A.
Establishment of rent for any housing space governed by this chapter
shall be subject to and within the limitations set forth in the terms
and provisions of this chapter; and it shall be unlawful for any landlord
of such housing space to demand, receive or collect any rent in excess
of that provided for in this chapter, except increases as may be granted
pursuant hereto.
B.
The following housing spaces or dwelling units shall not be subject
to the terms and provisions of this chapter regarding rent control:
(1)
Any housing space or dwelling unit rented or offered for rent for
the first time after the effective date of this chapter;
(2)
Any housing space or dwelling unit which receives an initial certificate
of occupancy after the effective date of this chapter; and
(3)
Any housing space or dwelling unit constructed in a redevelopment
area in accordance with the provisions of the Local Redevelopment
and Housing Law, N.J.S.A. 40A:12A-1 et seq., except where otherwise
provided in any ordinance designating an area in need of redevelopment
or in a redeveloper's agreement entered into pursuant thereto.
D.
In the event the quarterly report required by Subsection C above discloses the existence of a housing state of emergency, the control provisions of this chapter shall be operative and in full force and effect. If the quarterly report by the Board shows that a housing state of emergency no longer exists, then the control provisions of this chapter shall not be in effect until the quarterly report of the Board shall again disclose the existence of a housing state of emergency.
E.
Notwithstanding anything in this chapter to the contrary, the registration,
registration fee, reports and filing requirements of this chapter
shall remain in full force and effect whether or not there exists
a housing state of emergency as defined herein.
A.
The base rent for rental of housing space and services in dwellings
to which this chapter is applicable is hereby established at the rent
level received by the landlord as of the date this chapter becomes
effective, and no rental increase shall thereafter be instituted except
in accordance with this chapter.
B.
It shall be unlawful for any landlord of a multiple-dwelling housing
space to demand, receive or collect any rental increase more than
once in any twelve-month period; to demand, receive or collect any
rental increase in excess of the limitations established in this chapter;
or to otherwise violate any provision of this chapter; provided, however,
that it shall not be unlawful for any landlord of a housing space
to demand, receive or collect any rental increase which is otherwise
approved and/or authorized in accordance with this chapter.
Establishment of annual rent increases for any housing space
or dwelling unit subject to the provisions of this chapter shall be
determined in accordance with and pursuant to the following procedures:
A.
At the expiration of a lease or the termination of a periodic tenancy,
no landlord may demand, receive or collect a percentage increase in
rent for any housing space which is greater than the percentage increase
established by the Rent Control Board in September of each year for
the next calendar year. The Board shall establish the standard rent
increase by averaging the increases in the consumer price index (CPI)
for urban wage earner and clerical workers as supplied by the United
States Department of Labor for the Philadelphia/New Jersey geographical
region for a twelve-month period beginning in July of the previous
year and ending June of the year in which the Board is making its
determination. No such annual rent increase shall exceed 4%.
B.
Every application for an annual rent increase submitted in accordance
with this chapter shall be approved or denied by the Board at a public
hearing thereon. The Board shall not have jurisdiction to consider
an application for an annual rent increase, and same shall not be
scheduled for hearing before the Board, unless the following procedures
have been met:
[Amended 8-27-2013 by Ord. No. 1313]
(1)
At least 60 days prior to the date of the proposed annual rent increase,
the landlord shall submit a written application to the Rent Control
Board Secretary and shall supply a copy of same to every tenant effected
by the proposed increase;
(2)
The application required by this section shall set forth the unit
or units for which the annual rent increase is being sought, the date
on which the proposed rent increase would become effective and the
amount established by the Rent Control Board for the new rental period;
(3)
The Rent Control Board Secretary shall review the application to
verify the calculations contained in the application and the propriety
and accuracy of the consumer price indicators used in the calculations.
If either the calculations or the consumer price indicators, or both,
used in the application under review are erroneous, the Rent Control
Board Secretary shall recalculate the allowable rent increase, if
any;
(4)
The Rent Control Board Secretary shall notify the landlord, in writing,
within 15 days of the date of the receipt of the application, whether
the proposed rent increase is accurate or, if the proposed rent increase
was inaccurate, of the recalculated allowable rental increase, as
the case may be; and
(5)
The Rent Control Board Secretary also shall verify that any landlord seeking an annual rent increase is in compliance with all other provisions of this chapter, including but not limited to the requirements set forth in Article IV, Landlord Requirements. No annual rent increase shall be approved by the Rent Control Board unless the Board determines, upon a report and/or testimony of the Rent Control Secretary and/or Rent Control Officer, that the landlord is in compliance with all other provisions of this chapter.
C.
Except for hardship increases and capital improvement increases authorized in accordance with this chapter, any rental increase imposed, demanded, received or collected at a time other than at the expiration of a lease or termination of a periodic tenancy shall be void. Any rent increase in excess of that authorized by the provisions of this chapter shall be void. No landlord shall increase the rent to any tenant more than once in any twelve-month period, except in the case of landlord hardship increases pursuant to § 189-10.
D.
The landlord shall remain in substantial compliance with the Regulations for Maintenance of Hotels and Multiple Dwellings (Chapter 10 of Title 5 of the New Jersey Administrative Code) and shall so certify. In the event that the landlord is not in substantial compliance with that regulation or this chapter, or has not maintained the dwelling in accordance with the filed schedule of maintenance required by § 189-15, no increase in rents shall be permitted under this or any other section of this chapter.
E.
Any rental increase granted hereunder shall go into effect in the
first month following final disposition of the application for same.
The effective date of an increase granted hereunder shall in no way
alter the regular date of the annual increase for any tenant affected
thereby, even if the effective date is different than the tenant's
regular annual increase date. Notwithstanding the above, the Board,
in its sole discretion and for good cause shown, may approve a rent
increase application to be effective on the date requested by the
landlord or such other date as the Board deems appropriate. In no
event, however, shall the Board approve an increase for a period of
time more than three months after the meeting of the Board at which
an application for annual rent increase is considered. For instance,
at a January meeting, the Board may not approve increases for any
month after April of that year.
[Amended 8-27-2013 by Ord. No. 1313]
F.
In any
instance where a landlord’s compliance with this section has
been raised as an issue before and/or by the Board, the burden of
proof shall rest with the landlord to demonstrate, to the Board’s
satisfaction, in its sole discretion, that rent increases have not
been illegally collected in violation of the provisions of this chapter.
[Added 8-27-2013 by Ord.
No. 1313]
Whenever, during the existence of a housing state of emergency,
a landlord shall determine that reasonable and necessary operating
expenses (computed in accordance with the provisions of this chapter)
are greater than 60% of the gross maximized annual income of a housing
space or dwelling unit in common ownership and operation by the same
landlord, then such landlord may make application to the Board for
an increase in rent on account of hardship.
A.
Hardship application.
(1)
The landlord shall file a hardship application with the Board as
provided in this section, together with all certifications required
herein, including a certification by the landlord and/or his agent
to demonstrate that the landlord is entitled to an increase in rents
based on hardship.
(2)
The application shall include the amount of increase and percentage
of increase requested, together with all necessary information and
documentation to support the request for a hardship increase, including
but not limited to:
(3)
At the time the landlord files a hardship application in accordance
with this section, the landlord simultaneously shall notify, in writing,
all tenants affected by the hardship application that such application
has been filed and is available to any tenant requesting the same.
(4)
A landlord's application filed pursuant to the requirements of this chapter shall be accompanied by an application fee as provided in Chapter 111, Fees.
(5)
Escrow deposit.
(a)
A hardship application filed pursuant to this chapter shall
be accompanied by an escrow deposit computed by multiplying the number
of proposed affected housing spaces by $5 per housing space, but in
no event shall the escrow deposit be less than $1,000;
(b)
The total escrow deposit collected pursuant to Subsection A(5)(a) above shall be placed in an escrow account by the Township Clerk, to be applied to the payment of any services rendered by an accountant, auditor, real estate appraiser or other professional retained by the Board pursuant to the provisions of this chapter to aid or assist in the Board's review and consideration of a hardship application submitted pursuant to this section; and
(c)
The balance, if any, of the amount deposited in the escrow account
after payment to such persons shall be returned to the party depositing
the money in escrow upon final decision of the Board.
B.
Landlord certification. In any application for an increase of rent
on the basis of hardship, the landlord shall specifically certify
that:
(1)
The dwelling and all housing space or dwelling units therein are
in a safe and sanitary condition and in substantial compliance with
all local and state health and building codes. By way of verification
as to compliance with the aforesaid codes, the applicant shall, within
30 days of the date of filing of any application for relief pursuant
to this section, submit a report of inspection conducted by the Rent
Control Officer. The aforesaid report of the Rent Control Officer
shall set forth either that the dwelling or dwelling units are in
substantial compliance with the Regulations for the Maintenance of
Hotels and Multiple Dwellings or shall set forth the circumstances
and regulatory provisions serving as the basis for noncompliance with
the aforesaid regulations;
(2)
The landlord is in substantial compliance with all state and local
laws pertaining to tenant's rights; and
(3)
All rentals collected and charges imposed, including those arising
out of any nonresidential use, result from arm's-length transactions.
C.
Compliance by landlord. If, at any time during the course of consideration of an application for an increase in rent due to hardship pursuant to the provisions of this section, the Board shall determine that the landlord is not in substantial compliance with any or all of the above, the Board may temporarily withhold further consideration of the application for a hardship increase until such time as the landlord has corrected any such deficiency. The time period for the Board to make a decision as set forth in Subsection F below will be extended if the Board makes a determination that the landlord is not in substantial compliance with the above provisions.
D.
Gross maximized annual income. In computing gross maximized annual
income under this chapter, the following limitations shall apply in
all cases:
E.
Reasonable and necessary operating expenses. In computing reasonable
and necessary operating expenses under this chapter, the following
limitations shall apply in all cases:
(1)
Property taxes shall be limited to amounts actually paid, including
those in escrow for appeal;
(2)
Repairs and maintenance shall be reasonable and necessary;
(3)
Legal and auditing expenses shall be limited to reasonable and necessary
costs of the operation of the property and shall be itemized on the
application; provided, however, that no legal expenses or auditing
expenses shall be allowed as a deduction which do not directly result
from the landlord-tenant relationship;
(4)
Management fees shall be limited to actual services performed in
the rental of residential housing space and shall not exceed 6% of
gross maximized annual income;
(5)
Salaries not included in management fees shall be limited to actual
services performed and amounts for similar positions in the area,
including rental value, if included in income and expenses and wages
and benefits paid;
(6)
Advertising expenses shall be limited to actual costs that are reasonable
to ensure occupancy and personnel employment needs of the landlord;
(7)
Utilities, including but not limited to gas, electric, water and
oil, shall derive from arm's-length transactions, and the landlord
shall demonstrate that all reasonable efforts to conserve energy and
fuels have been used;
(8)
Insurance shall be prorated over the duration of any insurance policies
and shall not include the landlord's life, medical or other personal
policies;
(9)
No penalties or fines of any kind, nor interest on such penalties
and fines, shall be allowed;
F.
Public hearing; time of decision.
(1)
The Board shall hold a public hearing within 45 days of receipt of
a completed hardship application, or 30 days in the event of federal-
or state-involved housing.
(2)
The Rent Control Board Secretary shall notify the landlord of the
date of public hearing at least 14 days before the date set by the
Board. At least 10 days before the hearing date, the landlord shall
provide, in writing, notice of said hearing to all tenants affected
by the hardship application.
(3)
If, due to no fault of the landlord, the Board cannot hear the application
within 45 days and reach a determination 30 days thereafter, the landlord
shall be entitled, upon notice to the tenants affected, to collect
the amount requested, provided that the amount does not exceed 10%
above the current rent. If the amount exceeds 10% above the current
rent, the landlord shall be limited to only 10% until the determination
has been reached by the Board; provided, however, that the Board may
proceed to stay the increase by resolution if, in fact, the delay
has been contributed to or caused by the conduct of the landlord or
if the landlord agrees to such stay.
(4)
Any increase paid by the tenant pursuant to Subsection F(3) above shall be paid without prejudice, and if the Board determines that a lesser amount of increase or no increase should be allowed, the tenant paying the increase shall be permitted to an immediate deduction or offset against rents becoming due and owing equal to all excess rents paid after written notice to the landlord of the amount involved.
(5)
If, after a full hearing, the Board shall determine that the landlord
is in full compliance with the provisions of this chapter, it shall
permit a rental increase sufficient to establish the sixty-percent
relation of fair net operating income, and any increase granted under
a fair net operating income formula shall be prorated to all of the
units of housing space within the dwelling based upon the number of
rooms per unit or unit space.
G.
General limitations.
(1)
A hardship increase shall be for a period not less than one year;
(2)
A hardship increase shall be paid in equal monthly payments for the
term approved by the Board and shall be payable on the same date as
the payment of the rental charge;
(3)
No more than one hardship increase shall be granted in any one twelve-month
period, except in demonstrated extraordinary circumstances beyond
the landlord's control occurring subsequent to an approved hardship
increase;
(4)
No hardship increase shall be granted for any housing space if the
dwelling or any part thereof shall be subject to violations issued
by any government agency prior to the filing of the application seeking
the increase; provided, however, that the Board may waive this provision
upon a showing by the landlord that the landlord has attempted to
rectify the violation but has been unable to do so due to conditions
beyond his reasonable control; and
A.
When application required.
(1)
A property owner shall be entitled to recover 50% of the cost of
a mandated capital improvement, as defined below. Upon completion
of any mandatory capital improvement project, a landlord shall apply
to the Rent Control Board, which shall determine the true cost of
such improvement and shall establish an amortization period. For purposes
of this section, a "mandated capital improvement project" shall be
defined as a capital improvement mandated by any governmental agency
or any of the following:
(a)
Wiring that substantially increases electrical capacity;
(b)
New insulation that substantially improves energy efficiency;
(c)
Storm windows and doors which do not replace existing storm
windows or doors;
(d)
Installation of a new heating plant that substantially increases
energy efficiency; or
(e)
Installation of a complete new roof.
(2)
For any major capital improvement other than one as set forth in Subsection A(1) above, the landlord shall file with the Board an application for permission to charge tenants a capital improvement surcharge.
(3)
In order for any improvement to be considered a capital improvement for purposes of this section, such improvement must be treated as a capital improvement on the landlord's federal income tax return, a certified copy of which shall be supplied to the Board either with the application as required in § 189-11B below or upon request of the Board.
B.
Application requirements.
(1)
The landlord shall make application to the Board as provided in this
section, together with all certifications required herein, including
a certification by the landlord and/or his agent to demonstrate that
the proposed or completed capital improvement was necessary and that
the projected or actual cost of same was the lowest reasonable cost
for the proposed or completed improvement.
(2)
An application filed pursuant to this section shall include the following:
(a)
The total cost of the completed or proposed capital improvement;
(b)
The number of years necessary to recover costs as claimed by
the landlord for federal income tax purposes;
(c)
The average annual cost of the improvement;
(d)
The total number of rooms in the dwelling for which the capital
improvement is required;
(e)
The total number of rooms or unit spaces occupied by the tenant;
(f)
A certified, true, complete copy of the applicant's federal
income tax return wherein such improvement is reflected; or, if such
improvement is made subsequent to the approval of the Board, the applicant
shall supply to the Board at the time it is filed with the Internal
Revenue Service a certified true complete copy of the first federal
income tax return filed thereafter wherein such improvement is reflected;
(g)
A certification executed by the landlord verifying that the
landlord has signed contracts with such contractors as will perform
the work or provide the services to complete the proposed improvement,
subject only to approval of the landlord's capital improvement
surcharge application by the Board;
(h)
A completed application for a building permit, which shall be
submitted to the Construction Official of the Township of Haddon,
in the event that the capital improvement surcharge is granted by
the Board;
(i)
Such other books, records and reports as the Board shall request
in order to properly consider the application; and
(3)
Contemporaneously with or prior to the filing of an application for a capital improvement surcharge in accordance with this section, the landlord shall notify, in writing, each affected tenant that such application has been or will be filed and is available to any tenant requesting the same; provided, however, that the notice required by this section shall include the information required by Subsection B(2)(a) through (e) above.
(4)
A landlord applying for a capital improvement surcharge shall certify
that the landlord is not reducing, has not reduced and will not reduce
maintenance in order to complete the capital improvement.
C.
Computation of capital improvement surcharge. For purposes of calculating
a capital improvement surcharge, the cost of such improvement shall
be divided by the applicable cost recovery period, as stated above.
The resulting average annual cost of such improvement shall be divided
by the total number of rooms or unit spaces in the dwelling to arrive
at the average annual cost per room or unit space, which amount shall
be multiplied by the number of rooms/unit spaces occupied by the tenant
to arrive at such tenant's share of any capital improvement surcharge.
The capital improvement surcharge shall not exceed 10% of the tenant's
presurcharge rent for each approved capital improvement.
D.
Collection of capital improvement surcharge; surcharge not rent.
(1)
A landlord shall be allowed a surcharge for completed approved capital
improvements for those projects completed in the year of application
and the preceding two years.
(2)
All capital improvement surcharges shall be paid in equal monthly
payments for the period of the surcharge on the same date as the payment
of the rental charge. All tenants shall be notified of the calculations
involved in determining the surcharge.
(3)
Upon approval of any capital improvement surcharge, the landlord
may, subject to applicable law, immediately begin collecting from
the tenants the approved surcharge.
E.
Upon completion of any capital improvement approved by the Board
pursuant to this section, the landlord shall certify to, and supply
such documentation thereof as the Board shall reasonably request,
all charges and costs incurred in completing the improvement, and
the Board shall require that any previously approved surcharge be
adjusted in accordance therewith.
F.
Any other provisions of this chapter notwithstanding, interest charged the landlord for an approved capital improvement shall be allowed as an operating expense under § 189-10E(10).
A.
In addition to any rent increase or other surcharge permitted by
this chapter, and subject to the requirements of this section, landlords
shall be permitted to pass through to tenants as an additional surcharge
any increase in the following costs and/or expenses:
B.
Any landlord seeking to impose a rent surcharge under this section shall be required to submit an application to the Board in accordance with Subsection C below and shall simultaneously give notice to the tenant(s) and the Rent Control Board Secretary of the calculations involved in computing the proposed property tax, water, sewer or heating fuel surcharge. The notice required by this section shall include the following information:
(1)
The present property tax, water, sewer or heating fuel cost, as the
case may be, for the dwelling(s);
(2)
The property tax, water, sewer or heating fuel cost, as the case
may be, for the dwelling(s) for the previous year;
(3)
The number of square feet of floor space within the dwelling(s);
(4)
The area, calculated in square feet, of all common areas within the
dwelling(s); and
(5)
The property tax, water or sewer increase per square foot of floor
space, or in the case of a heating fuel surcharge, the amount of the
fuel increase per heated cubic foot of housing space for each dwelling
unit;
(6)
The proportionate share of said increase attributable to the common
areas; and
(7)
The proposed surcharge to be paid by each tenant, calculated as follows:
(a)
The property tax, water or sewer increase per square foot of
floor space, or in the case of heating fuel surcharge, the amount
of the fuel increase per heated cubic foot of housing space for each
dwelling unit occupied by the tenant; plus
(b)
Each such dwelling unit's proportionate share of the cost
increase attributable to the common areas, calculated by dividing
the total area within the dwelling which is used as a common area
available to all tenants by the number of dwelling units within the
dwelling.
C.
Applications for permitted surcharge; procedure.
(1)
Pursuant to Subsection B above, every landlord must submit to the Board a written application for a surcharge permitted by this section. Said application shall be served upon the Rent Control Office Board Secretary by certified mail, return receipt requested, or by personal delivery to the Rent Control Office Board Secretary. The landlord shall pay $10 per unit per application. Every application for the imposition of such surcharges shall set forth the following:
(a)
The property is in substantial compliance with all state and
local building/maintenance codes. The landlord shall furnish a copy
of the last report of inspection or shall request an inspection of
the unit in conjunction with this application in order to demonstrate
such compliance;
(c)
All taxes (if tax surcharge is sought) or water and sewer payments
(if water and/or sewer surcharge is sought) have been fully paid and
are current or that an appeal of such assessments has been filed,
in which case a copy of the appeal also shall be submitted.
(2)
Upon receipt of an application for additional surcharge(s) under
this section, the Rent Control Board Secretary shall, within seven
(7) days, notify the landlord of any deficiencies in the application.
Said notification shall be sent to the landlord by certified mail,
return receipt requested. The Board shall take no further action on
the landlord's request to impose surcharges until such time as
all deficiencies are satisfied. Once satisfied, the landlord shall
receive written notice from the Rent Control Board Secretary that
the application is under review, which notice shall be sent by certified
mail, return receipt requested.
(3)
The Board shall review the landlord's calculations for any proposed surcharge, including the information required in Subsection B above, within 30 days from the date the landlord receives notice that the application is under review.
(4)
Such review shall be completed, and a decision shall be issued, at
a meeting of the Board. In the event that the Board approves the requested
surcharge(s), the landlord shall give notice to the tenants of said
approval by ordinary mail and shall serve upon the Rent Control Board
a sworn affidavit evidencing notice of the proposed surcharge on all
tenants. The landlord shall thereafter forward to the Rent Control
Board Secretary the original affidavit of service upon the tenants
by certified mail, return receipt requested.
(5)
In the event the Board approves the application but determines the
landlord's calculations are incorrect, the Board shall correct
the calculations and determine the proper amount of the surcharge
and shall approve the application at the adjusted amounts.
D.
Effective date. An approval issued by the Board in accordance with this section shall become effective within 14 days of service upon the Rent Control Board Secretary of the affidavit required in Subsection C(4) above.
E.
Any permitted surcharge approved in accordance with this section shall continue in effect until such time as there is a decrease in property taxes or a lowering of the assessed evaluation of the property, a decrease in water and sewer charges or a decrease in heating fuel costs. In such case, the tenants shall be entitled to a credit in accordance with § 189-13 of this chapter.
A.
Credits for reduced assessments and decreased heating fuel costs. Tenants of housing space or dwelling units subject to rent control pursuant to this chapter shall be entitled to a credit against rent due and owing for decreases in property tax assessments, water and sewer assessments and heating fuel costs. Apportionment of a credit against rent required by this section shall be calculated in the same manner as a permitted surcharge as set forth in § 189-12B(6).
B.
Rebates on tax appeals.
(1)
In the event that a tax appeal is taken by the landlord for taxes already paid and the landlord is successful in said appeal and taxes are reduced, the tenants of the affected dwelling unit(s) shall receive 75% of said reduction in the form of a rebate. The amount of each tenant's rebate shall be determined after deducting all reasonable expenses incurred by the landlord in prosecuting said appeal and shall be calculated in the same manner as described in § 189-12B(6).
(2)
The landlord shall be deemed to have received his rebate upon his
receipt thereof from the Township or upon the execution of any agreement
with the Tax Assessor to credit the amount of the reduced taxes to
any outstanding tax bill of the landlord.
(3)
The landlord shall provide the tenants written notice that they will
be receiving a rebate within 14 days from when the landlord receives
notice that the property tax appeal was successful or 14 days from
the landlord's execution of an agreement with the Tax Assessor,
whichever the case may be. The notice required by this section shall
include the amount of the rebate received by the landlord and the
computation as to how much the tenant is entitled.
(4)
The amount due the tenant shall be forwarded to the tenant within
thirty (30) days from the date the landlord actually receives the
rebate.
(5)
In the event that the landlord fails to forward the tenant's
share of any property tax rebate within the designated period, the
tenant may file a complaint with the Rent Control Board.
