landlord may only elect to implement
a capital improvement under this chapter for not more than 15% of the total
number of dwellings in the respective complex where they are located.
The base rent shall be deemed to be lawful rent for the housing space
which was in effect on July 1, 1982, plus any increases which have been adjudicated
by the Rent Leveling Board as allowable under the provisions of this chapter.
Neither a periodic tenant whose tenancy is for less than one year, nor
a tenant at will shall suffer or be required to pay more than one rent increase
within any single twelve-month period.
Escalator clauses, and clauses which require the tenants to assume the
cost of painting or waive their rights in connection with the painting of
the housing space shall be declared null and void. Any clause in a written
lease or any oral agreement in a tenancy at will which ignores, denies or
seeks to subvert the provisions of this chapter or the rules and regulations
and the decisions of the Rent Leveling Board shall be deemed to be against
public policy and shall be null and void; except that agreement to appeal
through the exercise of due process is deemed not to fall within the meaning
of this chapter. The presentation of a lease to a tenant which violates this
clause shall be deemed subject to the penalties of this chapter. A landlord
claiming benefits under the provisions hereof on the basis of a renewal lease
shall present a written lease to the tenant at least 50 days before the new
renewal period date.
Every rental arrangement shall assume a continuation of the present
tax structure in the state. Should the tax structure of the state be modified
so that local property taxes are reduced substantially, any savings accruing
to the landlord shall be refundable to the tenant in proportion to the space
occupied by the tenant to the amount of rentable apace, and such tax reduction
shall result in a reduction of the maximum rent.
There is hereby created a Rent Leveling Board within the borough. The Board shall be constituted as set forth in Chapter
2 of the Code of the Borough of Fair Lawn. Where any regular member is absent from any hearing, the Chair of the Rent Leveling Board shall designate an alternate to sit for the absent member, from the same class as the member missing, i.e., if a landlord member is absent, Alternate 1 shall sit, etc. Once seated in a matter, the alternate shall hear that matter to its conclusion and shall exercise all powers of a regular member, including the power to vote. An alternate may not be designated to sit except for a regular member of the same class. An alternate may attend meetings and participate, but may not cast a vote, on any matter, unless specifically designated to sit for an absent member.
During the term of this chapter, the landlord shall maintain the same
standards of service, maintenance, furniture, furnishings and equipment in
the housing space, dwelling or complex as he/she provided or was required
to provide by law or lease, or by other agreement at the date of the lease
or other agreement was entered into by landlord and tenant. Failure to do
so shall constitute grounds for the tenant to apply to the Rent Leveling Board
for authorization to pay a lower rent than the rent to which the landlord
and tenant had earlier agreed.
The owner of housing space or dwelling being rented for the first time
shall not be restricted in the initial rent he/she charges. Any subsequent
rental increase, however, shall be subject to the provisions of this chapter.
This chapter being necessary for the welfare of the borough and its
inhabitants shall be liberally construed to effectuate the purposes thereof.
Every landlord affected by this chapter shall notify the Rent Leveling
Board of the name of the new tenant and the monthly rental being paid by him/her.
Any person or entity who shall violate the provisions of this chapter
shall, after a summons is issued under the terms hereof, upon conviction,
be punished as follows:
A. For a first offense, by a fine not to exceed $250.
B. For a second offense, by a fine of not less than $100
nor more than $350.
C. For a third or subsequent offense, by a fine of not less
that $250 nor more than $500 or by imprisonment in the county jail for a period
not to exceed 90 days, or both.