Township of Lawrence, NJ Rent Control

This chapter shall be known and designated as the "Lawrence Township Rent Control Regulations (1984)" and the definitions shall apply to all uses of the following terms therein.

§ 325-2 Definitions.

[Amended by Ord. No. 1315-92; Ord. No. 2003-09 § 1]

As used in this chapter, the following terms shall have the meanings indicated:

BASE RENT

For a given apartment shall be the monthly rental for that apartment as calculated by subsection 21-1.17 of this chapter, against which monthly rental a permissible increase in rent is to be measured. The term "base rent" does not include any supplemental charges except increases as allowed by subsection 21-1.18 of this chapter.

CATEGORY OF APARTMENT UNITS

Similar rental units as categorized below:

One bedroom units.

Two bedroom units.

LANDLORD

The person or persons letting, owning or managing a residential rental property situated within the Township.

RENT

The total sum of monies or things of value paid by a tenant to a landlord during the course of a lease period, excluding monies paid as security deposit, and monies paid to compensate a landlord for expenses incurred as a result of damage to premises or breach of contract by tenant.

RESIDENTIAL MULTIPLE-FAMILY DWELLING

Any separately administered building, structure or complex of one or more stories or a portion thereof and any land appurtenant thereto containing 10 or more residential multiple-family dwelling units. Excluded herefrom are motels, hotels, school or college dormitories or other buildings or structures serving transients.

TENANT

The person or persons to whom a unit of a residential multiple-family dwelling is let situated in the Township.

§ 325-3 Creation of Rent Stabilization Board.

There is hereby created a "Lawrence Township Rent Stabilization Board" consisting of five members and six alternates appointed by the Council selected on the basis of their qualifications and fitness for service on the Board. Of the five members, one each shall be of the following two classes: (1) a landlord as defined herein; (2) a tenant as defined herein, and (3) three members who shall be of neither class and shall be interested citizens. All members and alternates shall be residents of the Township of Lawrence except those of the class of landlord.

§ 325-4 Conflicts of interest.

Any member shall disqualify himself or herself from participation in any phase of any dispute, controversy or claim whatsoever, involving any residential multiple-family dwelling in which he or she has or had any security, ownership, management, leasehold, or other financial or property interest of whatsoever nature. Such disqualification shall not be mandatory if the member's interest in the residential multiple-family dwelling terminated more than five years preceding his or her appointment. This shall not prevent a member from being disqualified for any other reason required by law or ordinance.

§ 325-5 Term of office.

Members and alternates shall be appointed for two years. There shall likewise be appointed two alternates to each of the three classes of members. An alternate may vote on matters in the absence and in place of a member of the same class provided such alternate certifies that he has reviewed all documents, tapes or transcripts pertaining thereto and is familiar therewith.

§ 325-6 Funds.

There shall be appropriated in each annual budget of the Township such sum as may be determined by the Township Council to be necessary for the purpose of administering this chapter. The Board shall make annual requests for appropriation, which requests shall be specific and submitted to the Township Clerk for presentation to the Council on or before November 1st of each year for the subsequent calendar year.

§ 325-7 Chairman, officers, organization meeting.

The Board shall organize annually at the first regular meeting of the calendar year, and shall at each such meeting choose from among its class 3 members: a Chairman, a Vice Chairman and such other officers as it may deem necessary, and shall determine a schedule of meetings not less frequently than quarterly in accordance with the "Open Public Meetings Act." Alternate members shall be designated as "alternate 1, alternate 2," etc., by the Council in advance of the annual reorganization meeting.

There shall be a clerical assistant and an attorney to the Board appointed by the Council for a term of one year on January 1st of each year, upon terms as determined by the Council. The Board may request Council to engage such other legal, professional or clerical assistance as it deems necessary from time to time to properly implement this chapter, within available appropriations.

§ 325-8 Removal.

Any member or alternate who has been absent unexcusably from three successive regular meetings of the Rent Stabilization Board may be removed from office by Council after written notice and an opportunity to explain the absences.

§ 325-9 Quorum.

A majority of the whole number of regular members shall constitute a quorum. If a quorum is not present one hour after the appointed time for the meeting, the presiding officer shall declare the meeting or hearing adjourned.

§ 325-10 Special meetings.

A special meeting may be called at any time by the Chairman or upon request to the Chairman of a majority of the Members of the Board. The request and call for a special meeting shall specify the date, time, location and purpose(s) of the meeting. The call for such special meeting shall be served by the Chairman upon each Board Member and alternate at least 72 hours prior to the time for which the meeting is called. Upon the call for a special meeting, the Chairman, or other designated officer, shall forthwith give notice thereof at such place previously designated by the Board Members for that purpose. All such meetings shall be in conformity with the "Open Public Meetings Act."

§ 325-11 Minutes.

Accurate summary minutes of all meetings, hearings, complaints and decisions shall be prepared and filed by the clerical assistant to the Board within one month of each meeting. Minutes shall be in conformity with the "Open Public Meetings Act" and all members, alternates and the Township Clerk shall receive a filed copy.

All hearings of the Board shall be tape recorded and available for transcription.

§ 325-12 Procedure.

In absence of provisions of law or ordinances to the contrary, "Robert's Rules of Order" shall govern conduct of the Board's proceedings.

§ 325-13 Forms, rules and regulations.

The Board may prescribe forms and procedures and adopt such administrative rules and regulations as it deems necessary to implement this chapter consistent herewith and with "Robert's Rules of Order." Such forms, procedures and rules and regulations shall be filed with the Township Clerk.

§ 325-14 Subpoena power.

The Board shall have the power to subpoena witnesses, books and records pursuant to N.J.S.A. 2A:67A-1 et seq.

§ 325-15 Confidentiality.

Insofar as the "Open Public Meetings Act" permits, whenever any material is to be discussed, the disclosure of which would constitute an invasion of individual privacy or is otherwise eligible for discussion in a closed session, a request for confidentiality may be made and shall be observed to the extent practicable.

§ 325-16 Appeals.

Any party or affected tenant desiring to appeal any decision of the Rent Stabilization Board shall appeal to Council. Such appeal shall be made within 30 days of the date of final decision of the Rent Stabilization Board. The appeal shall be made by serving the Township Clerk in person or by certified mail with a notice of appeal specifying the grounds thereof and the name and address of the appellant and name and address of his attorney, if represented. Such appeal shall be decided by the Council only upon the record established before the Rent Stabilization Board, and such argument as pertains to the established record.

The appellant shall, within five days of service of the notice of appeal, arrange for a transcript of proceedings before the Rent Stabilization Board to be prepared for use by the Council, and shall pay a deposit of $50, or the estimated cost of such transcription, whichever is less; otherwise, the appeal may be dismissed for failure to prosecute. The Township Council may waive the transcription fee provided for in this section in the event of economic hardship and upon application by an appellant.

The Township Council may reverse, remand or affirm, wholly or in part, or may modify the decision of the Rent Stabilization Board.

Any landlord intending to appeal a decision of the Board shall notify the tenant or tenants who may be affected, personally or by certified mail, at least 10 days in advance of filing the appeal. A tenant intending to appeal shall similarly notify the landlord and shall follow the same procedures set forth in this section. Service shall be deemed effective if made upon the person or address at which rental payments are made, unless a landlord designates otherwise in advance in writing.

§ 325-17 Rent increases for existing tenancies.

Establishment of rents between landlords and tenants in all residential multiple-family dwellings covered by this chapter shall hereafter be subject to the provisions of this chapter. With respect to extensions and renewals of tenancies which are in existence as of the effective date of this chapter, no landlord may request, impose, or receive a percentage increase in rent greater than as follows:

(1)

For extensions and renewals taking effect on or before December 31, 1985, the percentage increase for an apartment may not exceed 4% of the average rent levels for that apartment for the preceding 12 months. In calculating average rent for an apartment for the preceding 12 months for any month in which no rent or less than full rent was charged because of a vacancy, the rent to be employed for calculation purposes is the last full month's rent charged for that apartment.

(2)

For extensions and renewals taking effect on or after January 1, 1986, the percentage increase for an apartment may not exceed the percentage increase in the index provided for in Subsection B hereof, calculated by comparing the index for the immediately preceding calendar year at year's end with the year and index for the calendar year immediately preceding that year. Thus, for increases in 1986 governed by this section, the percentage increase is to be determined by comparing the 1985 year's end index with the 1984 year's end index. If, for example, the 1984 year's end index were 200, and the 1985 year's index were 210, then the percentage increase allowable in 1986 would be calculated as follows:

(210 - 200)

200

= 0.05

The aforesaid percentage increase would be applied to the average rent for a particular apartment for the preceding 12 months as calculated in accordance with Subsection A(1) above for the purposes of determining the maximum increase allowable. Thus, if the index calculations were to produce a maximum allowable percentage increase of 5% and if the average rent for a particular apartment for the preceding 12 months were to be $500, then the maximum allowable increase for that apartment on an extension or renewal would be $25 ($500 x 0.05).

(3)

For extensions and renewals taking effect on or after January 1, 1993, the percentage increase for an apartment may not exceed the percentage increase in the Consumer Price Index for Urban Wage Earners and Clerical Workers, Selected areas, All Items Index (CPI-W, Table 3.), U.S. City Average, as published by the U.S. Department of Labor, Bureau of Labor Statistics, hereinafter referred to as the "index," calculated by comparing the index for the month of September in the immediately preceding calendar year with the index for the month of September in the calendar year immediately preceding that year. Thus, for increases in 1993 governed by this section, the percentage increase is to be determined by comparing the index for the month of September 1992 with the index for the month of September 1991. For example, the index for the month of September 1991, was 135.2. If the index for the month of September 1992 were to be 141.90, then the percentage increase allowable in 1993 would be calculated as follows:

141.90 - 135.2

135.2

= 0.05 (after rounding to the nearest 0.01) or 5%

Beginning January 1, 1986, the index to be utilized for making the calculations called for by Subsection A(2) above shall be the December - December Average Percent Change of the Consumer Price Index - CPI - W - Table 3 U.S. City Average, All Items, as published by the U.S. Department of Labor, Bureau of Labor Statistics. Pending publication of the index during any applicable year, the corresponding index of the preceding year shall be utilized in calculating rent level changes.

§ 325-18 Powers of the Rent Stabilization Board.

Powers of Board.

(1)

The Rent Stabilization Board shall have the power and duty to hold hearings, engage in fact finding, reform leases to accord with the provisions of this chapter and adjudicate hardship increases and decreases in rents from the increases permitted herein, provided no such hardship increase or decrease shall result in a total increase or decrease which provides more or less, respectively, than a just and reasonable rate of return to the landlord on the landlord's investment.

(2)

The Rent Stabilization Board shall and does have the power to promulgate such regulations as are necessary and proper to administer the provisions of this chapter and to fairly adjudicate all applications properly advanced before it. All such regulations shall be fully consistent with the provisions of this chapter and with State law.

Hardship increases and decreases.

(1)

Hardship increases may be granted upon landlord application as follows:

(a)

To provide amortized reimbursement to the landlord for major capital improvements to the residential multiple-family dwelling pro-rata as applicable to units thereof.

(b)

To provide reimbursement to the landlord for additional or enlarged landlord furnished services to tenants of the residential multiple-family dwelling pro-rata as applicable to units thereof.

(c)

To insure, that, considering all applicable landlord operating and financing costs, landlord may legally receive sufficient rental income to provide a just and reasonable return.

(d)

The foregoing factors permitting a hardship increase may also be utilized to adjudicate hardship decreases where there is a reduction in facilities, maintenance, repairs or services rendered to any tenant by landlord or reduction in any applicable landlord operating or financing costs, all upon application by a tenant.

(2)

The burden of proof shall be on the applicant, who shall comply with all applicable rules, regulations and procedures and submit on forms prescribed by the Board.

(3)

All parties may be heard, call witnesses, be represented by counsel and offer any relevant evidence or material.

(4)

Applications for the foregoing hardship increase(s) or decrease(s) in rent must be filed not later than 90 days prior to the proposed effective date of the application. Proof of service upon the affected tenant(s) or landlord, as the case may be, must accompany each application. Any applications not complying with the provisions of this chapter shall not be considered.

(5)

All evidence of a financial nature submitted by any party to the Rent Stabilization Board for hardship increases or decreases must be supported by a sworn statement by that party as to the accuracy thereof.

(6)

The Board may grant, deny or modify any such application and its decision shall be binding on all parties.

(7)

There shall be a fee payable, per rental unit under application, to the Township of Lawrence as established in Chapter 156, Fees.

Rent adjustment proceedings. In the event that a tenant contends that a lease agreement outstanding or proposed between the tenant and landlord provides for a rent which exceeds the allowable rental increases provided for herein, the tenant may make complaint to the Board upon forms and pursuant to procedures which may be promulgated by the Board. Upon filing of such a complaint by a tenant, and upon notice to the landlord pursuant to procedures set forth in paragraph b. hereof, the Board shall hear and decide whether an outstanding or proposed lease conforms to the provisions of this chapter. If the Board finds that the lease does not conform, the Board may direct reformation of the lease to conform. Refusal of the landlord to so reform the terms of the lease shall constitute a willful violation of this chapter.

§ 325-19 New tenancies.

[Amended by Ord. No. 1313-92]

Should an apartment become vacant, the initial rental to be charged for that apartment to a new tenant shall be determined by the landlord. Thereafter, any future rent increases for that apartment unit shall be governed by the provisions of § 325-17 of this chapter.

A landlord who engages in any course of conduct which unreasonably disturbs any tenants in the lawful use and occupancy of the tenant's apartment unit, including, but not limited to, willful interruption or discontinuance of services or failure to correct violations of applicable housing, health and safety codes, with the intent to create a vacancy shall be guilty of a violation of this section and shall be liable for the penalty stated in Chapter 1, Article III.

§ 325-20 Reserve clause.

Permissible rent increases which are not charged by a landlord in whole or in part will be waived unless the right to charge the difference is reserved in the lease. The amount so reserved may be made a part of the base rent upon the expiration of the lease period.

§ 325-21 Notification.

Any landlord seeking an increase in rents shall notify the tenant by certified mail or by personal service, on a form approved by the Board of the calculations involved in computing the increase, including all information required in order to compute the formulas as set forth in this chapter, as well as the rental charged for the unit under the terms of the most recent prior lease, oral or written. A copy shall be filed with the Board at the time of notice to tenants. A tenant seeking a rental decrease shall reciprocally both notify the landlord and follow the same procedure set forth in this section, with service upon landlord to be effected if made to the person or address at which rental payments are then made unless landlord designates otherwise in advance in writing.

§ 325-22 Reprisal.

[Amended at time of adoption of Code (see Ch. 1, General Provisions, Art. I)]

Any reprisal or attempted reprisal by a landlord against a tenant or by a tenant against a landlord, of any nature whatsoever because of the party's use or attempted use of the provisions of this chapter shall be liable for the penalty stated in Chapter 1, Article III, for each such reprisal or attempted reprisal.

§ 325-23 Further procedures.

Every hearing shall be conducted by a quorum of the Board. Two or more petitions involving the same landlord may, in the discretion of the Board, be consolidated for a single hearing.

The failure of any party to a rent adjustment proceeding or any other hearing before the Board to appear in defense of or in response to a petition shall not be cause for the granting of the relief petitioned for; provided, however, that the Board shall not be obligated to await the appearance of any party failing to respond to a notice of a hearing and may proceed to a hearing and determination upon whatever evidence is produced before it.

If the Board shall determine that a tenant has been caused to pay excessive rents in excess of the limitations provided herein, it shall incorporate in its final determination an order compelling reimbursement of the difference between the total amount paid in excess and the amount determined by the Board as allowable under the chapter, plus interest at current bank money market rates.

§ 325-24 Standards of maintenance, repairs, facilities and services.

Any significant decrease in maintenance, repairs, facilities or services shall be deemed an added rent and may result in a decrease in rents as provided in § 325-18. In addition, such may be deemed a reprisal and subject the landlord to penalties provided in § 325-22 above. Significant increase or decrease in maintenance, repairs, facilities or services is a factor to be considered in all applications hereunder. If the Board shall determine there has been a significant decrease in maintenance, repairs, facilities or services, it may also order a pro-rata share of all rentals collected from the residential multiple-family dwelling be placed in escrow, shall appoint a trustee to take custody of such account, shall direct the trustee to provide the maintenance, repairs, facilities or services in accord with public bidding laws, and to pay therefor out of the escrow and shall order the landlord to pay the trustee a reasonable fee for his services. The order shall continue so long as the landlord fails to provide the required maintenance, repairs, facilities and services.

§ 325-25 Violations and penalties.

[Amended at time of adoption of Code (see Ch. 1, General Provisions, Art. I)]

A violation of any provisions of this chapter, including, but not limited to, the filing with the Board of any material misstatement of fact, or any violation of an order duly issued by the Board, the violator shall be liable for the penalty stated in Chapter 1, Article III. A violation affecting more than one leasehold shall be considered a separate violation as to each leasehold.

§ 325-26 Non-waiver of rights.

Any written or oral provision in any agreement whereby the rights conferred under this chapter are waived, altered or amended shall be deemed against public policy, void and unenforceable.

§ 325-27 Temporary ceiling.

Notwithstanding any provision hereof to the contrary, any rental increase lawfully imposed pursuant to the Township's Temporary Rent Ceiling Ordinance No. 947-83 adopted June 15, 1983, as amended and supplemented, shall not be affected by the provisions of this chapter.

§ 325-28 Security deposits.

Whenever money or other form of security shall be deposited or advanced on a lease agreement for the use of rental property and security for the performance of that agreement, the person receiving the monies deposited or advanced shall deposit such money in a banking institution or savings and loan association in the State of New Jersey insured by an agency of the federal government in an account bearing interest at the highest rate currently paid by such institution and association for such accounts.

§ 325-29 Deceased tenants.

A lease between a tenant and a landlord shall cease to exist upon the death of the tenant provided the tenant's estate pays for any rent due for the apartment if it is still being used by the heirs of the deceased tenant. Once all personalty and belongings of the deceased have been removed, the lease shall expire.

§ 325-30 Annual reviews.

The Board shall annually review each of the provisions of this chapter and recommend to Council all changes it deems appropriate to reflect change of conditions affecting the local rental housing market.

§ 325-31 Tax appeals and reductions.

In the event a tax appeal is taken by the landlord and the landlord is successful in the appeal, and the taxes are reduced, or if taxes are decreased by virtue of other circumstances, 75% of the net benefit of the decrease shall be credited to each rental unit in proportion to its pro rata unit tax burden. No landlord may request or receive any increase in rent unless and until it has paid all outstanding rebates due pursuant to this subsection.

No landlord may request or receive any increase in rent unless and until it has been certified to the Township of Lawrence that the landlord has remitted the most recent rebate to the tenant under the provisions of this section. The landlords shall post and maintain in a prominent place within its premises, a notice containing a listing of current specific rebates. A failure to comply with the provisions of this section shall also be punishable under § 325-25 above.

§ 325-32 Unit registration.

[Amended by Ord. No. 1315-92]

All landlords of properties covered by this chapter shall register all rental units located therein with the Board. The registration shall include pertinent information related to the rental history and status of the units as required by the Township.

The registration provided for in this section shall be performed annually using forms provided by the Board, with each annual registration due on or before February 15 of the current year. Each registration shall be filed with the Township Clerk, who shall forward such registration to the Rent Stabilization Board for its review. No landlord may request or receive any increase in rent after February 15 of the current year unless and until the landlord has filed the registration required by this section with the Township Clerk. In addition, a failure to comply with the provisions of this section shall also be punishable under § 325-25 above.

§ 325-33 Exemption.

[Amended by Ord. No. 1001-85]

Any new construction rental development providing for 20% set aside to comply with Mount Laurel II low- and moderate-income housing provisions is exempt from Ord. No. 87-84.

§ 325-34 Repealer.

All ordinances and resolutions and all provisions thereof inconsistent or conflicting with the provisions of this chapter are hereby repealed to the extent of such conflict or inconsistency; provided, however, that the provisions of Ord. No. 954-83 (Ord. Nos. 954-83, 997-84 and 1001-85 are contained in this chapter.) adopted September 7, 1983 as amended and supplemented, shall remain fully enforceable for the period during which they were in effect.