[HISTORY: Adopted by the Township Council
of the Township of Lopatcong 6-16-1982 by Ord. No. 363 (Ch. 87 of the 1974 Code
of the Township of Lopatcong). Amendments noted where applicable.]
For the purpose of this chapter, the terms used
herein are defined as follows:
[1]The term "base rent" shall mean the present monthly rental,
excluding tax surcharge, hardship surcharge, and improvement surcharge
for the given unit. The prevailing base rent for each individual unit
is that rent which is contained in the actual rent roll filed with
the Rent Control Board, or as otherwise defined in this chapter. Thereafter,
"base rent" shall mean the base rent charged for the prior twelve-month
period, excluding tax surcharge, hardship surcharge, and improvement
surcharge for the given unit.
[Added 6-6-1984 by Ord.
No. 1984-5; amended 3-1-2006 by Ord. No. 2006-7; 8-5-2015 by Ord. No. 2015-08]
Includes amounts paid or incurred to add to the value or
to substantially extend the useful life of the landlord's property,
but shall exclude amounts paid for incidental repairs, maintenance,
replacement of fixtures, appliances, equipment, including conversion
of heating units, and any other work that is merely replacement, repair,
rehabilitation or that is required by law.
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. Excluded from this definition and from the operation
of this chapter are motels, hotels and similar types of buildings.
Also excluded are housing units which are fewer than three units under
common ownership. Units of three or more that are part of a planned
community or other development existing on one lot or multiple adjoining
lots or with common elements shall be included in this definition
and the operation of this chapter, regardless of the number of units
per structure.
[Amended 11-3-2021 by Ord. No. 2021-11]
The prevailing rental applicable to each dwelling unit the
Township as of April 4, 2001, and as may be increased in accordance
with this chapter.
[Amended 3-1-2006 by Ord. No. 2006-7]
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.
[Added 12-15-1982]:
INVESTMENTThe actual cash contribution of the landlord at the time of closing of title and any principal payments to outstanding mortgages.
FAIR RETURN ON INVESTMENTThe percentage of return on an investment. "Return" shall be measured by the net operating income before depreciation and excluding mortgage principal payments. "Fair return" shall be 6% above the maximum passbook demand deposit savings account interest return available in the municipality.
[Amended 6-6-1984 by Ord. No. 1984-5][2]
[1]
Editor's Note: The definition of "available for rent to tenant,"
which immediately preceded this definition, was repealed 12-15-1982.
[2]
Editor's Note: The former definitions of "just
cause" and "net operating expenses (NOE)," which immediately followed
this definition, were repealed 12-15-1982.
[Amended 7-2-1997 by Ord. No. 1997-09; 11-7-2001 by Ord. No.
2001-29; 3-1-2006 by Ord. No. 2006-7; 8-5-2015 by Ord. No. 2015-08]
Establishment of rents between the landlord and tenants to whom this chapter is applicable shall be determined by the provisions of this chapter. Except as provided in §§ 173-2.1 and 172-23, no landlord shall request or receive a percentage increase in rent which is greater than 3% per annum in the next ensuing year. Said limitation of 3% increase per annum shall apply to only occupied units. Vacant units are governed by § 173-2.1. Those tenants who provide their own heat or the cost of the fuel shall not receive an increase in any one year greater than 2.8% per annum.
[Added 8-5-2015 by Ord.
No. 2015-08]
Notwithstanding the provisions of § 173-2, a landlord shall be entitled to negotiate a mutually agreeable fair rental with a prospective tenant in accordance with the following:
A.
Vacancy decontrol. Upon the voluntary, uncoerced vacation or court-ordered
eviction of any tenant for which rent increases are controlled by
the terms of the Township of Lopatcong's rent control ordinance, and
upon compliance with this section, at the time of rerental of a unit
pursuant to this section, a landlord may negotiate a rental with the
proposed new tenant at a level mutually agreeable between the landlord
and the proposed tenant.
B.
The landlord must file with the Rent Leveling Board, and provide
a copy to the tenant in occupancy, if any, a "vacancy decontrol certification"
within 15 days after entering into a lease agreement and accepting
a deposit from a new tenant, which shall include the following information:
(1)
Property address;
(2)
Apartment number;
(3)
Vacating tenant's monthly base rent;
(4)
New tenant's monthly rent;
(5)
Name of landlord;
(6)
Address of landlord;
(7)
Telephone number of landlord;
(8)
A statement certifying that the vacancy was uncoerced or as
a result of court-ordered eviction which statement shall be provided
to any tenant then occupying the subject apartment.
C.
Vacancy decontrol certifications and the statement provided to any tenant then in occupancy shall be approved by the Rent Leveling Board unless a written objection objecting to the certification is filed with the Rent Leveling Board within 10 days of filing a complete certification. In the event an objection is filed, the procedures in § 173-8 shall apply.
D.
Once a unit has received vacancy decontrol pursuant to this section, it shall be subject to the remaining provisions of the Chapter 173 of the Township Code.
E.
Notwithstanding the provisions of § 173-5 of this chapter, the filing of a vacancy decontrol certification at the beginning of a lease term shall be deemed sufficient registration of the renal amounts for the given lease term.
F.
Antiharassment provision. It shall be impermissible for a landlord,
or his agents, to willfully do or commit or cause to be done or committed
any of the following: harassment, intimidation or other similar action
to a tenant with the intent to cause a tenant to vacate the rental
unit; any reduction by the landlord in services with the intent to
cause the tenant to vacate the premises; and any vacation of the premises
which is coerced by the landlord; provided, however, that this provision
shall not limit a landlord, or his agents, from any act specifically
authorized under the laws of the State of New Jersey.
G.
Violation antiharassment provision. In addition to the penalties set forth in § 173-17, a willful violation of this subsection shall subject the landlord to: (i) on the first offense, loss of privilege to apply for vacancy decontrol at the subject property for a period of not less than one year; (ii) on the second offense, loss of privilege to apply for vacancy decontrol at the subject property for a period of not less than two years; (iii) upon a finding of any further offenses, loss of privilege to apply for vacancy decontrol at the subject property for a period of five years. The complaint for violation of this provision shall be brought in the Municipal Court for the Township of Lopatcong in accordance with Chapter 173.
[Amended 3-1-2006 by Ord. No. 2006-7]
Any rental increase at a time other than at
the expiration of a lease or termination of a periodic lease is prohibited
and void. Any rental increase not authorized by the provisions of
this chapter is prohibited and void.
[Amended 7-2-1997 by Ord. No. 1997-09; 5-29-2001 by Ord. No.
2001-18; 3-1-2006 by Ord. No. 2006-7]
Any landlord seeking an increase in rent shall
first notify that tenant by ordinary mail, with proof of mailing to
be evidenced and corroborated by an affidavit of mailing, of the calculations
involved in computing the 3% against the previous year’s base
rent. The notice shall be sent not later than 60 days prior to the
date that the increased rent sought is to be effective, and the notice
shall detail the prior rent, the amount of the increase, expressed
in whole dollars (that figure shall be rounded with .49 dollars and
below rounded down to the nearest whole dollar figure and .50 dollars
and above rounded up to the nearest whole dollar figure) and the new
base rent sought. Rental increases are expressly limited to a single
increase per year per unit, regardless of whether the unit is occupied
or vacant.
A.
B.
This registration statement is a public record and
shall be available for inspection at the office of the Township Clerk
during normal business hours.
C.
All changes, including rent increases and the dates
thereof, shall be reported to the Rent Leveling Board by the landlord
within 30 days of the change.
D.
For failure to properly register or failure to properly
register all changes as provided herein, no landlord shall be permitted
to charge or collect any rental increase, surcharge or any other charge
until such time as all such registration requirements are met.
E.
Notices for rent increases, surcharges or any other
charges served before compliance with these registration requirements
shall be of no force and effect.
F.
A complete rent roll for the immediate preceding year
will be submitted to the Rent Leveling Board by January 10 of each
following year. Said rent rolls will include the rental status of
all units and as to all occupied units the amount being charged for
that unit. The failure to timely submit such rent roll will be considered
a violation of this chapter and punishable in accordance with its
provisions.
[Added 3-1-2006 by Ord. No. 2006-7]
[Amended 3-1-2006 by Ord. No. 2006-7]
If, after 30 days of a determination by the
Rent Leveling Board resulting in a refund of moneys to a tenant, the
landlord has failed or neglected to pay the refund, then the tenant
may deduct the refund from the next rental payment or payments if
necessary. Any retaliatory actions taken by the landlord shall be
considered a further violation of this chapter and punishable in accordance
with its provisions.
A.
From the effective date of this chapter, no landlord
may demand or receive any fees for any new services or for any services
previously provided without fees.
B.
From the effective date of this chapter, any existing
fees presently charged by the landlord may not be increased for any
reason under this chapter. Any landlord objecting thereto and seeking
to increase an already existing fee may make application for the same
to the Rent Leveling Board setting forth the present fee, the service
provided, the amount of the increase sought and the reasons for seeking
an increase, including documentation of any costs claimed to be the
basis for seeking the increased fee. In no event shall the fee be
increased in an amount greater than the automatic yearly increase.
A.
The Rent Leveling Board shall hold regular meetings
every other month on the third Thursday at 7:00 p.m. The meetings
shall be held during the following months: January, March, May, July,
September and November. Special meetings may be called by the Chairperson
or by a majority of the members on three days' notice to all Board
members. The public shall be notified at least two days in advance
of any special meeting.
[Amended 3-5-2003 by Ord. No. 2003-5; 12-7-2005 by Ord. No.
2005-23; 10-4-2006 by Ord. No. 2006-23]
C.
Two Board members shall constitute a quorum for the
purpose of doing business.
[Amended 4-4-2007 by Ord. No. 2007-06; 6-12-2007 by Ord. No.
2007-15]
D.
For any alleged violation of the sections within this
chapter there shall be a hearing before the Rent Leveling Board with
notice to any landlord by regular and certified mail. Notice shall
also be forwarded to any complaining tenant that would be affected
by the decision.
[Amended 8-7-2002 by Ord. No. 2002-14]
E.
The notice shall indicate the date, time and place
of the hearing and shall furthermore list the alleged violation by
reference to the section.
[Amended 8-7-2002 by Ord. No. 2002-14]
F.
The owner and parties in interest shall be given the
right to file an answer to the complaint and to appear in person or
by their attorney and give testimony at the time and place fixed in
the complaint, and that the rules of evidence prevailing in courts
of law and equity shall not be controlling in such hearings.
[Amended 8-7-2002 by Ord. No. 2002-14]
G.
A notice of a hearing, giving the hearing date, time
and place, shall be sent by the Rent Leveling Board to attorneys or
parties at least 10 days prior to the hearing date.
H.
Each determination of the Board shall be issued in
the form of a resolution, and it shall set forth findings of fact,
the decision, the reasons for the decision, the amounts granted, if
any, and the effective date, and a copy of said resolution shall be
mailed to the parties to the action.
[Added 5-1-2013 by Ord. No. 2013-04]
If the landlord shall determine that the allowable base rent
is not supported by the current market conditions and/or economic
climate, the landlord shall be entitled to reduce the rent on a unit
without disturbing the maximum allowable rent under this chapter.
B.
The decreased rental amount shall not become the new base rent as
provided in this chapter, instead it will be calculated separate and
apart from the base rent (maximum allowable rent).
C.
The landlord shall notify the Township in writing each time it wishes
to depart from the rent roll. Notice shall be provided to the Township
within 10 days of the new lease or renewal of a lease. Notice shall
include a brief explanation of the reason for the decrease, i.e.,
market adjustment, increase freeze for senior citizen or disabled
person.
D.
The landlord's annual rent roll as required under § 173-5F must include two entries for each unit which utilizes a lower rent under this section: actual rent charged; and allowable rent under this chapter.
E.
The landlord shall be permitted to increase rents previously decreased
under this section to the maximum allowable rent under this chapter
at any time provided that the increase is done at the beginning of
a new lease term.
F.
The Township may rescind this section by ordinance if, at any time,
it has determined that the current economic conditions have changed
such that this section is no longer necessary. If this section is
rescinded, the landlord will be required at the expiration of each
lease to increase the rent charged to the base rent in order to continue
protecting the maximum allowable rent.
[1]
Editor's Note: Former § 173-9, Real
estate tax refunds; deductions, as amended, was repealed 6-12-2007
by Ord. No. 2007-16.
A.
Financial hardship.
[Amended 12-15-1982]
(1)
In case of financial hardship where it is clear that
the rental income for the residential property cannot meet mortgage
requirements, maintenance costs or otherwise allow the landlord to
obtain a fair and reasonable return, the landlord may appeal to the
Township Rent Leveling Board, as established herein, for appropriate
rental increases indicated by fiscal requirements. The Board may grant
hardship increases to landlords to meet commitments and reasonable
maintenance costs. Prior to any such appeal to the Board, landlords
must send, by certified mail, return receipt requested, addressed
to the occupant of each apartment or dwelling unit, a notice of such
appeal, setting forth in detail the basis for such appeal.
[Amended 3-1-2006 by Ord. No. 2006-7]
(2)
Any increase granted pursuant to this section shall
be built into base rent for purposes of calculating future rate increases.
(3)
In any hardship request, the Board shall determine
the reasonableness of the landlord's data, figures and calculations
and may, in its discretion, make adjustments that it deems necessary.
(4)
The Board may refuse to grant a hardship increase
if the property is not in substantial compliance with the state and
local building codes. "Substantial compliance" means 90% qualitatively
free of code violations and free of all conditions that threaten health,
safety and welfare, such as lack of heat, hot water or electrical
hazards.
(5)
The Board shall prepare application forms for landlords
seeking hardship increases.
(6)
Within 90 days of the receipt of a completed application,
the Board shall render a decision on the same.
B.
Improvements.
(1)
The landlord may also seek rental increases where major and additional capital improvements or services not previously accorded have been instituted. As a prerequisite for such an increase, notices outlined in Subsection A of this section must be given, which notices must contain the total cost of the completed capital improvement or service; a projection of useful life of the project in years, as claimed by the landlord for purposes of depreciation for income tax purposes; the average cost of the improvement; the total number of square feet of the dwelling or the dwelling complex; the total square feet demised to the tenant; and the capital improvement increase that the landlord is seeking from each tenant.
(2)
On receipt of such an appeal, the Rent Leveling Board
shall determine if the improvement is major in character and, if so,
may permit the increase up to but not in excess of 15% of the amount
of the rent on the hearing date.
[Amended 12-27-2006 by Ord. No. 2006-40; 6-12-2007 by Ord. No. 2007-14]
A.
There is hereby created a Rent Leveling Board within
the Township of Lopatcong to be known as the "Lopatcong Township Rent
Leveling Board." This Board shall consist of three members who shall
be appointed by the Mayor with the approval of the Township Council.
Terms of office of each Board member shall be three years, and members
shall serve without compensation.
B.
Terms of office shall expire on December 31. On the
first year of the Board's existence, one member shall serve until
December 31 of that year, the second member shall serve until December
31 of the following year, and the third member shall serve until December
31 of the third year.
C.
Appointments to unexpired terms of members of the
Rent Leveling Board shall be for the remainder of the term. Reappointment
shall be for three years.
D.
The powers of the Board hereinafter granted and defined
are final. Two members thereof shall constitute a quorum, and the
majority vote of the Board shall be legally sufficient to render a
final determination. All determinations of the Board reflecting the
decision, findings and determination shall be final.
E.
No member of the Rent Leveling Board shall participate
in any decision involving property in which he or she has a financial
interest or has an economic benefit.
The Rent Leveling Board shall implement the
purposes of this chapter in the following manner. It shall:
A.
Promulgate and issue rules and regulations to give
effect to the purpose of this chapter and revise, repeal and amend
the same from time to time. Sufficient copies of the current rules
and regulations shall be on file with the Township Clerk.
B.
Supply information and assistance to the landlords
and tenants and aid them in compliance with this chapter.
C.
Hearings; increases; records.
[Amended 12-15-1982]
(1)
Hold hearings upon reasonable notice; administer oaths;
take testimony from landlords, tenants and other witnesses; record
findings; and render determinations.
(2)
Grant rental increases, decreases, rollbacks, increases
due to hardship and capital improvements and refunds under the provisions
of this chapter.
(3)
Obtain, keep and maintain all available records and
other information necessary to the enforcement of this chapter.
E.
Retain independent experts which the Board, in its
discretion, deems necessary.
F.
Issue complaints in the Municipal Court for violations
of this chapter.
[Amended 9-5-2001 by Ord. No. 2001-25; 12-5-2001 by Ord. No.
2001-38; 3-1-2006 by Ord. No. 2006-7]
During the valid life of this chapter, landlords
shall maintain standards of service and maintenance of all real and
personal property and equipment in and around the housing spaces and
dwellings in accordance with proper standards. The services shall
include but not be limited to the following:
A.
No heat (when provision of the heat is the responsibility
of the landlord).
B.
No water (when provision of water is the responsibility
of the landlord).
C.
No hot water (when provision of hot water is the responsibility
of the landlord).
D.
Roof leaks (such as to make an apartment or dwelling
uninhabitable).
E.
Nonfunctioning stove or refrigerators (where supplied
by landlord).
F.
Faulty electrical fixtures (such as to constitute
a dangerous condition or threat to the health and safety to the tenants).
G.
Faulty plumbing (defined as inoperable fixtures, i.e.,
tub, sink, toilet, kitchen sink).
H.
Inoperable elevator (when inoperability is due to
the neglect of the landlord).
No landlord shall, after the effective date
of this chapter, charge any rents in excess of what he was receiving
from the effective date of this chapter, except as otherwise authorized
by operation of this chapter.
A.
Rent charges by the landlord shall be reduced or rolled
back for any one of the following reasons if so found by the Rent
Leveling Board:
(1)
A decrease in housing space, service, furniture, furnishings,
equipment, recreational facilities or any other service as set forth.
(2)
Failure to perform ordinary repairs, replacements
and maintenance.
(3)
Deterioration of housing space other than normal wear
and tear.
(4)
Charging of a rental in an amount not authorized by
this chapter.
[Added 3-1-2006 by Ord. No. 2006-7]
B.
An individual tenant or group of tenants, on his,
her or its own behalf or on behalf of a tenant organization, may file
a complaint for a rent rollback based upon the foregoing reasons or
any other reason where the value of the housing is reduced.
C.
At the same time, the tenant or group of tenants shall
request an inspection from the local housing or property maintenance
department, which department shall undertake the inspection, submit
a report and be available to the Rent Leveling Board at the hearing.
The report shall not be conclusive but shall be evidential, along
with testimony by the tenants, the landlord and any other witnesses
produced to offer relevant material and testimony. At the request
of the tenant or landlord, upon his or her objection to an inspection
report, the Board may request that the inspector appear at the hearing
to be subject to examination and cross-examination. Notice of an inspection
by the local housing or property maintenance department shall be given
to the landlord, and the landlord or his or its representative may
be present at such inspection.
[Amended 12-15-1982]
D.
Any rent reduction, if granted by the Board, shall
remain in effect until the landlord proves to the Board that the deficiency
has been corrected.
E.
Prior to filing a complaint before the Rent Leveling
Board, the tenant or the tenants' group shall first notify the landlord,
in writing, to request correction by the landlord of said problem.
Failure of the landlord to correct said problem within 15 days of
the notice shall allow filing of a complaint with the Rent Leveling
Board.
[Added 6-6-1984 by Ord. No. 1984-5]
The owner of newly constructed housing space
or dwelling units being rented for the first time shall not be restricted
to the initial rent he charges. Any subsequent rental increase, however,
shall be subject to the provisions of this chapter.
[Amended 2-19-1992 by Ord. No. 1992-02; 3-1-2006 by Ord. No. 2006-7]
Willful violations of any of the provisions
hereof, including but not limited to material misstatements contained
in any of the notices required herein, shall be punishable in the
Municipal Court by a fine of not more than $2,000, imprisonment for
not more than 90 days or a period of community service for not more
than 90 days, or any combination thereof. Violations affecting more
than one leasehold shall be considered separate violations.
This chapter, being necessary for the welfare
of the Township and its inhabitants, shall be liberally construed
to effectuate the general intended purposes.
A landlord renting to a new tenant shall be
required to submit the following information to the tenant, in writing,
and the failure of the landlord to do so shall constitute a violation
of this chapter:
A.
The landlord shall supply a statement to each new
tenant, in writing, that there is a rent control and stabilization
ordinance or code within the Township of Lopatcong, and that copies
of said ordinance are available to the tenant from the office of the
Township Clerk during usual business hours, at a minimal cost.
B.
The landlord shall notify the tenant at the time of
entering into a lease of all charges to be paid for by the tenant,
including the base rent, tax surcharges, hardship surcharges and improvement
surcharges.
C.
The landlord shall permit the tenant to inspect the
leased premises prior to the execution of the rental agreement.
The provisions of this chapter shall expire
three years from the date of the final passage of the same.[1]
[1]
Editor's Note: An amending ordinance adopted
12-15-1982, as well as Ord. No. 1985-07, adopted 6-19-1985, Ord. No.
1988-09, adopted 4-20-1988, Ord. No. 1991-12, adopted 4-17-1991, Ord.
No. 1994-06, adopted 4-6-1994, Ord. No. 1997-10, adopted 7-2-1997,
Ord. No. 2001-7, adopted 4-4-2001, Ord. No. 2003-8, adopted 4-2-2003,
Ord. No. 2006-9, adopted 4-5-2006, Ord. No. 2009-02, adopted 2-4-2009,
Ord. No. 2012-05, adopted 3-7-2012, Ord. No. 2015-03, adopted 4-1-2015,
Ord. No. 2018-01, adopted 2-7-2018, and Ord. No. 2021-01, adopted
2-3-2021, provided that "the original and principal Rent Control Ordinance
of the Township of Lopatcong, as well as all subsequent amendments
and supplements thereto, shall be extended for an additional three-year
period from the date of final passage and publication of this ordinance."
Former § 173-21, Permissible surcharges, added 12-15-1982,
which immediately followed this section, was repealed 6-12-2007 by
Ord. No. 2007-17. Former § 173-22, Security deposit, added
2-6-2002 by Ord. No. 2002-2, was repealed 6-12-2007 by Ord. No. 2007-18.
