Borough of Maywood, NJ Rent Control

Editor's Note: Section 14 of this ordinance provided that it shall take effect immediately upon passage and publication as required by law or on September 1, 1984, whichever shall be later.

§ 261-1 Definitions.

The following terms, whenever used or referred to in this chapter, shall have the following respective meanings for the purposes of this chapter, unless a different meaning clearly appears from the context:

BOARD

The Rent Advisory Board of the Borough of Maywood as established herein.

[Amended 7-14-2005 by Ord. No. 08-05]

KEY MONEY

Any sum of money or other valuable consideration paid in consideration of making a rental unit available to a tenant, other than the payment of advanced rent for which the prospective tenant receives a credit, the payment of a real estate commission not in excess of one month's rent to a duly licensed real estate broker or salesman or the payment of a security deposit in accordance with the limitations and conditions prescribed by law.

LANDLORD

Includes any person, firm, partnership, association, corporation or other entity, and any officer, agent or employee of any of the foregoing, which is the owner, rental agent, manager or otherwise has authority to rent any rental unit to a tenant.

RENT

Includes any and all charges made by a landlord to a tenant in consideration of the tenant's occupancy of a rental unit, and includes parking charges, garage charges or any other charges relating to an automobile owned, maintained or used by a tenant, and also includes utility charges imposed upon or required by the landlord to be paid by a tenant respecting the rental unit.

RENTAL UNIT

Includes all or any portion of the building or structure rented or offered for rent, by individual lease or sublease, for residential occupancy to one or more persons, whether for a stated term or period and whether pursuant to a written or oral lease or sublease, but shall not include any rented or leased space in any one-family, two-family or owner-occupied three-family home. For the purposes of calculating any annual rent increases permitted by Code § 261-4, this term shall also include all parking areas or garages used by the tenant with respect to the occupancy of the rental unit.

[Amended 6-25-1991 by Ord. No. 17-91; 5-23-2000 by Ord. No. 7-00]

TENANT

Includes any lawful occupancy of a rental unit.

§ 261-2 Rent Advisory Board.

[Amended 2-23-1988 by Ord. No. 2-88; 7-14-2005 by Ord. No. 08-05]

There is hereby established a Rent Advisory Board organized as follows:

The Board shall consist of three regular members to be appointed by the Mayor with the consent of the Council, of whom one shall be a landlord, one shall be a tenant, and one shall be a resident of the Borough of Maywood who shall be neither a landlord nor a tenant.

In addition to the three regular members of the Rent Advisory Board, there shall be an alternate landlord member, an alternate tenant member and an alternate resident member who shall be neither landlord nor tenant, who shall be appointed in the same manner as regular members.

An alternate member may participate fully in all proceedings before the Board but may vote only in the absence or disqualification of the regular member of the class for which he or she is designated as the alternate.

Commencing with the next appointed terms of office for members of the Board, the following schedule shall apply:

The regular and alternative homeowner members of the Board shall serve for terms of three years, commencing January 1 of the year of appointment and ending December 31 of the third year. Thereafter, each succeeding term shall be for three years.

The regular and alternate tenant members of the Board shall be appointed for and serve initial terms of two years, commencing on January 1 of the year of appointment and ending on December 31 of the second year. Thereafter, each succeeding term shall be for three years.

The regular and alternate landlord members of the Board shall be appointed for and serve initial terms of one year, commencing on January 1 of the year of appointment and ending December 31 of that year. Thereafter, each succeeding term shall be for three years.

In the event of a vacancy during the terms of any member, the person appointed to fill such vacancy shall serve for the unexpired time remaining in the term of the member whose loss resulted in the vacancy.

The regular homeowner member shall be the Chairperson of the Board and shall preside at all meetings of the Board. In the absence of the regular homeowner member, the alternate homeowner member shall preside. In the absence of both homeowner members, the other members present may designate a Chairperson Pro Tem. In addition, the Board may designate one of its members as Secretary.

two members shall constitute a quorum, provided that at least one member is present from each of two classes.

The Chairperson shall call the first meeting of each year. At such meeting, the Board shall establish an annual schedule of meetings and shall promulgate the same in accordance with the Open Public Meetings Act.[1] Special meetings, upon notice to each of the members and notice to the public in accordance with the Open Public Meetings Act, may be called by the Chairperson or by any other four members.

Editor's Note: See N.J.S.A. 10:4-6 et seq.

§ 261-3 Powers and duties of board.

The Board shall have the following powers, functions and duties:

To establish such procedures, rules and regulations as shall enable the Board to obtain from landlords and tenants an accurate annual statement of rent rolls and income and expense information. This shall include the power to demand from landlords reports of their rents by unit or otherwise, as may be from time to time designated by the Board, and income and expense statements.

To obtain, keep and maintain all available records, data and information regarding rental roll, income and expenses and all other data and information necessary for the task of determining the rents and rent increases in the Borough of Maywood.

[Amended 11-14-89 by Ord. No. 9-89]

To supply information and assistance to landlords and tenants to help them comply with the provisions of this chapter.

(Reserved)[1]

Editor's Note: Former Subsection D, pertaining to hearings, was repealed 7-14-2005 by Ord. No. 08-05.

To report findings and make recommendations to the Mayor and Council as the Board shall from time to time deem necessary respecting the enforcement of this chapter or recommended amendments thereto.

To review annually the rent limitations contained in this chapter and to recommend revisions thereto to the Mayor and Council. In conducting said review and prior to making said recommendation, the Board shall schedule a meeting with tenant and landlord representatives for the purpose of assisting said representatives in arriving at a mutually agreeable limitation in rental increases. The Board shall advise the Mayor and Council of any such agreement. Neither the failure to reach such an agreement nor the failure to conduct such a meeting shall preclude the Board from recommending revisions to the rent limitation contained herein or in any way preclude the Mayor and Council from revising said rent limitations.

(Reserved)[2]

[2]

Editor's Note: Former Subsection G, pertaining to hearings and adjudications relating to rental increases, was repealed 7-14-2005 by Ord. No. 08-05.

To promulgate rules and regulations governing all proceedings authorized by this chapter.

To exercise all powers necessary and appropriate, to the maximum extent permitted by law, to carry out and execute the purposes of this chapter.

§ 261-4 Rent increases.

No landlord shall increase the rent of any rental unit in excess of the increases permitted pursuant to this chapter.

Except as otherwise provided herein, the rent of a rental unit shall not be increased by a percentage of the rent greater than 4 1/4% for each twelve-month period since the last rental increase; provided, however, that in computing each such twelve-month period since the last rental increase, any month during which there was an outstanding notice of violation respecting the premises containing the rental unit, as defined in § 261-7 hereof, shall not be counted.

[Amended 6-24-1986 by Ord. No. 9-86; 11-10-1987 by Ord. No. 12-87; 7-12-1988 by Ord. No. 14-88; 7-11-1989 by Ord. No. 6-89; 6-25-1991 by Ord. No. 17-91; 9-22-1992 by Ord. No. 14-92[1]]

Editor's Note: Section 2 of this ordinance provided that it shall take effect August 1, 1992.

Except as otherwise set forth herein, no landlord shall increase the rent of any rental unit unless 12 or more months for which there were no outstanding notices of violations respecting the rental premises as defined in § 261-7 hereof have elapsed since the last rental increase. In the event that there is any outstanding notice of violation, in calculating the twelve-month period hereinbefore set forth, any month or part of any month during which there shall have been an outstanding notice of violation shall be discounted in the calculation of twelve-month periods between permissible rental increases.

Notwithstanding that such 12 months have not expired since the last rental increase, a landlord may increase the rent of a rental unit upon the vacation of the rental unit by the tenant thereof, not the result of any unlawful coercion or harassment, by increasing said rent up to but not in excess of the highest rent charged for a rental unit within the same premises having the same or fewer number of rooms; provided, however, that no such increase shall be permitted unless the landlord shall file with the Board and serve upon the new tenants a certification or affidavit setting forth:

The names and forwarding addresses, if known, of the prior tenants.

The apartment number and number of rooms. The landlord shall also notify the Board of the prior rent of the rental unit.

The apartment number, number of rooms and current rent of the rental unit having the highest rent for the same or fewer number of rooms.

The circumstances under which the prior tenants vacated said rental unit.

(5)

A statement that said vacation was not the result of any unlawful coercion or harrassment against the prior tenants by the landlord or his agents, employees, servants or representatives.

No landlord shall increase or add or apportion to the rent of any rental unit any amount attributable, in whole or in part, to any fuel, water, gas or electric or other utility charge respecting such rental unit.

Notwithstanding the foregoing, a landlord may require as a term and condition for the rental of a rental unit that the tenant be responsible for the payment of utility charges directly to the supplier of such utility services, provided that the rental unit is individually metered for such utility charges and that the utility services for which such charges are made are under the exclusive use and control of the tenant of such rental unit.

Where a landlord has supplied utilities to a tenant of a rental unit and seeks to convert the rental unit in such a manner so as to have all or portion of the utilities charged directly to the tenant as set forth above, the Board shall adjust the base rent of the rental unit to reflect the decrease in service or the increase in cost to the tenant of such rental unit by reason of such conversion.

§ 261-5 Effect of capital improvements.

In addition to the rental increases permitted pursuant to § 261-4 hereof, a landlord may charge an increase for capital improvements made by him in the rental unit or attributed to the rental unit pursuant to the provisions of this section.

For the purpose of this section and as further limited and defined by Subsections C and D hereof, "capital improvements" shall mean improvements which permanently enhance the rental value of the rental unit by way of substantial additions to or changes in the existing building and which are not repairs which merely maintain the building in an efficient operating condition nor replacements of fixtures, major appliances and other items which do not provide additional services or convenience to the tenants. By way of further definition and limitation of the term "capital improvements" as used in this section, the term "capital improvements" shall include but shall not be limited to the following articles and improvements provided by the landlord:

Improvement of the existing electrical system which results in substantially increased electrical capacity or service for the building and for use by the tenants.

Improvement of existing plumbing by installation of new pipes or other facilities which substantially improve the capacity or performance of the plumbing system.

Improvement of the existing heating system by installation of a new boiler or furnace or other equipment which substantially increases the heating capacity available to tenants.

Improvement of the hot-water system to provide substantial increase of hot-water supply to tenants.

(5)

Installation of a central heat or hot-water system where none previously existed.

(6)

Installation of screens and/or storm windows where none previously existed.

(7)

The following optional improvements if, but only if, the furnishing or installation of the same is approved by more than 1/2 of the tenants occupying the building, such approvals to be obtained in writing and filed with the Board before the installation of the improvement:

(a)

Central air conditioning.

(b)

Bell, buzzer or intercom system or closed-circuit television security system.

(8)

The following articles or improvements installed within a particular apartment, provided that the approval of the occupant of the apartment is first obtained, which approval shall be in writing and shall be filed with the Board before the improvement is installed:

(a)

Window or wall air-conditioning unit.

(b)

Dishwasher.

(c)

Kitchen or bathroom modernization, including installation of cabinets or vanity.

(d)

Clothes closets.

Replacement of an appliance, including refrigerators or stoves, shall not be considered a capital improvement; provided, however, that if a landlord offers to a tenant a replacement appliance substantially equivalent to the existing appliance, but the tenant requests replacement with a substantially improved appliance, the cost of such improved appliance may be treated as a capital improvement.

The term "capital improvements" as used herein shall not be deemed to include the following:

Roof replacement.

Painting, whether interior or exterior.

The amount of the monthly increase which a landlord may charge for a capital improvement shall be determined as follows:

The total amount of the cost of the capital improvement as permitted by this section shall be divided by the depreciation period allowed by the Internal Revenue Service for said capital improvement, provided that such period shall not be less than one year.

The annual amount so obtained shall be divided by the total number of full rooms of the rental units affected by the capital improvement and then multiplied by the number of full rooms included within a particular rental unit.

The annual amount per rental unit shall be charged to the tenant in not less than 12 equal monthly installments.

In no event shall the monthly increase for a capital improvement be charged for a period greater than the depreciation period of said improvement as described in Subsection E(1) above.

(5)

No increase shall be permitted for capital improvements affecting more than 10 rental units unless the total cost thereof exceeds $2,000.

(6)

No increase shall be permitted for capital improvements made more than 12 months prior to the date upon which an application or such an increase is filed with the Board.

Charges for capital improvements shall not be considered additions to the rent for the purposes of computing rental increases pursuant to § 261-4 hereof.

No charge for capital improvements shall be made to a tenant unless such charge is approved by the Board, upon notice to all affected tenants in accordance with the Board's rules and regulations. Prior to installation or furnishing of any improvement, a landlord may request from the Board a ruling as to whether the same will constitute a capital improvement and may also request a ruling as to the manner in which the landlord will be permitted to charge tenants for the cost thereof.

§ 261-6 Increases due to hardship.

If, by application of the rent limitation hereinbefore set forth or by reason of extraordinary operating expenses with respect to maintenance, repair and operation of rental units, a landlord claims an inability to obtain a minimum fair rate of return on the operation of the rental premises, the landlord may, upon notice to the affected tenants, petition the Board for a waiver of the rent limitations set forth herein.

The Board shall, on notice to the parties, conduct hearings on said petition and shall afford such relief to the landlord as it may deem necessary under the circumstances upon detailed finding of fact regarding all relevant aspects of the landlord's profit, expenses and operation of the building.

Upon the Board's request, the landlord shall furnish and make available to the Board all relevant documents and records, which items shall be made available for inspection by the affected tenants. In addition, the Board may require and order an independent accounting, the cost of which is to be borne by the landlord.

§ 261-7 Maintenance of rental units.

Landlords shall be prohibited from effecting any rent increase upon any apartment or rental unit which is located in premises which have any outstanding violations of this chapter.

In order to effect the provisions hereof, no rent increase shall be charged to any tenant unless the landlord:

Obtains a statement from the Construction Code Official of the Borough of Maywood that the premises containing the rental unit affected by the proposed increase has no outstanding notices of violation of the Maywood Maintenance Code[1] contained in this chapter.

Editor's Note: See Ch. 247, Property Maintenance.

Serves and files such a statement contemporaneously with and in the manner as the owner provides notice of the proposed rent increase to the tenant.

For these purposes, a notice of violation shall be deemed outstanding if any violation specified in such notice has not been corrected within the time period specified by the Construction Code Official.

To satisfy the notice provisions of this section, the statement from the Construction Code Official shall be dated no earlier than 90 days prior to the date on which the proposed rental increase is to take effect.

It shall be the obligation of the Construction Code Official of the Borough of Maywood, upon the request of a landlord and within 14 days after receipt of such request, to provide either:

A statement that the premises containing the rental unit affected by the proposed rent increase has no outstanding notices of violation of the Maywood Maintenance Code;[2] or

[2]

Editor's Note: See Ch. 247, Property Maintenance.

A list of the outstanding notices of violation respecting said premises.

For the purposes of this section, a failure of the Construction Code Official to furnish the aforesaid information within the fourteen-day time period shall have the same effect as if a statement were furnished that said premises had no outstanding notices of violation, and for the purposes of notification to tenants, a bona fide statement from the owner to the tenant that there are no outstanding violations as evidenced by the failure of the Construction Code Official to provide a response to the request hereunder shall suffice and satisfy the requirement of this section.

§ 261-8 Notice of increase; notice of parking requirement.

No rental increase otherwise permitted herein shall be charged to a tenant unless and until a notice setting forth the date of the last rental increase, the existing rent and the effective date and amount of the rental increase respecting the rental unit is filed with the Board and served upon the tenant.

The notice required herein shall be made on a form approved by resolution of the Mayor and Council of the Borough of Maywood and provided by the Rent Advisory Board. Such form may be reproduced by the landlord.

[Amended 7-14-2005 by Ord. No. 08-05]

Prior to entering into any lease or month-to-month tenancy with a new tenant respecting any rental unit as defined herein, the landlord shall disclose, in writing, to such prospective tenant the current requirement under the Zoning Ordinance[1] for the number of parking spaces per rental unit, the number of on-premises parking spaces reserved exclusively for such tenant, if any, the number of parking spaces available to the prospective tenant on a nonexclusive basis, the number of residential units within the residential complex sharing such nonexclusive use and the monthly charges, if any, for the prospective tenants use of such parking spaces. A copy of such written disclosure shall be furnished to the Board upon entering into any tenancy, together with a certification signed by both the landlord and the tenant that such disclosure was given and received prior to entering into the residential tenancy.

[Added 10-28-1997 by Ord. No. 26-97]