[Amended 3-30-1981 by Ord. No. 81-9]
A. The Rent Stabilization Board of the Borough of Metuchen
heretofore created is hereby reestablished and continued. The Board
shall consist of five members of the borough to be appointed by the
Mayor with the advice and consent of the Council. Every member appointed
shall be appointed for two years. In the event a vacancy shall occur
for a regular or alternate member, the same shall be filled for the
balance of the unexpired term. Members presently serving on the Board
are hereby confirmed in office and shall continue to serve until the
expiration of their terms.
B. In addition, there shall be appointed by the Mayor
with the advice and consent of the Council two alternate members to
be designated at the time of said appointment as "Alternate One" and
"Alternate Two." The terms of the alternate members shall be for two
years. The alternate members shall have the right to participate by
discussion in all Board meetings. However, Alternate One shall be
entitled to vote only if one or more members of the Board are absent,
and Alternate Two shall be entitled to vote only if two or more regular
members of the Board are absent or if one regular member and Alternate
One are absent.
[Amended 3-30-1981 by Ord. No. 81-8; 5-3-1982 by Ord. No.
82-13; 6-6-1983 by Ord. No. 83-12]
A. The Rent Stabilization Board is granted and shall
have and exercise all powers necessary and appropriate to carry out
and execute the purposes of this chapter, including but not limited
to the following:
(1) To issue and promulgate such rules and regulations
as it deems necessary to implement the purposes of this chapter, which
rules and regulations shall have the force of law until revised, repealed
or amended from time to time by the Board in the exercise of its discretion,
provided that such rules are filed with the Borough Clerk.
(2) To supply information and assistance to landlords
and tenants to help them comply with the provisions of this chapter.
(3) To hold hearings and adjudicate applications from
landlords for additional surcharges and vacancy decontrol as authorized
by the provisions of this chapter.
(4) To hold hearings and adjudicate applications from
tenants for reduced rental in accordance with the provisions of this
chapter.
(5) To hold hearings and adjudicate disputes between landlords
and tenants arising under the provisions of this chapter.
(6) To order and direct the reimbursement by the landlord
to the tenants of any and all sums of moneys, rentals or otherwise
exacted from tenants in violation of this chapter and to order and
direct the tenant or tenants to pay to the landlord or owner any and
all lawful increases granted to the landlord under this chapter. The
Rent Stabilization Board shall give reasonable opportunity to be heard
to both the landlord and the tenant before making any determination.
(7) To deny all rental increases, as well as tax and hardship surcharges, capital improvement increases and vacancy decontrol determinations or applications for any rental unit where the landlord has obtained an unauthorized charge, fee or brokerage commission, contrary to the provisions of §
147-7D through 147-G for a period of one year from the date on which the Board has made a determination concerning the illegal charge or before the landlord has rented a vacant unit and failed to comply with the vacancy decontrol provisions of §
147-11 for a period of one year from the date the Board has made a determination of the vacancy decontrol violation or until the date of the next vacancy of said unit, whichever occurs last. Any denial of said increases, surcharges, or vacancy decontrol determinations and applications, shall extend only to the specific dwelling unit within the complex involved in the illegal charge or vacancy decontrol violation. In addition, the Rent Stabilization Board shall not grant a landlord any relief under this chapter unless he or she has complied with the registration requirements of §
147-6 and the information statement, if applicable, required under §
147-11E. Any determination by the Rent Stabilization Board shall be made in writing within 45 days of the receipt of request for such determination, or the date of hearing on such determination, whichever date shall be later.
B. In addition to all other provisions set forth in Subsection
A above, the Rent Stabilization Board shall have the power and authority to deny all rental increases, tax and hardship surcharges and capital improvement increases for any or all rental units owned by a landlord where the landlord has pleaded guilty or been found guilty in the Municipal Court of any charge of harassment as set forth in §
147-11 or where the Rent Stabilization Board, after a hearing under the rules set forth in this section, has found the landlord guilty of harassment.
[Amended 3-30-1981 by Ord. No. 81-8; 5-3-1982 by Ord. No.
82-13]
For the purposes of this chapter, the following
words and phrases shall have the following meanings respectively ascribed
to them by this section:
AVAILABLE FOR RENT TO TENANT
Fit for habitation as defined by the statutes, codes and
ordinances in full force and effect in the State of New Jersey, County
of Middlesex and Borough of Metuchen and occupied or unoccupied and
offered for rent.
CASH FLOW
The landlord's net income as determined in accordance with
sound accounting procedures except that depreciation shall be eliminated.
DWELLING
Any building or structure or trailer, or land used as a trailer
park, rented or offered for rent as a residence to one or more tenants
or family units. Excluded from this definition and from the operation
of this chapter are motels, hotels and similar type buildings and
dwellings of three units or less in which the owner of the premises
resides.
FAIR RETURN
The percentage of return on equity on real property investment.
The amount of return shall be measured by net income before depreciation.
FUEL
Includes oil, coal, gas and/or electricity used for heating
dwellings controlled under this chapter.
HOUSING SPACE
That portion of a dwelling rented or offered for rent for
living and dwelling purposes to an individual or family unit, together
with all privileges, services, furnishings, furniture, equipment,
facilities and improvements connected with the use or occupancy of
such portion of the property.
JUST CAUSE
Any action by or on behalf of a landlord in refusing to let,
rent, relet or rerent residential premises to a tenant or any action
toward a dispossess, including but not limited to the following:
A.
Failure on the part of the tenant to pay rent
due and owing, whether the same shall have been due by virtue of a
written lease, an oral letting or a month-to-month tenancy.
B.
Disorderly, disturbing, damaging or malicious
conduct on the part of the tenant that is harmful to the peace and
tranquility of the landlord, other tenants or neighbors or destructive
of personal property.
C.
Intentional or neglectful conduct that creates
or permits filth, noise, damage or destruction of any kind.
D.
Frequent or repeated violations by the tenant
of contractual obligations contained in the lease or of reasonable
rules and regulations established by the landlord previously having
been agreed to.
E.
Substantial breach of terms and conditions contained
in a lease.
F.
Clear and convincing proof that an owner intends
to occupy the premises personally. Any owner seeking eviction of a
tenant or possession of premises on the ground that it shall be for
his or her own use must occupy the premises within 60 days and not
for less than one year.
G.
The owner seeks to close the premises down and
will not permit further occupancy in the future.
MAJOR CAPITAL IMPROVEMENT
A substantial change in the housing accommodations such as
would materially increase the rental value in a normal market and
provide the tenants with a benefit of service which they had not previously
enjoyed. Ordinary repairs and maintenance, replacement of facilities,
materials or equipment so as to maintain the same level of services
as previously provided shall not constitute a major capital improvement.
The fact that a capital improvement qualifies as a capital expenditure
or capital improvement under the Internal Revenue Code shall not be
considered evidence that the improvement is a major capital improvement
under this chapter.
PRICE INDEX
The consumer price index, all items for that region of the
United States in which the Borough of Metuchen is included, which
index is periodically published by the Bureau of Labor Statistics
of the United States Department of Labor.
RENTAL UNITS
Dwellings, the rental for which, is regulated under this
chapter.
A landlord shall not refuse to rent, relet or
rerent housing space or terminate a landlord-tenant relationship except
for just cause.
All rental units in the Borough of Metuchen
must be registered by the owners of those rental units annually on
or before April 1 with the Borough Clerk and the Rent Stabilization
Board of the Borough of Metuchen. The information required to be furnished
to the Borough Clerk and the Rent Stabilization Board shall include
the following:
A. The address of the property.
B. The number of the rental units therein.
C. The number of rooms in each rental unit.
D. The current rent charged for each rental unit.
E. The rent for each rental unit for the three pervious
years.
F. The total amount of surcharges for each rental unit so that the total of Subsections
D and
F of each rental unit would total the full amount paid by the tenant to the landlord for the current year.
[Amended 3-30-1981 by Ord. No. 81-8]
A. Establishment of rents between landlords and tenants
for dwellings and rental units as defined in this section shall hereafter
be determined by the provisions of this chapter. At the expiration
of a lease, or at the termination of the lease of a periodic tenant,
no landlord shall request or receive a percentage increase in rent
from the existing tenant or new tenant which is greater than the lesser
of the following two calculations:
(1) The percentage difference between the consumer price
index 90 days prior to the expiration or termination of the lease
and the consumer price index 90 days prior to the date on which the
term of the existing tenant commenced.
(2) Seven and one-half percent of the rent in effect under
such lease at the expiration thereof.
B. For a periodic tenant whose lease terms shall be less
than one year, such tenant shall not suffer or be caused to pay any
rent increase greater than the lesser of the following two calculations:
(1) The consumer price index differential for the calendar
year prior thereto.
(2) Seven and one-half percent of the rent in effect under
such lease at the expiration thereof.
C. In no event shall the rental charge for a rental unit be increased more than once in a twelve-month period. However, this limitation shall not apply to an increase arising from vacancy decontrol if permitted under §
147-11.
D. No landlord shall institute any separate charge or
fee for any privilege, service or facility normally or currently connected
with the use or occupancy of a dwelling.
E. Any separate charge or fee presently in effect for
services or facilities, such as garage spaces, parking spaces, swimming
pool membership or similar services and facilities, if mandatory,
shall be subject to the same percentage increase as shall the base
rent.
F. No landlord shall charge any application fee to prospective
tenants unless said fee bears a reasonable relationship to some expense
incurred by the landlord in processing the application. Any fee in
excess of $50 shall be presumed unreasonable and subject to prosecution
unless the landlord can establish the reasonableness of same.
G. No tenant shall be charged any brokerage commission
or charge as a result of the rental of any dwelling. Any such charge
shall be borne solely by the landlord.
Any rental increase at a time other than the
expiration of a lease or termination of a periodic lease is prohibited
and void. Any rental increase in excess of that authorized by the
provisions of this chapter is prohibited and void.
Any landlord seeking an increase in rent shall
first notify any tenant by certified mail, or registered mail, return
receipt requested, or by personal service of the calculations involved
in computing the increase, including the consumer price index, if
applicable, 90 days prior to the date on which the term of the lease
of the existing tenant commenced, the consumer price index, if applicable,
90 days before the expiration of the lease, the allowance percentage
increase and the allowable rental increase.
[Amended 5-3-1982 by Ord. No. 82-13; 7-19-1982 by Ord. No.
82-21; 6-6-1983 by Ord. No. 83-12]
The owner of housing space or dwelling units
being rented for the first time shall not be restricted to the initial
rent he or she charges. Any subsequent rental increase for the dwelling
unit, regardless of the turnover of the tenants, shall be subject
to the provisions of this chapter.
A. Notwithstanding any limitations on any permissible
rent increases under provisions of this chapter, upon the voluntary,
uncoerced vacation of any apartment, for rent increases which are
controlled in this chapter, the landlord shall have the right to an
increase in rent for such sums as he or she deems appropriate subject
to the following:
(1) In order for a landlord to qualify for the vacancy
decontrol rent increase, the landlord shall first be required to file
with the Rent Stabilization Board a written statement signed by the
vacating tenant and an affidavit signed by the landlord certifying
to the Board that the landlord has not in any way harassed or pressured
the tenant into vacating the housing space unit and that the vacation
of such unit was the voluntary act of the tenant. For the purposes
of this chapter, a vacation caused or necessitated by substandard,
unsafe or unsanitary conditions on the rental premises shall not be
deemed a voluntary vacation. Such noncoercion certification shall
not be required for a landlord to qualify for a vacancy decontrol
increase if:
(a)
The increase does not exceed the total of all
permissible increases authorized by any other provisions of this chapter.
(b)
The landlord files an affidavit with the Rent
Stabilization Board certifying that the tenant has moved from the
unit without notification to the landlord, and the landlord has made
a good faith effort to obtain a noncoercion certification from the
tenant.
(c)
The landlord files an affidavit that the tenant
has vacated the unit pursuant to a judicially mandated eviction.
(d)
The tenant has refused to sign such certification,
and upon appeal by the landlord, the Rent Stabilization Board has
found that such refusal was unwarranted, and that there was in fact
no coercion exerted by the landlord upon the tenant.
(e)
A hearing pursuant to Subsection
A(1)(d) above shall be held before the Rent Stabilization Board upon the landlord giving at least seven days notice to the vacating tenant and five days notice to the public by inserting an advertisement of same in any of the official newspapers of the Borough of Metuchen.
(2) As further condition for qualification for vacancy decontrol, the landlord shall file with the Rent Stabilization Board a certificate from the Health Officer or Sanitary Inspector of the Borough of Metuchen certifying that the said housing space, as well as the exterior of the buildings, common grounds and appurtenances of the complex of which the housing space is a part, are in substantial compliance with the provisions of the Chapter
107, Housing, and Chapter
213, Health and Sanitation, and the Chapter
225, Nuisances, and that any prior violations for the complex known to the Health Officer and Sanitary Inspector have been corrected. Substantial compliance means that the housing spaces and dwellings units are free from all heat and hot water violations, safety and fire hazards, as well as 90% qualitatively free of all violations of the three chapters mentioned herein. The officer's certification may be based on reports of the Construction Code Official, the Fire Inspector and Fire Subcode Official, the Plumbing Subcode Official and the Chief of Police. When requesting certification of the unit, the landlord may make application for inspection required in this section prior to the date of the actual vacation of the housing space by the tenant, but shall not rent said unit at a decontrolled rental unless there is full compliance with the provisions of this section.
(3) The fee payable to the Borough of Metuchen for the
inspection under this section shall be $30, payable simultaneously
with the request for certification. The fee for any reinspection based
upon the same request shall be the additional sum of $45, payable
prior to the submission of any certification by the Health Officer.
B. The decontrol provisions of this section shall apply only to the dwelling units which are physically vacated subsequent to the adoption date of this section, May 3, 1982. Any units decontrolled between May 3, 1982, and May 3, 1983, remain subject to the rent control provisions of this chapter for any future increases after the initial decontrol increase unless they become vacant and again qualify for vacancy decontrol. Any units which become decontrolled after May 3, 1983, shall be deemed permanently decontrolled and shall not be subject to the provisions of this chapter except the landlord shall continue to have the obligation to comply with the provisions of Subsection
E of this section.
C. The following acts shall be considered willful violations of this chapter and shall subject the landlord to penalties as provided in §
147-22.
(1) Harassment. This shall include any act outlawed as
harassment under N.J.S.A. 2C:33-4 and shall specifically also include
any of the following:
(a)
A threat by the landlord to reduce the standards of service and maintenance, furnishings and equipment as set forth in §
147-12.
(b)
A threat by the landlord to injure the life
or limb of any tenant or damage the property of any tenant.
(c)
A rebuttable presumption of harassment shall
be established where the landlord in a one-year period has received
three notices of utility shut-off or discontinuance after failure
to pay a utility bill, and where tenant has received notice as provided
in the public utility regulations, and where the landlord has failed
to invoke the disputed bill procedure under N.J.A.C. 14:3-7.13(a)
or the procedure for the deferred payment agreement under N.J.A.C.
14:3-7.13(c) and 14:3-7.13(d)
(2) Any reduction by the landlord in services which causes
the tenant to vacate the premises.
(3) Any vacation of the premises which is coerced.
(4) Any failure to file the certification and/or affidavits
when required under this section, unless excused as set forth above.
D. Any tenant as well as the Rent Stabilization Board shall have the power, in addition to the powers granted in this chapter, to file a complaint in the Municipal Court of the borough for any violation of §
147-11 of this chapter as set forth above. Also, a landlord violating this section in respect to a specific unit shall forfeit the right to have a unit decontrolled for a period or one year from the date of the determination of said violation by the Rent Stabilization Board.
E. Upon vacation of any housing space hereafter, which
has been qualified for vacancy decontrol, the landlord shall file
a statement with the Rent Stabilization Board, certifying to the Board
the following:
(1) The apartment and building numbers of such dwelling
unit.
(2) The rent paid by the vacating tenant.
(3) The maximum rent increase that would be permissible
under this chapter, were it not for vacancy decontrol provisions of
this chapter.
(4) The date on which the unit was vacated and the date
on which the unit was occupied by the new tenant.
(5) The rent agreed to by the new tenant.
(6) Any amount which the tenant pays for brokerage fees
or application fees to the landlord or his or her authorized agent,
or any other party consented to by the landlord.
(7) That the landlord has provided a written notice to
any new tenant prior to renting such decontrolled unit. The form notice
shall read as follows:
"The premises which you are now renting at (insert apartment
number or address) have been decontrolled and are no longer governed
by the provisions of the Metuchen Rent Stabilization Ordinance. Any
future rent changes or lease changes are subject to law but need not
conform with any of the provisions of the Metuchen Ordinance."
(8) A copy of the notice with acknowledgment of receipt
signed by the tenant must be attached to the certification.
During the valid life of this chapter, landlords
shall maintain the standards of service and maintenance of all real
and personal property and equipment in and around the housing spaces
and dwellings in the same manner as was provided on the date of the
adoption of this chapter. An individual tenant or a class of tenants
who are not receiving substantially the same standards of service,
maintenance, furniture or furnishings or equipment may apply to the
Rent Stabilization Board for a determination of a reasonable rental
value of the housing unit or dwelling in view of this deficiency.
The tenant or class of tenants shall pay the reasonable rental value
as full payment for rent until the landlord proves that the deficiency
has been corrected.
[Amended 5-3-1982 by Ord. No. 82-13]
A. A landlord may seek a tax surcharge from a tenant
where the landlord has become liable for an increase in municipal
property taxes. Such a tax surcharge shall not exceed that amount
authorized by the following provisions:
(1) The landlord shall divide the increase in the present
property tax over the property tax of the previous year by the number
of rooms in the dwelling to obtain the tax increase per room. The
tenant shall not be liable for a tax surcharge exceeding the tax increase
per room multiplied by the number of rooms occupied by the tenant.
(2) In figuring the tax surcharge, the tenant shall be
responsible to pay the tax surcharge for any previous years that have
been granted under this chapter, as well as the tax surcharge for
the current year on which the landlord has figured the surcharge and
of which the tenant has been notified.
B. Notwithstanding the formula described herein, no tax
surcharge shall be permitted or collected unless there is a written
lease between the landlord and tenant which clearly provides for such
a contingency or where the tenancy is on a month to month basis by
virtue of a carry over or otherwise, or where the tenancy exists by
virtue of an oral letting.
C. On or after the municipal assessments and taxes have
been determined for the year 1984, no landlord shall be entitled to
a tax surcharge for housing space or dwelling units controlled by
this chapter for any increase in taxes due to an increase in the assessment
on the landlord's property over the 1983 assessment, which shall be
considered a base year because of revaluation. Any tax surcharges
charged in the year 1984 or the subsequent years shall be based on
a percentage increase in the tax rate which has caused an increase
in the landlord's property tax. However, the landlord may continue
to collect, as a separate charge, any tax surcharges that he or she
had been collecting for previous years, less any credits for tax appeal
rebates, as set forth in this section.
D. The Rent Stabilization Board shall distribute to the
landlords upon request a formula setting forth the method of determining
the tax surcharge for any increase between 1983 and 1984 and any subsequent
years.
Any landlord seeking a surcharge shall first
notify the tenant by registered mail, or certified mail, return receipt
requested, or by personal service of the calculation involved in computing
the tax surcharge, including the present property tax on the dwelling
for the previous year, the total number of rooms in the dwelling,
the tax increase per room, the number of rooms occupied by the tenant
and the maximum allowable surcharge.
When a tax surcharge has been permitted or allowed,
the tenant shall be liable for payment in 12 monthly payments after
notification by landlord, commencing July 1 of each tax year.
A tax surcharge shall not be considered rent
for purposes of computing cost of living rental increases.
[Amended 3-30-1981 by Ord. No. 81-8; 5-3-1982 by Ord. No.
82-13]
A. In the event a landlord perfects a successful tax
appeal, the landlord shall refund to the tenant pro rata to the tenant's
living space so leased all amounts which the tenant had previously
paid, together with interest thereon, or had become liable for as
a tax surcharge during and for the year in which the landlord has
received a refund based on the tax appeal; together with interest
thereon. The landlord may thereafter retain the balance of the tax
refund. For the purposes of this section, tax surcharge shall include
any accumulated tax surcharge that the tenant was paying or was obligated
to pay during the year for which the refund was granted. The landlord
shall notify, in writing, the tenant of the amount being rebated to
him or her under this provision within 14 days of the receipt of the
tax refund from the municipality. The landlord shall then rebate that
amount to the tenant within 30 days after said notification.
B. On or after the tax year 1984, the landlord shall
not be responsible to pay the tenants any amounts collected as the
result of a successful tax appeal for the year 1984 or any year thereafter.
A landlord shall not withhold the payment of
that portion of municipal property taxes for which a tax surcharge
has been collected from any tenant.
The surcharge shall be applicable for one year
and shall not continue unless further application is made to and approved
by the Rent Stabilization Board. The Board shall not grant any hardship
increases where it is satisfied that the landlord has reduced standards
of maintenance and/or service which were being provided either at
the original adoption of this chapter in 1973 or at the date in which
the premises were let for rental. Hardship surcharges shall not be
considered rent for the purposes of computing rental increases. The
total hardship surcharge shall be divided among the tenants in the
same manner as the tax surcharge and shall be paid in equal monthly
installments over a one-year period unless otherwise determined by
the Rent Stabilization Board and upon such notice as the Rent stabilization
Board shall determine.