As used in this article, the following terms
shall have the meanings indicated:
AVAILABLE FOR RENT TO TENANTS
Fit for habitation as defined by state or local housing inspection
codes or the law as promulgated by the Legislature and courts of the
State of New Jersey and offered for rent.
COMPLEX
Includes all dwelling units advertised as available for rent
to tenants under the same management and trading under the same name.
HOUSING SPACE
Includes 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 complex as is granted in the leasehold from
the landlord to the tenants.
JUST AND REASONABLE RATE OF RETURN
One which is not confiscatory. It should be one generally
commensurate with returns on similar investments; however, an evaluation
must be made of the interests of not only the investor but also the
tenants and the general public.
MULTIPLE DWELLING
Any building or structure or group or complex of buildings
or structures and any land appurtenant thereto in which six or more
units of dwelling space are occupied or are intended to be occupied
by six or more persons who live independently of each other. Additionally,
"multiple dwelling" shall include any aggregate amount of six or more
housing units owned by the same person, firm or corporation within
the Township of Pennsauken, specifically including but not limited
to an aggregate of six or more single-family units, apartment units,
townhouse units or condominium units. For purposes of this definitional
section, the Township Committee of the Township of Pennsauken intends
to have this article apply to any person, firm or corporation who
owns personally, and/or by way of any share or interest, including
any stock or other interest whatsoever in any corporate or other business
entity that owns and rents any single-family units, apartment units,
townhouse units or condominium units in the Township of Pennsauken
and who by virtue of such ownership rents six or more aggregate units,
defined hereinabove, within the Township of Pennsauken.
[Amended 11-23-1988 by Ord. No. 88-45; 7-19-1989 by Ord. No. 89-30]
REASONABLE EXPENSES
Includes but is not limited to taxes and depreciation not
previously compensated for through tax savings or other such means,
utilities, insurance, maintenance, reasonable repairs, vacancy allowances
and uncollectibles. Specifically excluded as expenses are state franchise
and unincorporated business taxes.
REASONABLE RENTAL
Includes a showing of the age, character, locality, appurtenant
amenities and state of repair of the multiple dwelling as well as
comparable rentals for similar properties located within the municipality.
[Amended 9-13-1989 by Ord. No. 89-39]
A. The landlord shall maintain the same standards of
service, maintenance, furniture, furnishings, recreational facilities
and landscaping as were required by law or by the terms of the lease
at the date the lease was entered into. Any individual tenant or class
of tenants who are not receiving substantially the same standards
of service, maintenance, furniture, furnishings, recreational facilities
or landscaping which existed at the signing of the lease may have
the Commission determine the reasonable value of the dwelling in view
of the deficiency. The tenant or class of tenants shall pay the reasonable
rental value as determined by the Commission as the full payment of
rent until the landlord proves that the deficiency has been corrected.
The Commission shall determine the reasonable rental value by using
the following suggestive, but not exhaustive, guidelines:
(1) Violation of an applicable housing, building or sanitary
code.
(2) The nature of the deficiency or defect as it affects
a vital facility.
(3) The potential actual effect upon safety and sanitation.
(4) The length of time of the existence of the condition.
(5) The age of the structure.
(7) Any responsibility of the tenant for the creation
or maintenance of the defective condition.
B. Any fraudulent inducement by the landlord which results
in the signing of the lease by the tenant or by any tenant residing
in any property covered by this article shall be considered by the
Commission in its determinations. In the event that the Commission
determines that any tenant in any property covered by this article
has been coerced or fraudulently induced to enter the lease with a
landlord applying for a rental increase, the Commission may consider
such acts in its determinations and may as a consequence thereof either
deny any such landlord an increase upon application to reduce the
amount and/or percentage of such increase allowed. In the event that
the Commission determines that there exists coercion or fraudulent
inducement, it shall set forth fully and explicitly its factual findings
in regard thereto.
Establishment of rent increase between a landlord
and a tenant to whom this article is applicable shall be determined
by this section of this article.
A. Submission of application for increase.
(1) An annual increase of up to 4% or the consumer price
index of the Delaware Valley Region for the previous calendar year,
whichever is the lower of the two percentages, of the existing rental
rate may be granted by the Commission if the landlord provides the
Commission with a copy of a proper termination notice and proof of
service within 30 days prior to the effective date of the notice.
For this annual increase notice to be proper, it must state that the
tenancy established at the outset of the leasehold is hereby terminated,
and a new tenancy may be created by the parties at the increased rental.
If the Commission is not provided with these required evidences within
the required time, the Commission may rule the annual increase null
and void.
[Amended 4-23-1980 by Ord. No. 80-10; 2-10-1986 by Ord. No. 86-11]
(2) If the complex is insured, financed, subsidized or
in any manner controlled by either the State of New Jersey or the
federal government, particularly the Federal Housing and Urban Development
Agency, in regard to rental income, then the landlord shall submit
an application to the Rent Stabilization Commission at the same time
as he or she would be submitting the application to the other governmental
agency supervising rental increases or amounts. The rental increase
granted by the Rent Stabilization Commission will be effective 60
days after same has been granted by both the Rent Stabilization Commission
and the other governmental agency, as applicable.
[Added 4-23-1980 by Ord. No. 80-10; amended 11-12-1980 by Ord. No. 80-31]
B. An annual rental increase of from 4% of the current
rate or the consumer price index of the Delaware Valley Region for
the previous calendar year, whichever is the lower of the two percentages,
may be granted to a landlord by the Commission, provided that the
Commission is supplied with the following:
[Amended 4-23-1980 by Ord. No. 80-10; 2-10-1986 by Ord. No. 86-11]
(1) Proof of service of increase request on all affected
tenants at least 10 days prior to the hearing on said increase.
(2) Rental rates for previous year for all apartments
with the complex.
(3) That all similarly described units within the complex are presently or under the proposed increase would be paying the same rental, unless exempted under Subsection
C of this section.
(4) Reasonable expenses and all other reasonable costs
and their increase over the previous year.
(5) Reasonable rental of property.
(6) Certified proof of expenses, value of the complex
and rate of return on investment. In presenting such proofs, the landlord's
books may be presented in evidence; however, they are open for the
question of reasonableness, which shall be determined by the Commission.
C. The burden of proof in regards to value computation,
reasonableness of expenses, reasonable rental, inadequacy of rate
of return and all items pertaining thereto is on the applicant.
[Amended 11-12-1980 by Ord. No. 80-31]
D. A property owner cannot submit an application or expenses
whereby more than one complex is mentioned therein for a rental increase
over and above 4% of the current rate or the consumer price index
of the Delaware Valley Region for the previous calendar year, whichever
is the lower of the two percentages, or for a hardship increase or
capital improvement surcharge. A property owner will not be permitted
to subsidize a complex which yields inadequate return out of profits
derived from other complexes concealed by averaging it together with
another complex.
[Amended 4-23-1980 by Ord. No. 80-10; 2-10-1986 by Ord. No. 86-11]
E. In determining the value of real property, the Commission
may consider evidence using various means of computation such as depreciated
replacement costs; market value based on sales of comparable properties;
or any soundly conceived method which the parties may suggest such
as assessed valuation or original cost depreciated.
F. The landlord must provide the Commission with the
aforementioned information at least 20 days prior to the next regularly
scheduled meeting of the Commission. Failure of the landlord to provide
the Commission with this information shall make any increase void
and the tenant shall recover from the landlord for any increases so
paid, unless the Commission finds that the omission was excusable
taking into consideration the landlord's good faith.
G. A rental increase application must be filed with the Commission at least 20 days prior to the next regularly scheduled meeting, expressed as enumerated in §
251-5A(2), in order to be held at said meeting. The Commission shall render its decision upon such application within 60 days of such filing, and upon failure to do so, such application at the expiration of such time shall be deemed to be decided adversely to the applicant in the same manner as though said Commission has rendered a decision to that effect.
[Amended 4-23-1980 by Ord. No. 80-10]
An increase can only be granted by the Commission
once annually. However, a hardship increase may be applied for, pursuant
to § 251-3B, at any time during the course of the year.
In case of such application, the landlord must prove all affected
tenants received at least 10 days' notice of hearing on same.
[Amended 1-22-1997 by Ord. No. 97-1]
A. The landlord of a dwelling being rented for the first
time shall not be restricted in the rent charged for such dwelling.
Any subsequent rent increases, however, shall be subject to the provisions
of this article.
B. Vacant housing space.
(1) Notwithstanding any limitations upon permissible rent
increases under any other provisions of this article, upon the voluntary,
uncoerced vacation of any housing space, the rental increases of which
are controlled in and by this article, the landlord shall have the
right to fix the rent for such vacated housing space at such sum as
he or she deems appropriate, except as is otherwise provided in this
subsection. Once vacant housing space has been rented, it shall immediately
be subject to all of the other terms and provisions of this article,
including but not limited to the limitation upon the maximum amount
of increases of rent thereafter, unless and until such housing space
shall again become vacant. The provisions as set forth in this subsection
shall be known and defined as "limited vacancy decontrol."
(2) Subsection
B(1) shall not apply to any vacant housing space which is rented by a tenant who rented any other housing space from the same landlord immediately prior thereto. Accordingly, such housing space shall continue to be subject to all other terms and provisions of this article. For the privilege of moving from housing space occupied by tenant to other housing space owned by the same landlord, the landlord may charge the tenant a transfer fee, which fee shall approximate the landlord's costs for preparing the unit of housing space into which the tenant shall move, provided that such transfer fee shall not exceed one month's rent of the unit of housing space into which the tenant shall move.
(3) In order for the landlord to qualify for a limited
vacancy decontrol rent increase, the landlord shall file with the
Rent Control Secretary an affidavit certifying to the Board that the
landlord has not, in any way, harassed or pressured the tenant into
vacating the housing space and that the vacation of such housing space
was a voluntary act on the part of the tenant.
Every landlord must notify this Commission within
60 days of original or first rental of a dwelling of the amount of
rental charged for the dwelling unit in order to establish a base
rental.
Every landlord will post and maintain posted
at all times in their rental office or, if none exists, in another
conspicuous place where all tenants and prospective tenants may view
such the maximum rentals for every type of apartment within their
respective complex.
Every landlord must notify tenants at the anniversary
of leasehold or commencement of the leasehold of the location of where
notices will be posted including rental increase applications. A copy
of the form posted must be supplied to this Commission with the rental
application.
[Amended 9-12-1984 by Ord. No. 84-26]
An intentional violation of any provision of
this article, including but not limited to the willful filing with
the Commission of any material misstatement of fact, shall be subject
to one or more of the following: a fine not exceeding $1,250 or imprisonment
in the county jail for a term not exceeding 90 days, or a period of
community service not exceeding 90 days, in the discretion of the
Municipal Court Judge. Each day that a violation occurs shall be considered
a separate offense.
[Added 1-24-2001 by Ord. No. 01-01]
The provisions of this article shall not apply
to any residential health care facility as defined in N.J.S.A.30:11A-1
or health care facility as defined in N.J.S.A.26:2H-2a.
[Added 7-19-1989 by Ord. No. 89-30]
A. Henceforth and effective immediately in the Township
of Pennsauken, every landlord who is subjected to the requirements
of this article shall include in any initial and/or renewal lease
for tenancy within the Township of Pennsauken an express provision
that no tenant, occupant or guest of any tenant or occupant of any
rental unit to which this article applies shall possess, possess with
intent to distribute or distribute any unlawful controlled, dangerous
substances as that term is defined and codified in the criminal statutes
of the State of New Jersey. Every such lease provision shall further
state that any tenant or occupant who violates that provision shall
be deemed subject to eviction for cause and/or violation of the terms
of the lease. Every such lease provision shall further state that
any tenant or occupant who knowingly allows any guest of a rental
unit to possess, possess with intent to distribute or distribute controlled
dangerous substances in or upon the subject rental unit premises shall
be deemed subject to eviction for cause and/or violation of the terms
of the lease. The landlord subjected to the requirements of this article
shall not be granted a requested rental increase unless there is a
showing that the required provisions herein have been included in
all lease agreements, either by direct provision contained in the
lease agreement or by rules and regulations of the rental premises
referred to within the lease agreement and attached thereto and made
a part thereof entered into by the landlord within the one year next
preceding the date of the rental application in question but following
an initial one-year grace period subsequent to the adoption of this
article.
B. Any landlord subjected to the provisions and terms
of this article who knows or should know that any tenant, occupant
or guest of any such tenant or occupant, with such tenant's or occupant's
knowledge, has possessed, possessed with intent to distribute or distributed
controlled dangerous substances while in, on or upon any housing space
or multiple-dwelling premises, as those terms are defined in this
article, owned in whole or in part by any such landlord shall take
all reasonable and practicable steps permissible at law for the timely
and prompt eviction of any such tenant or occupant. Any landlord failing
to take such action shall be denied consideration of any application
for rental increase pursuant to this article. The requisite knowledge
of the landlord shall be presumed in the event that any tenant or
occupant has been convicted of possession, possession with intent
to distribute or distribution of any controlled dangerous substance
while in, on or upon any housing space or multiple-dwelling premises,
as those terms are defined in this article, owned in whole or in part
by any such landlord. In applying for any rental increase pursuant
to this article, the landlord shall have the burden of proof by a
preponderance of the evidence to show that such landlord has taken
all reasonable and practicable steps permissible at law for the eviction
of any offending tenant or occupant.
C. Effective immediately upon the passage of this article,
as part of each application for rental increase pursuant to this article,
the Clerk or other officer of the Municipal Court of the Township
of Pennsauken shall be requested to supply the Commission with any
record of conviction of any offenses for possession, possession with
intent to distribute or distribution of controlled dangerous substances
committed in, on or upon any housing space or multiple-dwelling premises
of the landlord applicant in question for the one year next preceding
the date of the rental increase application under consideration. The
landlord applicant shall be responsible for any record search fee
in these regards, but not to exceed the sum of $75 for any single
application for rental increase.
Any provision of a lease or other agreement
whereby any provision of this article is waived shall be deemed against
public policy and shall be voided.
[Added 11-12-1980 by Ord. No. 80-31]
A. Each applicant for a rental increase shall pay a one-hundred-dollar
nonrefundable application fee to the Township of Pennsauken upon filing
of such application.
B. Any and all expenses incurred for consultants, experts,
attorneys, witnesses, etc., needed by the Rent Stabilization Commission
as a result of a hearing and/or an investigation associated with an
application for a rental increase in, over and above 4% of the current
rate or the consumer price index of the Delaware Valley Region for
the previous calendar year, whichever is the lower of the two percentages,
shall be borne by the applicant for such rental increase.
[Amended 2-10-1986 by Ord. No. 86-11]
C. The applicant for such rental increase over and above 4% of the current rate or the consumer price index of the Delaware Valley Region for the previous calendar year, whichever is the lower of the two percentages, shall deposit with the Township of Pennsauken $1,000 to be utilized to satisfy the expenses incurred as identified in §
251-5C. The balance of the $1,000 not utilized to satisfy expenses shall be returned to the applicant upon the conclusion of its matter before the Rent Stabilization Board. In the event that additional moneys are needed above the $1,000 to satisfy the aforementioned expenses, the applicant shall be so informed of the amount needed and shall deposit such amount with the Township of Pennsauken forthwith.
[Amended 2-10-1986 by Ord. No. 86-11]