[HISTORY: Adopted by the City Council of the City of Orange
Township 12-16-86 by Ord. No. 71-86. Amendments noted where applicable.]
Editor's Note: Ord. No. 71-86 superseded former Ch. 166, Rent
Control, adopted 11-15-76 as Ord. No. 27-76, as amended.
[Amended 5-3-1994 by Ord.
No. 17-94; 11-1-2005 by Ord. No. 32-2005; 10-16-2018 by Ord. No. 43-2018]
As used in this chapter, the following terms shall have the
meanings indicated:
Fit for habitation as defined by the statutes, codes and
ordinances in full force and effect in the State of New Jersey, County
of Essex and the City of Orange Township and occupied and offered
for rent.
A permanent improvement not already required by law or by
lease that is reasonably expected to last more than one year. Normal
upkeep, maintenance and repair are not "capital improvements." The
actual cost of the "capital improvement" may be recovered by the landlord
up to the useful life in equal monthly installments. (See Appendix
attached to this chapter as representative sample of improvements
and their useful life.[1]) The conversion of one heating system for another is not
to be deemed a "capital improvement."
Any building or structure rented or offered for rent to one
or more tenants or family units. Exempt from this chapter are hotels,
motels and housing units of three units or fewer and four-family houses
where the owner is an occupant of one of the living units. A dwelling
unit detached but on the same block and lot as other housing units,
whether owner-occupied or rented, shall be included as a dwelling
unit for the purpose of this definition. Units where rent is determined
as a factor of income and units receiving state or federal subsidies
directly to the owner are likewise exempt. Also exempted are those
units which have been rehabilitated under the Home Rental Rehabilitation
Program as administered by the City of Orange Township Division of
Housing and units receiving Section 8 rent subsidies or federal housing
vouchers. In these units, rents will be allowed to be raised to, but
will not exceed, the allowable affordable rents as established by
the Home Rental Rehabilitation Program. These units will be exempt
only during the unit's tenure in the Home Rental Rehabilitation Program.
The actual cash contribution of the purchaser at the time
of closing of title and any principal payments to outstanding mortgages.
Equity will also include capital improvements made by the record owner
of title prior to the effective date of this chapter and for which
no capital improvement rent increase has been granted.
Includes that portion of a dwelling rented or offered for
rent for living and dwelling purposes with all privileges, services,
furnishings, furniture, equipment, facilities and improvements connected
with the use or occupancy of such portion of the real property.
The landlord recovered possession of the housing space or
dwelling for one of the reasons outlined in the New Jersey Statutes,
N.J.S.A. 2A:18-53 and 2A:18-61.1 et seq., its amendments and supplements
thereto.
The amount of total rentable space applicable to any given
housing space, measured either in terms of rooms or square footage.
Includes all spaces used for the parking of motor vehicles,
whether indoor or outdoor, when rented by a tenant from his landlord,
or its agent, located separate and apart from the rented housing space.
Any tenancy for less than a year, whether evidenced by writing
or oral, including, but not limited to, a month-to-month tenant, a
week-to-week tenant or a tenant-at-will.
Those tenants whose occupancies have commenced prior to the
conversion of any building, structure or unit to condominium ownership,
whether or not the building or structure consists of two housing units
or less, or whether the ownership is by one or more individuals or
persons or entities, and the fixing of rents shall be subject to the
provisions of this chapter and those rights afforded tenants pursuant
to N.J.S.A. 2A:18-61.1 et seq.
One shall be deemed a qualified senior tenant if they are
65 years of age or older.
Any price for the use of housing space. It includes any charge,
no matter how it is set forth, paid by the tenant for the use of any
service in connection with the housing space. Security deposits and
charges for accessories, such as boats, mobile homes and automobiles
not used in connection with the housing space, shall not be construed
as "rent." The definition of "rent" shall not be considered violated
for the purpose of collecting late fees, legal fees, court costs or
damages which are outlined in a landlord's written lease.
A statement that the landlord or its authorized agent is
required to execute and certify and submit to the Office of Rent Leveling
as of March 1 of each year, or upon commencement of a new tenancy,
which shall provide an accurate list of rents charged as of the date
of said tenant filing, the name and apartment number of each tenant,
and whether said tenant is on a lease term or is a periodic tenant,
and whether the tenancy is created under a written or oral lease or
agreement, and the annual renewal date for said unit and the commencement
date of the tenancy. The Rent Leveling Board is authorized to promulgate
such rules, regulations and forms necessary to carry out the provisions
of this requirement.
Any action of a landlord, its agents or representatives as
defined in N.J.S.A. 2A:42-10.10, its amendments and supplements thereto.
The provision of light, heat, hot water, maintenance, painting,
elevator service, air conditioning, storm windows, screens, superintendent
service and any other benefit, privilege or facility connected with
the use or occupancy of any dwelling or housing space.
Refers to an additional charge or surcharge over and above
the rental which is due to new or additional services. Existing services
may be subject to a surcharge under extenuating circumstances as may
be determined pursuant to procedures set forth in this chapter.
That the housing space and dwelling are free from all heat,
hot-water, elevator and all health, safety and fire hazards as well
as 90% qualitatively free of all other violations of the Orange Property
Maintenance Code[2] and the Regulations for Construction and Maintenance of
Hotels and Multiple Dwellings promulgated by the State Department
of Community Affairs, N.J.S.A. 5:10-1.1 et seq., and other applicable
ordinances of the City of Orange Township.
That new base rents may be established for substantially
rehabilitated dwellings or housing space which has been determined
to be uninhabitable for reasons such as, but not limited to, substantial
destruction, damage, vandalism, Fire or Housing Code violations affecting
the health, welfare, safety and sanitary conditions for which extensive
renovation and repairs are required. In addition thereto, for dwellings
or housing space or units which are vacant, or as a result of the
need for repairs and renovation may become vacant, no application
for exemption of the annual percentage increase and the establishment
of a base rent may be approved unless the landlord spends an amount
equal to 50% of the dwelling (building) or housing space (unit) assessed
value multiplied by the average ratio of assessed to true value of
real property (N.J.S.A. 54:3-17 to 54:3-19), commonly known as "Section
123." Both the assessment and the Section 123 ratio shall be those
figures promulgated and fixed according to the law as of the date
of the landlord's application. Debt service finance charges and interest
shall be excluded in calculating and determining the expenditures
made by the applicant. Regular maintenance, painting and cosmetic
repairs or normal wear and tear resulting in appliance replacement
shall not be considered a "substantial rehabilitation," except as
otherwise provided for in this chapter.
That in the event a tax appeal is taken by the landlord as
of and continuing from the effective date of this chapter, in which
a landlord is successful in said appeal and the taxes/assessment is
reduced, the tenant shall, within 90 days of the final adjudication,
receive 50% of said reduction after deducting all reasonable expenses
incurred by the landlord in prosecuting the appeal. The reduction
may be paid directly to the tenant or as a credit off of future rent
and shall be calculated based upon the tenant's percentage of housing
space within the building or structure in which the reduction is applied.
The landlord shall provide documentation of said refund to the Office
of Rent Leveling within 120 days of the final adjudication. The documentation
can either be a copy of the check issued to the tenant or a notarized
affidavit by the landlord articulating the amount and date of the
direct payment or credit issued to the tenant.
A.
There is hereby created a Rent Leveling Board within the City of
Orange Township, which shall be constituted of seven (7) members who
shall serve without compensation, and at least two (2) members shall
be landlords owning multi-dwelling property of four (4) units or more
which is located within the city; two (2) members must be tenants
living within the city; and three (3) members shall be homeowners
living within and owning property located within the city, which property
shall not be the subject of the provisions of this chapter. The Chairperson
of the Board shall be selected by a majority of the members.
B.
The City Council shall appoint each of the members constituting the
Rent Leveling Board for a term of two (2) years. Three (3) alternates,
one (1) from each of the above categories, shall be appointed to the
Board by the Mayor, each for a two-year term. Said alternates shall
serve in rotation during the absence or disqualification of any regular
member or members. An alternate member shall be entitled to sit with
and participate as a member in any meeting of or hearing before the
Board. An alternate member who has attended the full hearing or hearings
and all pertinent meetings may participate in the Board's determination
during the absence or disqualification of any regular member.
C.
No member or alternate member of the Board shall be permitted to
act on any matter in which he or she has, either directly or indirectly,
any personal or financial interest. Members and alternate members
may be removed for inefficiency, neglect of duty or malfeasance in
office by the City Council, and any Board member who is absent, without
excuse, from three (3) or more conference meetings or public hearings
during the course of a calendar year may be subject to removal from
the Board by the City Council.
D.
Nothing in this chapter shall abrogate, dissolve or affect any of the powers, rent restrictions, authority or actions heretofore held or taken by the Rent Leveling Board as established in Article XIV, § 4-60, as further amended by Ordinance No. 2776, and Ordinance No. 16-78, and Ordinance No. 42-79 and any ordinances which the above ordinances amended or supplemented; and all actions and opinions heretofore taken or made shall remain in full force and effect. The fixing of rents and judgments, findings and conclusions with respect to the control of rents within the City of Orange Township shall remain unimpaired under this chapter and shall be subject to this chapter in future determinations.
A.
The Rent Leveling Board is hereby granted and shall have and exercise,
in addition to other powers herein granted, all the 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 act, 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 City Clerk. The City Council may
reject any rule of the Board within thirty (30) days of the filing
of such rule with the City Clerk, and such rejected rule shall be
deemed null and void and of no force. This provision shall not limit
the right of the City Council to promulgate and issue procedural rules
and regulations as it may deem necessary to implement the purposes
of this chapter.
(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 not otherwise resolved
between the landlord and tenant pertaining to rollback of rent due
to diminution of services, deterioration of housing space or failure
to perform ordinary repairs, replacements and maintenance, and excessive
rental increases, all in accordance with the provisions of this chapter.
B.
The Board shall give both landlord and tenant reasonable opportunity
to be heard before making any determination. All determinations of
the Board must be approved as to law and form by legal counsel, and
all determinations must be in writing in the form of a resolution.
It is hereby established pursuant to § 4-82.1 and as further implemented by this chapter in the administration herein an Office of Rent Leveling. The Office of Rent Leveling shall come within the jurisdiction of the Department of Community and Economic Development and shall consist of the position of Rent Leveling Administrator, in the unclassified position, and a Secretary, a Housing Inspector and such other staff members, in classified positions, as may be required or as otherwise provided for by ordinance. The Office of Rent Leveling shall have the following powers and functions:
A.
To obtain, keep and maintain all relevant records and other data
and information.
B.
To supply information and assistance to landlords and tenants and
to bring together tenants and landlords in informal conferences and
suggest resolutions of conflicts between them in order to assist them
in complying with the provision of this chapter. These informal conferences
and resolutions that may be achieved shall refer only to matters regarding
rent decontrol and rent rollback as a result of diminution of services
and maintenance. Any resolution hereafter determined by the parties
with the assistance of the Office of Rent Leveling shall be in the
form of a written agreement and referred to the Rent Leveling Board
as the basis of a legal and binding resolution. No disposition of
any conflict, however, shall be violative of the provisions of this
chapter as it pertains to rent increases.
C.
To notify landlords that there is no record of compliance by the
landlord of the annual recording and registering of a rent roll or
any periodic modification of the rent roll.
D.
To accept and process complaints from tenants concerning illegal
rent increases, diminution of services or excessive rental increases
and to investigate, when applicable, the complaints prior to forwarding
them for a hearing before the Rent Leveling Board.
E.
To accept complaints or applications from tenants and landlords,
provided that all claims are sworn to and acknowledged by a person
authorized by law to administer oaths, or certified in lieu of oath,
pursuant to the Rules of Court.
F.
To accept, process, review and investigate, where applicable, applications
from landlords for rental increases pursuant to a hardship or capital
improvement and surcharges for increased services or exemption from
rent control or any other applications with respect to the adjustment
and modification of rent as to a unit or as to a multiresidential
dwelling.
G.
To accept and forward to the Hearing Officer applications for hardship
rental increases, capital improvement, service surcharge increases
or petition to be exempt from the provisions of this chapter.
H.
To maintain an up-to-date public directory of all controlled units,
with maximum allowable rents for each unit.
I.
To schedule all appeals before the Hearing Officer and Rent Leveling
Board and coordinate operations of the Rent Leveling Board with other
involved city departments or offices.
J.
To record and list all building violations on the Rent Roll Registration
List for each dwelling and/or housing unit covered by ordinance and
make them available for public inspection.
K.
To provide a yearly report to the Mayor, City Council and Rent Leveling
Board detailing the number of complaints received, the name of the
complaining party, the dwelling or housing unit owner against whom
said complaint was initiated, the listing of applications received
and processed and determination made with respect to rental decontrol,
hardship application, capital improvement and surcharge or exemption,
and rollback, and to set forth the address of the dwelling or housing
unit in which said complaints or applications were received and processed
and the ultimate determination, either by the Rent Leveling Office,
Hearing Officer or Rent Leveling Board. This report shall include
the determination resulting from a disposition of a conflict between
landlord and tenant which was disposed of by the Office of Rent Leveling.
L.
To bring appropriate legal charges against a violating party as provided
by this chapter.
M.
To secure the execution of the Chairperson of the Rent Leveling Board
and/or the Hearing Officer, where applicable, upon resolutions or
orders, and to submit the original of said documents to the City Clerk
and retain a confirmed copy of such documents in the Office of Rent
Leveling and to submit a confirmed copy of such documents to both
tenant, tenant's representative, landlord, its agent or representatives
and, where applicable, to the Tax Assessor and Department of Community
and Economic Development, Division of Licensing and Inspections.
N.
To perform such other duties and to carry out such other functions
as are consistent with this chapter in maintaining the effective and
efficient operation of the Office of Rent Leveling.
A.
Upon appointment by the Mayor, a Secretary shall be established for
and on behalf of the Rent Leveling Board to perform in a secretarial
capacity at its conference meetings and public hearings in the taking
of minutes and transcribing them in typewritten form, including the
determinations and decisions of the Board. The Secretary to the Office
of Rent Leveling shall also perform in a secretarial capacity at the
public hearings held by the Hearing Officer in the taking of minutes
and transcribing in typewritten form the determination and decisions
of the Hearing Officer.
B.
The typewritten minutes of the meetings, determinations and decisions
of the Rent Leveling Board and the Hearing Officer shall be submitted
to the Office of Rent Leveling, where they shall remain on file.
C.
The Mayor shall have the right to appoint an Attorney, licensed in
the State of New Jersey, to the Rent Leveling Board, who shall act
as its legal counsel, rendering advise when called upon and offering
recommendations at the conference and public meetings and who shall
be responsible for the preparation and drafting of all Rent Leveling
Board resolutions or orders.
There shall be established within the jurisdiction of the Office
of Rent Leveling, by appointment of the Mayor, upon advice and consent
of the City Council, a Hearing Officer, who shall be assigned and
delegated by the Office of Rent Leveling to hear and adjudicate applications
or petitions for the increase in rent due to increased services or
increased services based upon nonmaintenance replacement improvements
to property mandated by state statute, ordinance or regulation, as
well as all petitions seeking to be exempt from the provisions of
this chapter.
A.
Duties of the Hearing Officer shall include, in conjunction with
the Office of Rent Leveling, a review of all applications to assure
that they are completed and that all relevant information has been
provided and the affected and interested parties have been properly
notified of the proposed application and hearing date. The Hearing
Officer shall conduct, within the discretion of the Hearing Officer,
a preliminary pretrial documentation and/or mediation meeting upon
review of the completed reports and supportive documentation in an
attempt to clarify and define the issues and/or to resolve any disputed
issues between the landlord and tenants and, if agreed by the parties,
prepare a voluntary settlement statement consistent with the regulations
of the Office of Rent Leveling and the provisions of this chapter.
B.
The Hearing Officer shall conduct a public administrative hearing
upon proper notice to all parties and to render a decision according
to the guidelines and regulations established by the Office of Rent
Leveling and the provisions of this chapter.
C.
The Hearing Officer assigned to a particular case shall, within thirty
(30) days after conclusion of the public hearing, file a written decision
with the Office of Rent Leveling. The decision shall contain the name
and address of the applicant, the address of the unit(s) or building
which was the subject of the hearing, the names and addresses of all
witnesses who testified at the hearing and findings of fact based
upon all the relevant, pertinent and credible evidence, both testimonial
and documentation produced at the hearing, and a conclusion or decision
and the basis for that decision as it pertains to the findings of
fact. Attached to the decision shall be all documents and papers received
in evidence and a tape recording, transcript or minutes of the proceedings.
In lieu of attachment of documents or items received in evidence,
the decision should identify the document or items received in evidence
and a description, and if said evidence is not attached to the decision
it shall be available for inspection at the Office of Rent Leveling.
The application of the landlord shall be attached to the decision.
A copy of the decision only shall be sent or personally served upon
the applicant or any interested or affected party. The Office of Rent
Leveling shall review the decision of the Hearing Officer only as
to form and content and shall make arrangements that the applicant
and interested or affected parties are notified of the decision.
D.
The Hearing Officer, having been delegated those duties set forth
in this section, may, within his or her discretion, call witnesses
for the purpose of clarifying issues or call upon their expertise
in areas not limited to but including accounting, real estate appraisal,
real estate management, building maintenance and property management.
The Hearing Officer may call as witnesses subcode officials of the
municipality and building tradesmen and banking and financial consultants.
E.
The Hearing Officer may be retained on a part-time basis and shall
be paid within the discretion of the Administration, either on an
hourly basis, per diem or per case fee. The Hearing Officer should
be familiar and have a background either in law, accounting or business
and including therein a general knowledge of financing and real estate.
The Hearing Officer may be either a tenant or landlord subject to
the limitations as set forth in this chapter.
F.
The Hearing Officer will not be permitted to act on any matter in
which he or she has, either directly or indirectly, any personal or
financial interest or has a personal bias or prejudice concerning
a party, or personal knowledge of disputed evidentiary facts concerning
the proceeding, or when the Hearing Officer is individually or a spouse
or a minor child is residing in his or her household, has a financial
interest in the subject matter in controversy or any other interest
that could be affected by the outcome of the proceeding when a spouse,
or a person within the third degree or relationship to either of them,
is a party to the proceeding or is in the employ of or is associated
with either applicant or any interested or affected party.
The right of appeal from a decision of the Rent Leveling Board
or the Hearing Officer, by either the landlord or tenant, or both,
to an appropriate court of law shall be reserved as a matter of right.
The appeal shall be filed within the time limitations for appealing
municipal administrative rulings as established by the rules governing
the courts of the State of New Jersey.
[Amended 9-6-1994 by Ord.
No. 32-94; 10-16-2018 by Ord. No. 43-2018]
Establishment of rents between a landlord and a tenant to whom
this chapter is applicable shall hereafter be determined by the provisions
of this chapter. Except for properties rented to qualified senior
tenants, at the expiration of a lease or at the termination of a lease
of a periodic tenant (for less than one year), no landlord may request
or receive an increase in rent that is greater than 5% per annum;
except that, for those tenants who supply their own heat, the increase
shall be 4% per annum. For a qualified senior tenant, said landlord
shall not seek or demand an increase in rent which exceeds 2% of the
rent charged during the preceding twelve-month period. In an apartment
that contains multiple persons, the 2% cap shall only apply if a qualified
senior tenant is identified on the lease as a tenant in the subject
apartment.
A.
For a year-to-year tenant or for a tenant under a lease term in excess
of one year, the landlord, owner or agent shall not seek or demand
an increase in rent which exceeds the percentage of the prior rent
for each twelve-month period the existing lease has been in effect.
B.
No more than one such rental increase in any one twelve-month period
shall be permitted, irrespective of the number of different tenants
occupying the housing unit during a twelve-month period, except as
otherwise provided by this chapter. Any renewal increase at any other
time, unless otherwise provided herein, shall be voided.
C.
The landlord shall supply and deliver to either a new tenant or to one from whom it seeks an increase information, in writing, which shall state the rent paid by all tenants who occupied the apartment unit during the prior twelve-month period, that the landlord has complied with the provisions of § 166-17 (Recording and registering rents), the annual percentage for which an increase is sought and the calculation reflecting the new rent. No rental increase of any amount or percentage shall be demanded, received or accepted unless the landlord has complied fully with the provisions of § 166-17 (Recording and registering rents). In the event that a landlord, at the time he demands a rental increase from a tenant, fails to have a current rent roll on file, he shall be precluded from obtaining any increase from the tenant until such time as the current rents are registered and filed with the Office of Rent Leveling.
E.
A complaint of a tenant challenging the propriety of any increase
based upon a violation of this section shall be filed within six weeks
from the date when the proposed increase is to take effect. The Rent
Leveling Board, for good cause shown, such as, but not limited to,
the disability of the tenant, a physical or mental impairment, harassment,
intimidation or coercion by the landlord, its agents or representatives,
or if the landlord does not inform or misinforms a tenant concerning
the previous rent paid and/or the proper calculation of the rental
increase or an unusual hardship, may waive the six-week period and
accept, hear and adjudicate a complaint of an illegal increase.
F.
The limitations of rental increases in this section shall be applied
to any rent increase to become effective on or after January 1, 1987,
and any renewal or new leases or tenancies as of that date shall reflect
a monthly rent consistent with this section.
G.
Rents increased, paid or collected on or after the effective date
of this chapter shall reflect an increase of no more than that allowed
under this section. Those rents paid over and above the allowable
rent for any apartment unit shall be credited to the tenant as a reduction
in rent in the following month following the effective date of this
chapter; or, in the case of a tenant who has moved, the excess moneys
paid shall be sent to the former tenant within 30 days of enactment
by law of this section.
H.
All limitations on rental increases as applied to housing space under
the above subsections also apply as limitations on rental increases
for parking spaces. All notice requirements, time limitations and
other applicable duties or obligations of the landlord as set forth
in this chapter are hereby made applicable to increases in rent for
parking spaces. The aggregate amount of rent and parking charges for
new and existing tenants in rent-controlled units shall not exceed
the allowable annual increase under this chapter. New tenants in decontrolled
units may be charged a separate fee for one or more parking spaces.
Once under rent control, the aggregate amount of rent and parking
charges may not exceed the allowable annual increase under this chapter.
I.
It shall be unlawful for any landlord to charge a tenant for the
use of a washing machine, refrigerator, cooking stove, air conditioner
or any other privileges or amenities, including, but not limited to,
parking spaces, when and wherever such appliances, privileges or amenities
were previously provided, permitted and allowed to that tenant by
the landlord without extra charge, either by lease, use or custom.
The use of such appliances, privileges or amenities in connection
with the use or occupancy of the dwelling unit shall be considered
as included in the rent. Any extra charge in such a situation shall
be considered as an unauthorized increase in rent and shall be unlawful,
unless, upon good cause, it is approved by the Rent Leveling Board.
J.
In the event that a landlord voluntarily determines to reduce the
rent charge for a housing space or unit or otherwise determines not
to increase the rent by the maximum amount set forth in this section,
such landlord shall not be deemed to have waived the right to reinstate
the rent charge immediately prior to such reduction and to add on
whatever annual permissible increase he would have been entitled to;
provided, however, that the landlord, within 30 days after such determination,
shall notify the affected tenant and the Office of Rent Leveling,
in writing, of such rent reduction and/or permissible rent increase
not previously charged; provided further, however, that notwithstanding
anything to the contrary herein, the landlord shall not be permitted
to increase the rent on account of a voluntary rent reduction or the
forbearance of any otherwise permissible rent increase that occurred
more than two years earlier.
K.
No landlord of a dwelling or housing space subject to this chapter
shall serve a notice to quit upon any tenant or institute any action
against a tenant to recover the possession of a dwelling unit or housing
space in reprisal for the tenant's efforts to secure or enforce any
rights granted under this chapter or any other ordinance, law or regulation
of the City or State of New Jersey or the United States of America
or on account of the landlord's failure to obtain the approval of
any application or petition for a rent increase, surcharge or exemption.
The institution of any proceeding by a landlord, its agent or representative
against a tenant or the receipt by the tenant of a notice to quit
or any substantial alteration of the terms of the tenancy without
cause after the tenant attempts to secure or enforce its rights, or
if the landlord has failed to obtain approval of any application,
shall create a rebuttable presumption that the landlord's action is
a reprisal against the tenant.
A rental increase which exceeds that allowed by this chapter
may be voided in its entirety by the Rent Leveling Board and shall
be adjusted by the Rent Leveling Board to conform to the amount allowed
by this chapter. Such adjustment may be made prior to a hearing before
the Rent Leveling Board by the Office of Rent Leveling in the form
of an informal conference and upon notice to all parties. Any adjustment
by the Office of Rent Leveling shall be reduced to writing and confirmed
by the Rent Leveling Board. Any rental increases in excess of that
allowed by this chapter and paid by the tenant may be returned to
the tenant or credited off of future months rent.
A landlord shall submit an application to the Office of Rent
Leveling for an additional surcharge due to capital improvements to
the housing space or dwelling unit or for improved or increased services
or nonmaintenance or replacement improvements to property mandated
by state statute or regulation or ordinance.
A.
Preliminary hearing. A landlord may, prior to undertaking an expenditure
for a capital improvement or improved or increased services, or services
mandated by statute, regulation or ordinance, seek preliminary approval
by filing an application with the Office of Rent Leveling. The application
shall be forwarded to the Hearing Officer, who shall conduct a preliminary
review hearing as to whether and to what extent and benefit the proposed
expenditure would be covered by this section. No expenditure as to
dollar amount shall increase the rent of any tenant until the capital
improvement or surcharge which received preliminary approval is supported
by documentation, including canceled checks, receipts, bills, vouchers
and/or estimates. No capital improvement surcharge or other surcharges
shall be effective until the improvement or increased services are
completed and subject to a final hearing before the Hearing Officer.
B.
The Hearing Officer shall hold a public hearing on the landlord's
application either for preliminary approval or final approval. At
least ten (10) days prior to the public hearing, the landlord shall
notify each tenant by certified mail or by personal service (return
receipt requested forms are not required) as to the date, time and
place of the hearing. Certified mail receipts must bear the name of
each tenant so served and be hand canceled by the post office with
a postmark date clearly visible. This notice shall also state, for
capital improvements and nonmaintenance or replacement improvements
or increased or improved services, the projected or final cost of
the improvement(s), the number of years of useful life thereof as
claimed by the landlord for purposes of depreciation for federal income
tax purposes, the cost of the improvement, the total number of rooms
contained for all housing space for which such rental increase is
sought, the total number of rooms occupied by the tenant(s) and the
monthly surcharge the landlord is seeking from the tenant.
C.
Such expenditures may include the fair market value of materials
and services that are furnished by or without charge to the landlord.
The landlord shall propose to apportion the annual cost of the completed
improvement or service per year of useful life among the tenants and
the dwelling in accordance with one (1) of the following methods:
(1)
If the capital improvement benefits certain housing spaces only,
then the cost of those improvements shall be surcharged to only those
units.
(2)
If the capital improvement benefits all housing spaces but in varying
degrees according to the amount of rooms in each individual housing
space, then the cost of the improvement shall be charged according
to the number of rooms in each individual dwelling unit in proportion
to the total rentable rooms in the building or buildings.
(3)
If the capital improvement is equally beneficial to all housing spaces
regardless of the living area within any housing space, then the cost
of the improvement shall be distributed equally among all dwelling
units.
D.
No application for preliminary or final approval shall be accepted
for processing by the Office of Rent Leveling until the required fee
has been paid and the landlord obtains a certificate of substantial
compliance and provides the same as an attachment to its application.
In the event that the landlord's application is to remedy a violation
which has prevented the landlord from obtaining a certificate of substantial
compliance, then the Hearing Officer, within his or her discretion,
may proceed to either preliminary or final approval, as the case may
be, and set forth in his or her decision that any expenditure of funds
in accordance with the application shall be expended primarily to
remedy and correct violations of the Housing Code of the City of Orange
Township. A decision allowing a conditional surcharge based upon the
utilization of funds to remedy an outstanding violation may, if violated,
subject the landlord to a rebate of surcharges collected and to forfeit
future surcharges during the remaining useful life of the improvement
or increased or improved service.
E.
Total surcharges shall not exceed at any one time five percent (5%)
of the tenant's monthly rent in effect at the time of approval of
the surcharge. Annual capital improvement or other surcharges shall
be payable monthly in equal installments, commencing the first day
of the second month following approval of the application or upon
completion of the improvement or increased service, whichever event
occurs last. In the case of a surcharge imposed at the expiration
of a lease term or at the termination of a periodic tenancy, it shall
be imposed on the date the new tenancy begins, provided that the landlord
shall give notice to all affected tenants as to the amount of surcharge
and the period for which the surcharge shall be applied. This notice
shall be given at least thirty (30) days prior to the date in which
the landlord seeks to collect the surcharge. All surcharges granted
shall be cumulative with all other surcharges. The monthly surcharge
paid by the tenant shall be one-twelfth (1/12) of the tenant's surcharge.
Payment shall be made during the useful life of the capital improvement
or nonmaintenance replacement improvement mandated by state statute,
regulation or ordinance (not to exceed the total cost thereof) or
for the period during which the landlord shall continue to furnish
the increased service.
F.
An application for a surcharge shall be filed within and not later
than one (1) year after the capital improvement or replacement improvements
to property are completed or not later than one (1) year after the
commencement of providing increased or improved services.
G.
The decision of the Hearing Officer, either preliminary or final
approval, shall be in writing and shall set forth the name and address
of the applicant, the address of the housing space or dwelling unit
which is the subject of the hearing, the names and addresses of the
parties to the hearing and of all witnesses and of all parties who
testified at the hearing, a finding of fact and a conclusion based
thereon. The determination shall incorporate all pertinent and relevant
evidence and the basis of an extent to which the Hearing Officer determines
the application meets the standards and guidelines of a capital improvement
or that services have been increased and/or improved.
A.
The rent charged or increased with respect to new and substantially
rehabilitated dwellings or housing space shall be exempt from the
provisions of this chapter upon the following conditions, except as
set forth below.
B.
Despite any exemption for any housing space or dwelling unit pursuant to this section, landlords, prior to notifying a tenant of an increase in rent, shall certify that the dwelling and housing space is in substantial compliance pursuant to the Code of the City of Orange Township, § 156-1 et seq.
C.
A landlord or managing agent offering rental for the first time and thereafter to any subsequent tenant of a newly constructed dwelling or housing space or a substantially rehabilitated dwelling unit shall advise and inform prospective tenants, either in its lease application, lease or in other written form pursuant to the section set forth above, that the housing space or dwelling unit is in substantial compliance and that the initial rent shall not be restricted and that any subsequent rental increases thereafter shall be subject to the Rent Control Ordinance of the City of Orange Township, § 166-1 et seq., and that verification of the rental status may be obtained by contacting the Office of Rent Leveling of the City of Orange Township.
D.
Notwithstanding the provisions of § 166-17 (Recording and registering rents), any building or units subject to this section shall be required to comply with the requirements of filing a rent roll and shall be subject to the payment of the registration fees set forth in this chapter and Chapter 88 of the Code of the City of Orange Township. No rental increase shall be demanded, received or accepted by the landlord unless it has complied fully with the provisions of § 166-17 (Recording and registering rents), and failure to comply will preclude the landlord from obtaining any increase from a tenant until such time as the current rents are registered and filed with the Office of Rent Leveling.
E.
Rents established for substantially rehabilitated dwellings which are occupied or housing space or units which the units or individual housing space has been determined to be uninhabitable for reasons such as but not limited to substantial destruction, damage, vandalism, Fire or Housing Code violations affecting the health, welfare, safety and sanitary conditions for which extensive, material and permanent renovation and repairs are required may be exempt from the limitation of the annual rent increase (§ 166-8) by the Hearing Officer or as otherwise by the Rent Leveling Board for a period of one (1) year.
F.
Upon the completion of any new construction or substantial rehabilitation to any unoccupied multifamily buildings or particular or specific housing space or units thereafter rented for the first time shall be exempt from the limitations of the annual rent increase (§ 166-8) for a period of three (3) years.
G.
Any newly constructed addition to a preexisting dwelling which is rented for the first time shall be exempt from the provisions of the limitation of the annual rent increase (§ 166-8) for a period of three (3) years.
H.
The landlord or owner of housing space or a building which seeks to substantially renovate and rehabilitate the unit or building shall apply to the Office of Rent Leveling for an exemption under this section. Applications must be filed with that Office, and the Division of Licensing and Inspections and/ or the Housing Division shall inspect the dwelling or housing space for which the application pertains. No application shall be processed unless accompanied by the appropriate fee as contained in Chapter 88.
I.
Upon the filing of an application, the landlord shall submit a plan
of rehabilitation, including a description of the project, housing
units involved, projected or anticipated costs and supportive data,
such as appraisals or estimates and the projected completion schedule
and apartment numbers and names of tenants and family members who
will be affected by any relocation during the renovation period. The
application shall be filed with the Office of Rent Leveling and forwarded
to the Hearing Officer, who shall conduct a preliminary review hearing
as to whether and to what extent and benefit the proposed project
falls within the purview of this section. Preliminary approval may
be granted by the Hearing Officer, whose decision may be conditioned
upon the receipt of further information or documentation. Such decision
and approval, however, shall be contingent upon final hearing and
upon completion of the projected rehabilitation and renovation. Any
landlord seeking a substantial rehabilitation exemption shall file
the application, either preliminary or final, with the Office of Rent
Leveling on such forms as shall be prepared by the Office of Rent
Leveling consistent with the subsections set forth herein, or any
additional information as may be required by the Rent Leveling Board.
J.
Prior to the date of hearing, the landlord or managing agent shall
serve, within ten (10) days of the hearing, by certified mail or personal
delivery, upon those tenants who reside in the dwelling and who resided
in the affected housing unit, a notice of the petition, setting forth
the basis for the same and attaching a copy of the application. In
the event that a tenant cannot be located or his or her address is
unknown, the landlord shall certify, in writing, that efforts have
been made to determine the whereabouts of the tenant.
K.
With reference to the requirements as set forth in Subsection J above, the definition of a tenant who resided in the affected unit is one who has temporarily relocated within or without the dwelling or occupied unit next preceding the commencement of rehabilitation, reconstruction and renovation of the dwelling and housing unit which is the subject matter of the exemption application.
L.
Permits, as required by law are to be secured from all agencies for
improvements and alterations, and the work must adhere to appropriate
code standards and must be inspected and approved by all agencies
having control and jurisdiction to issue licenses and permits. A certificate
of habitability or a certificate of occupancy must be obtained as
required by law.
M.
The landlord, upon approval of its application after final hearing, shall be obligated upon the rerenting or commencement of a new tenancy of the affected unit or building to register the rents with the Office of Rent Leveling and shall be obligated to comply with all terms and conditions of § 166-16 (Recording and registering rents) during the exemption period and thereafter.
N.
Any tenant temporarily relocated or displaced as a result of the
landlord rehabilitating, repairing or renovating a specific housing
unit shall be given the right of first refusal to enter into or continue
its occupancy at a rental charge established by the Hearing Officer.
The landlord shall certify in writing, either affidavit form or by
certification, that is has notified the tenant of the new rental charge
and his right to exercise first preference in occupying the affected
housing unit.
O.
Landlords or applicants are required to comply with those provisions
of the Anti-Eviction Law, N.J.S.A. 2A:18-61.1 et seq., in situations
which require the landlord's removal of a tenant in order to comply
with local or state inspections which have cited the landlord for
substantial violations affecting the health and safety of occupants;
and without such removal, it is unfeasible to comply with the rehabilitation
and renovation of the dwelling or housing space. The applicant shall,
pursuant to this chapter and in accordance with law, provide in its
application or at the time of hearing the notice that is required
pursuant to regulations of the Department of Community Affairs, including,
without limitation, N.J.A.C. 5:11-7.1 et seq. In those situations
where substantial rehabilitation undertaken by the landlord realizes
the relocation of a tenant, the landlord shall comply with and provide
evidence at or prior to the hearing of the pertinent provisions of
N.J.S.A. 52:31B-1.
P.
A determination made by the Hearing Officer or Rent Leveling Board, as the case may be, approving an exemption from the limitation of the annual rent increase shall thereafter become known as the revised base rent for such dwelling or housing space or unit, and all rent increases subsequent to the exemption period shall again be subject in all respects to the provisions of § 166-1 et seq.
Q.
In those cases where the dollar amount expended does not meet the criteria as set forth in the formula provision for substantial rehabilitation (see § 166-1), the applicant will not be precluded from filing an application and having the matter determined at a preliminary hearing by the Hearing Officer. The Hearing Officer may recommend preliminary approval subject to a final review. The basis for any determination by the Hearing Officer in which the applicant seeks an exception from the criteria shall take into consideration but shall not be limited to the following:
(1)
The age of the building.
(2)
Reasons for the repair, renovation and rehabilitation of the affected
unit or building.
(3)
The size or square footage of the units to be affected for which
the applicant seeks an exemption.
(4)
The extent to which the nature of the rehabilitation upgrades the
habitability of the unit or building.
(5)
The level of rent(s) charged or collected for the units(s) as of
the date of the application.
(6)
The market value rent charged for similar units or housing space
in an unrestricted rental market.
(7)
Expenses incurred or to be incurred, including therein evidence of
bills, invoices, vouchers, canceled checks and contracts evidencing
proof of labor, material or services rendered in the rehabilitation
and renovation of the affected unit, housing space or dwelling.
(8)
The degree to which the anticipated or completed renovation, repair
and rehabilitation benefits the living accommodations of those occupants
residing in the unit or building and the nature and degree of enhancement
and availability of housing stock within the City of Orange Township.
R.
Notwithstanding the provisions as set forth above, the applicant
shall be denied an exemption from the limitations of the percentage
increase if it shall be determined by the Hearing Officer that a tenant
who occupied a unit immediately prior to the landlord's application
or subsequent to preliminary approval shall have vacated the apartment
due to harassment, duress or unreasonable pressures from the landlord,
its agents or representatives. In these circumstances, the landlord
shall file a certificate provided by the Office of Rent Leveling indicating
the name of the vacating tenant, the existing rental and the circumstances
under which the tenant vacated the particular unit. The landlord shall
not be denied an exemption solely under those circumstances in which
the tenant vacates the apartment voluntarily and there is no unreasonable
pressure from the landlord or its agents, or where the tenant vacates
the apartment as a result of a court order from a court of competent
jurisdiction. This ground shall not be available to a landlord who
receives a court order to dispossess a tenant based upon the tenant
holding over and continuing in possession of the unit after the expiration
of its lease term. Circumstances concerning the vacating of a unit
by a tenant and issues raised either by the tenant, the applicant
or the Hearing Officer shall be reviewable at the time of the hearing.
In the event that any factors become known to the Office of Rent Leveling
which are contrary to the applicant's certification as to the reasons
and circumstances surrounding the vacating of a unit or housing space,
the Hearing Officer may, upon application by the Office of Rent Leveling,
the tenant or interested party, seek to rescind the exemption, in
which event the rent shall revert to that rental on the unit or housing
space prior to approval of the exemption, and prosecute the landlord
for violation of this chapter.
S.
Landlords of units, housing space or buildings which are being or
have been renovated and rehabilitated within six (6) months prior
to the effective date of this chapter, and which, as of said date,
remain unoccupied, shall not be precluded from filing an application
for either preliminary or final approval from exemption of the limitation
of the annual increase(s) and shall, where applicable, be governed
by the provisions of this section.
[Added 10-16-2018 by Ord.
No. 43-2018]
Housing developments owned or subsidized by the U.S. Department
of Housing and Urban Development, as well as unsubsidized developments
with HUD-insured mortgages, shall be exempt from the requirements
of this chapter.
Any complaint of an illegal increase or claim to lower rentals must be filed with the Office of Rent Leveling no later than six (6) weeks after the effective date of the disputed increase. For good cause shown and as otherwise set forth in § 166-8E, the Rent Leveling Board may waive the time limitations set forth above.
A.
Rent reductions. Rents charged by the landlord may be rolled back
for any one (1) of the following reasons, if so found by the Rent
Leveling Board:
B.
Any claim for rent reduction for the items enumerated above shall
take into account where there has been a diminution or decrease that
substantially affects the habitability of the housing unit and common
areas of the building. The Rent Leveling Board shall consider during
its hearing and for the purpose of its decision the duration of the
diminution, decrease or interruption of services; the inconvenience
of any interrupted services; the time period and manner in which the
tenant or tenants gave notice to the landlord or its agent to remedy
or restore the matter(s) set forth in the complaint; and the nature
and extent of action taken by the landlord or its agent in response
to these complaints and the overall effect that the diminution, decrease,
interruption or lack of repairs has had upon the general tenant population
of the dwelling. The Rent Leveling Board shall consider whether any
of the complaints are minor and inconsequential as they affect the
habitability of the tenant or tenants residing in the dwelling, as
well as the multidwelling standards promulgated by the Commissioner
of the New Jersey Department of Community Affairs, Division of Housing.
The Rent Leveling Board shall take into consideration whether any
of the repairs or deterioration is attributable to the negligence,
omission or acts of the tenant or tenants.
C.
Any complaints initiated by a tenant or tenants shall relate to a
condition not in excess of three (3) months prior to the filing of
a complaint with the Office of Rent Leveling. A rent rollback may
be both retroactive, but for no longer than a period of three (3)
months, and prospective until such time as the conditions which gave
rise to the complaint are remedied or restored.
Applications to the Office of Rent Leveling for any form of
rental increase, such as but not limited to hardship, capital improvement
or surcharges, substantial rehabilitation of a dwelling or housing
space or any other increase pursuant to a previous resolution, order
or the provisions of this chapter, shall be in the form of an affidavit
or certification, as provided by the Rules of Court, which the applicant
or its authorized agent shall attest to the truth of all information
submitted in support of the application. Any false information contained
in the application or any false data submitted to the Office of Rent
Leveling shall be a violation of this chapter, and the applicant and/or
its agent may be subject to the penalties provided for in this chapter.
Any false information, misrepresentation or incorrect information
contained in the application or submitted to the Office of Rent Leveling,
the Rent Leveling Board or a Hearing Officer may result in a denial
of the landlord's application for rental increase or exemption.
The Office of the Rent Leveling or members of the Rent Leveling
Board and Hearing Officer, in reviewing applications for rent increases,
shall be guided by but not limited solely to the following guidelines:
A.
An application for a rent increase shall include the amount of the
total rents which could be derived for the building if the building
were fully occupied. There may be deducted from this total rental
figure the amount of the rental allocated to actual vacancies in the
building; provided, however, that said vacancy deduction cannot exceed
four percent (4%) of the total rentals which could be derived from
the building if fully occupied. Included in such total rentals shall
be the amount of the rental allocated to any apartment occupied by
the landlord or its agent or superintendent on the premises.
B.
In the event that any vacancies in the building are deliberately
caused by the landlord or if the landlord does not intend to rent
the apartment and desires to keep that apartment vacant, then in such
cases the amount of the rental of such vacancy shall not be deducted
from the gross rentals.
C.
Actual taxes to be paid shall be considered as a tax expense. However,
there shall be deducted from the actual taxes any rebate which the
landlord has or shall receive or any refund received or which shall
be received as a result of a tax appeal.
D.
The actual amount of the water and sewage bills shall be considered
if the same can be ascertained: however, any rebate or adjustment
of such charges shall be deducted from said amount.
E.
The amount of the expense for insurance shall include the actual
amount paid for the year.
F.
The expense for fuel shall be computed by multiplying the actual
amount consumed for the last twelve (12) months prior to the date
of application by the actual price per unit of fuel at the date of
filing the application for the rent increase or at the date of the
hearing, whichever is the greater. However, the reviewing authority
shall take into consideration present market trends and the estimate
of future fuel/gas expense.
G.
In the event that the landlord resides in the building and actually
performs the services of superintendent or janitor, a reasonable amount
shall be credited to the landlord as salary for such services. In
the event that the landlord does not perform such services or does
not perform all the services required for a particular building or
if said services encompass more than one (1) residential building,
then the amount of salary shall be adjusted accordingly and credit
be given only for such services actually performed for the building
or housing unit for which an increase is sought.
H.
In the event that the landlord does not employ someone to manage
the building but actually manages the building himself, such landlord
may be given credit for a management fee not to exceed four percent
(4%) of the gross rentals actually derived for the building. However,
this percentage may be increased or decreased based upon information
supplied by any of the parties to the hearing reflecting charges for
present market value of management services within the City of Orange
Township.
I.
Any expense shall be substantiated with bills and other documentation
sufficient to prove the authenticity and the correctness of the billing,
invoice or voucher. Such proof may be established by canceled checks
and paid bills. The landlord or its agent may be required to provide
the Hearing Officer and/or Rent Leveling Board, as the case may be,
with the last two (2) years' federal income tax return or corporate
tax return or an income/expense or loss statement prepared and certified
by a public accountant of the State of New Jersey.
J.
At the time of the hearing, the applicant shall have the right to
produce evidence to show reasons for bills that are owed. That evidence
can be accepted and used to evaluate the application and received
as an amendment to those facts as stated in the application.
A.
In the event that the landlord cannot meet its mortgage payments,
operating expenses or does not make a fair return on his property,
an appeal may be taken to the Office of Rent Leveling for increased
rentals.
(1)
Notice procedure. Prior to the date fixed for a hearing under this
section and subsequent to the filing of an application with the Office
of Rent Leveling, the landlord shall serve upon each tenant, by registered
or certified mail or personal service, a notice of its intent to seek
a hardship increase and set forth therein the basis for the increase,
the amount of rental increase applied for with respect to the tenants
and the calculation per unit involved. The landlord shall further
post in a lobby of each affected building or, if no lobby, in a conspicuous
place in or about the building or structure a copy of the hardship
application on the forms prescribed by the Office of Rent Leveling.
The application must be posted for at least ten (10) consecutive days
prior to the proposed hearing date. Notices to the tenant shall be
served at least ten (10) days prior to the proposed hearing date.
The time period shall include Saturdays, Sundays and holidays. In
computing any period of time, the day of the service upon the tenant
shall not be included as the day of the act or event from which the
period of time begins to run. The affected tenant(s) shall have the
right to challenge the basis or facts for the hardship increase on
the hearing date. The Hearing Officer shall have the right, after
notice and hearing, to grant or deny a hardship increase with regard
to the rental restrictions and guidelines set forth in this chapter.
(2)
Fair return on invested capital. The landlord may apply to the Office
of Rent Leveling for an increase upon and to the extent that its return
on invested capital is less than a fair return. For purposes of this
formula, a landlord's invested capital shall be the total of his initial
cash investment, or downpayment, and the total amount of amortization
of the mortgage(s) covering the property. Mortgages on properties
other than but in addition to the premises for which the application
is brought shall be allowable on a proportionate basis to be fixed
by the Hearing Officer. The invested capital shall be reduced by any
amounts realized from recasting or refinancing mortgages in excess
of the mortgage being paid off.
(a)
For the purposes of this section, a fair return on invested
capital shall be that percentage of invested capital equal to 10%
above the maximum passbook demand deposit savings account interest
rate available in the municipality.
(b)
In order to establish the calculation to determine the fair
return increase, it shall be based upon deducting the landlord's annual
residential operating expenses, including mortgage interest and amortization,
but excluding depreciation, and further including reasonable, necessary
and valid annual expenses for supplies, administrative costs, management
fees, heating fuel, electricity, water supplied, waste disposal, building
services, security, law and exterior maintenance, repairs, painting
and decorating, real estate taxes and other taxes, fees and permits,
insurance, payroll and wages, from the landlord's gross annual residential
income, derived directly or indirectly from the operation of the landlord's
property, including, but not limited to, all residential rents received,
all earnings from commissions, vending machines, laundry equipment
and supplies, deductions from security deposits, late fees, parking
fees, garage and pool fees, key charges, finder's fees and amounts
received from successful real estate tax appeals, income from rebates
and landlord's share of interest earned on tenants' security deposits
and hardship surcharges.
(c)
The deduction from the expenses as set forth above shall then
be divided by the invested capital to arrive at the landlord's return.
Any adjustment under this application shall be in such amount as is
necessary to bring the return of the invested capital to the level
of the fair return as defined above.
(d)
In order to determine the actual dollar amount of the hardship
rental increase per dwelling unit, the total dollar amount of the
hardship increase granted is to be divided by the total number of
rooms of the landlord's residential rented units. That figure is then
multiplied by the total number of rooms in each individual dwelling
unit to arrive at the increase per dwelling unit.
(3)
Standards for review and documentation to be presented. Any expense
for which a landlord seeks credit shall be substantiated with bills
and other documentation sufficient to prove the authenticity and the
correctness of the billing, invoice or voucher. Such proof may be
established by canceled checks and paid bills. The landlord or its
agent is required to provide the Office of Rent Leveling with the
last two years' federal income tax return or corporate tax return.
The time period may be waived by the Office of Rent Leveling in the
event that the applicant (landlord) acquired the building less than
24 months prior to the application. In no event may the applicant
provide documentation referred to above for a period less than 12
months, except that, in its discretion, the Office of Rent Leveling
may allow a certified income/expense or profit/loss statement prepared
by a certified public accountant of the State of New Jersey if the
federal income tax return(s) and/or corporate tax return(s) of the
predecessor in title cannot be obtained. At the time of the hearing,
the applicant shall have the right to produce evidence to show reasons
for bills that are owed. That evidence may be accepted and used to
evaluate the application and received as an amendment to those facts
as stated in the application.
(4)
Determination by the Hearing Officer. The Hearing Officer may make
any of the following determinations pursuant to an application for
a hardship rent increase: approve the amount of increase as requested,
deny the application for the requested increase, or modify the request
by approving an increase more or less than requested. Any increase
granted shall be prospective, and the effective date shall be determined
according to New Jersey Statutes governing timely notice for rent
increases, but in no event shall the increase be charged or collected,
with respect to a tenant during a term of a lease or a periodic tenant,
less than one full calendar month subsequent to his receipt of notification
of the increase. Once a decision has been rendered and the landlord
notified, it shall have the responsibility and obligation, or that
of its agent, to serve proper notice upon all those tenants affected
by the decision.
(5)
The Hearing Officer shall make a determination within 60 days of the filing of a completed hardship application. Any application that does not set forth information and documentation which is required in § 166-14 and any other information set forth in the application form as prescribed by the Office of Rent Leveling shall be returned to applicant, and the sixty-day period shall not commence until after the application has been corrected and resubmitted to the Office of Rent Leveling. For good cause shown, either the Office of Rent Leveling or the Hearing Officer may extend the time period for a hearing on the merits of the application, with or without the consent of the parties to the hearing, but said time period shall not extend beyond 15 days, exclusive of Saturdays, Sundays and legal holidays.
(6)
An application for a hardship rental increase must be filed not later
than one year following the year in which the hardship allegedly exists.
[Amended 12-3-2019 by Ord. No. 53-2019]
Upon the voluntary, uncoerced vacation of any apartment or housing
unit for which rent increases are controlled by this chapter, the
landlord shall have the right to fix the rent for such vacated apartment
or housing unit as appropriate in accordance with the Housing and
Urban Development Fair Market Rental (HUD FMR) guidelines in effect
for the year in which the increase is to occur. The proposed increase
is further subject to the following provisions:
A.
In order for the landlord to qualify for the vacancy decontrol rent
increase, the landlord shall first be required to file, within 30
days, a written statement with the Office of Rent Leveling, signed
by the vacating tenant, certifying to that Office that the landlord
has not in any way harassed, intimidated or pressured the tenant into
vacating the housing unit and that the vacation of such unit was a
voluntary act on the part of the tenant. For the purpose of this chapter,
a vacation caused or necessitated by substandard, unsafe or unsanitary
conditions of the rental premises shall be deemed a voluntary vacation
only if the referenced conditions were caused by the tenant. In the
event substandard, unsafe or unsanitary conditions are caused by the
landlord, the conditions shall be abated by the landlord, and the
tenant shall be given the opportunity to return to the unit at the
rental price charged to the tenant when the condition(s) were discovered.
At that time, should the tenant not wish to return to the unit, the
landlord may then apply for vacancy decontrol, subject to the additional
provisions of this chapter.
B.
Such noncoercion certification shall not be required in order for
the landlord to qualify for a vacancy decontrol increase if:
(1)
The tenant has moved from the unit without notice to the landlord;
(2)
The unit has been vacated pursuant to a judicially mandated eviction,
unless the court-ordered eviction shall have been the result of a
dispute brought about by changes in the terms of the lease; or
(3)
The tenant has refused to sign such certification and, upon appeal
by the landlord or its agent, the Rent Leveling Board has found that
such refusal was unwarranted and that there was in fact no coercion
of any kind exerted by the landlord, its agent or representatives
upon the vacating tenant.
C.
Upon vacation of any apartment or housing unit hereafter, the landlord
shall file a statement with the Office of Rent Leveling, certifying
to that Office:
(1)
The apartment and building number of such vacated dwelling unit;
(2)
The rent paid by the vacating tenant;
(3)
The maximum rent increase mandated by the HUD Fair Market Rental
and the rent the landlord proposes to charge if less than the HUD
Fair Market Rental rate;
(4)
A copy of the lease showing the rent agreed to by the new tenant
for the apartment; and
(5)
The original letter, signed by the vacating tenant, stating that
the vacation of such apartment was the voluntary act of the vacating
tenant and that such vacation was not the result of harassment or
pressure upon such vacating tenant by the landlord or its agents.
D.
A copy of the letter sent by the landlord, its agents or representatives
shall notify a tenant, either in a lease or written notice at the
inception of a lease or notice by mailed or personal service within
30 days from the passage of this chapter, of the tenant's rights under
the decontrol provisions herein. The aforesaid notice shall reasonably
advise the tenant that if he or she alleges harassment or pressure
resulted in his or her vacation of an apartment or housing unit, he
or she should notify the Office of Rent Leveling, and a hearing will
be held on the allegation. A hearing pursuant to this section shall
be held before the Rent Leveling Board upon at least 10 days' written
notice to the tenant and landlord.
E.
The provisions of this section shall only apply to an apartment or
housing unit if the new tenant is a tenant other than one presently
residing in the same apartment or housing unit. The "new" tenant may
not be a family member allowing the previous tenant to reside in the
unit.
F.
Upon vacation of any apartment hereafter, the landlord shall file
a statement with the Office of Rent Leveling certifying to that Office:
(1)
The apartment and building numbers of such dwelling units;
(2)
The rent paid by the vacating tenant;
(3)
The maximum rent increase that would be permissible were it not for
the vacancy decontrol provisions of this chapter;
(4)
The number of days such apartment remains vacant;
(5)
The rent agreed to by the tenant;
(6)
That the vacation of such dwelling unit was the voluntary act of
the vacating tenant and not the result of harassment, intimidation
or pressure by the landlord or its agents; and
(7)
That no existing tenant within the dwelling unit is determined to
remain in the vacated housing unit.
The landlord shall annex thereto a current certificate of habitability and certify that the decontrolled housing unit is in substantial compliance pursuant to the provisions of § 166-1 et seq. and the Property Maintenance Code of the City of Orange Township.
G.
In the event the Board determines that a landlord is seeking to decontrol
or has decontrolled an apartment or housing unit under circumstances
other than those set forth herein, the Board may:
H.
All of the documents listed in this section must be provided to the
Office of Rent Leveling before the unit can be rented at the higher
"decontrolled" rate. Failure to provide the information before the
unit is rented at the higher "decontrolled" rate is cause for the
Rent Leveling Office to reject the decontrol application in its entirety.
Within 60 days of adoption of this chapter, all owners of property
within the City of Orange Township whose rents are subject to and
controlled by this chapter shall file with the Office of Rent Leveling,
on the forms prescribed by the Office of Rent Leveling, a list of
all rental units, including those occupied by the agent or employee
of the landlord, which list shall contain a sworn affidavit or certification
as to the accuracy of the rents therein listed. The list of rents
shall set forth the dwelling unit number or other form of designation;
the number of rooms in each dwelling unit; whether rented or vacant;
the name of the tenants(s) occupying rented units; whether the tenancy
is by a written or oral agreement; and the anniversary or commencement
date (day and month) of the next annual increase. There shall be a
separate listing for any capital improvement or other surcharge previously
or hereinafter granted and the expiration date of same and the dwelling
units covered under such charges. Prior to but no later than March
1 of each year hereafter, the landlord or its agent shall file with
the Office of Rent Leveling a complete and accurate list of the rents
charged as of the date of said filing, which shall be completed on
the forms prescribed by the Office of Rent Leveling.
A.
Complaints based on the failure of a landlord to file a rent roll (§ 166-17, Recording and registering rents) may not be filed more than twelve (12) months after the effective date of any rental increase sought to be charged or collected by the landlord.
B.
All rental increases shall be paid by the tenant to the landlord
until such time as the complaint has been adjudicated. If it shall
be deemed that the landlord was not or is not entitled to the rental
increase, any moneys that have been overpaid shall be refunded to
the tenant or credit off of future months rent.
C.
Notwithstanding the time period set forth in Subsection A, the Rent Leveling Board may make a determination establishing the annual rental increase and fixing the base rent despite a disallowance of any refund or credit to the tenants who initiated the complaint. The Rent Leveling Board may, on its own motion, upon notice to all parties, establish and fix the correct base rent which shall be chargeable to the tenant and direct the landlord to recertify its rent roll and file the same with the Office of Rent Leveling.
Except as otherwise provided in this chapter, fees for the filing of an application for rent increase and recording and registering of rental units shall be as set forth in Chapter 88, Fees, and shall be nonrefundable and paid upon the filing of the application with the Office of Rent Leveling. The fees shall be added to any increase awarded and shall be equally shared by the tenants residing at the subject premises or whose units are affected therein. The fees assessed for the annual rent roll registration form shall be paid upon the filing of the rent roll registration form. One-half (1/2) of the yearly registration fee may be chargeable by the landlord to the tenant either in March of each year or upon the commencement of any new lease term for a year-to-year tenant or for a periodic tenant whose lease term is less than one (1) year. The landlord shall not collect nor charge a tenant unless the rent roll registration form and fee(s) for the particular year in which the tenant is to be charged have been filed with the Office of Rent Leveling.
A.
Except as otherwise provided in this chapter, any complaints or applications
filed by a tenant or landlord, whether directly heard by the Hearing
Officer or the Rent Leveling Board, shall be resolved and decision
rendered within sixty (60) days from the filing of a completed complaint
or application.
B.
On those occasions where a complaint or application takes the format
of mediation and an attempt by the Office of Rent Leveling or Hearing
Officer to resolve the dispute, the time period set forth above shall
not commence to run until such time as the Office of Rent Leveling
or Hearing Officer determines that no amicable resolution has or may
be achieved.
In computing rental increases and surcharges provided under
this chapter, all amounts so computed may be rounded off to the nearest
dollar in accordance with generally accepted accounting principals.
During the term of this chapter, the landlord shall maintain
the same standards of service, maintenance, furniture, furnishings
and equipment in the housing space and dwelling as was provided or
was required by law or lease agreement.
A.
In the case where municipal property taxes are decreased in a given
year due to either a decrease in the property tax rate or a lowering
of the assessed evaluation of the property by the municipality, the
tenants are entitled to a tax rebate equal to the amount of the reduction.
[Amended 8-3-1994 by Ord.
No. 28-94]
B.
The rebate amount is the difference between the current year's taxes
and the base year. The base year is any year, after 1990, in which
property taxes exceed the amount paid in 1990. This amount is to be
prorated, by unit, based on the percentage of the total annual rent
roll (of all units), divided into the decreased amount. That percentage
times each unit's monthly rent for the number of months that tenant
resided in that unit that year equals the amount of the rebate. Rebates
may be a one-time cash payment or used as a credit towards future
months' rent as determined by the landlord to be completed by December
31 or not later than July 1 of the following year for notices received
after November 1.
[Amended 8-3-1994 by Ord.
No. 28-94; 9-6-1994 by Ord. No. 30-94]
C.
Excluded from that percentage due the tenant shall be any interest
paid by the municipality to the landlord (taxpayer) pursuant to N.J.S.A.
54:3-27.2. The landlord shall not deduct from that percentage due
to the tenant any amount of taxes, interest or both which may be applied
against delinquencies pursuant to N.J.S.A. 54:4-134.
D.
In the case of any tenant who has moved, the landlord shall make
a diligent effort to forward the refund to such tenant; and if the
landlord is not successful in effecting such a refund, then and in
that event the landlord shall pay or apply such refund on a pro rata
basis to or for the benefit of those remaining tenant(s) who occupied
the dwelling and housing space during the time period for which the
taxes and/or assessment were the subject matter of the successful
appeal.
E.
Any landlord who does not, within thirty (30) days after receiving notice, notify the Office of Rent Leveling of the amounts calculated to be rebated to tenants as required above shall be put on notice by the Rent Regulation Officer that said landlord is in violation of Chapter 166, Rent Control, of the Code of the City of Orange Township and will be prohibited from asking, seeking or demanding any rent increase from said tenants and shall be denied eligibility for approval of vacancy decontrol, hardship, capital improvement or substantial rehabilitation applications until such time as they have complied with Subsections A and B above.
[Added 8-3-1994 by Ord.
No. 28-94]
F.
Any complaint of failure to comply with the terms of this section
shall be filed with the Office of Rent Leveling. For good cause shown,
the Rent Leveling Board may grant a rent credit in an amount sufficient
for the tenant to recover a rebate amount.
[Added 8-3-1994 by Ord.
No. 28-94; amended 9-6-1994 by Ord. No. 30-94]
A.
If a building is no longer under the tenure of the Federal Rental
Rehabilitation Program and there are remaining financial obligations
under the deferred loan program established by the Rental Rehabilitation
Program, then the costs of the deferred loan program, including interest
and principal, shall not be passed on to the tenants and shall not
be considered as an allowable expense for the landlord in a hardship
appeal or capital improvement application.
B.
During the term of this chapter and its predecessor, the landlord
shall maintain the same standards of service, maintenance, furniture,
furnishings and equipment in the housing space and dwelling as he
provided or was required to by law or lease at the date the lease
was entered into.
A.
A violation of any provision of this chapter, including but not limited
to the filing with the Office of Rent Leveling, the Hearing Officer
or the Rent Leveling Board of any material or relevant misstatement
of fact, may be punishable, upon conviction, by a fine of not more
than five hundred dollars ($500.) or imprisonment for not more than
ninety (90) days, or both. A violation affecting more than one (1)
tenant may be considered a separate violation as to each tenant.
B.
Whenever the Rent Leveling Board has reason to believe that any person
is liable to punishment under this chapter, the Rent Leveling Board
shall certify its respective findings to the Rent Leveling Board's
Attorney, who shall cause appropriate proceedings to be brought.
This chapter, being necessary for the welfare of the city and
its inhabitants, shall be liberally construed to effectuate the purposes
thereof.
If any provision of this chapter or the applications of such
provision to any person or circumstances is declared invalid, such
invalidity shall not affect other provisions or application of this
act which can be given effect, and, to this end, the provisions of
this act are declared to be severable.
This amendatory and supplementary act shall apply to any action
initiated on or after the effective date of this amendatory and supplementary
act and any action pending before the Rent Leveling Board on or after
that date.
A.
This chapter shall remain in effect until the City Council determines,
by ordinance, that rent control is no longer necessary in the City
of Orange Township and that it is in the public interest to permit
the unrestrained operation of the competitive rental market.
B.
All provisions of Chapter 156 (Property Maintenance Code) of the Code of the City of Orange Township, as amended and supplemented by this chapter, be and they are hereby readopted.
C.
All ordinances and parts of ordinances contrary hereto are hereby
repealed, but only to the extent of such conflict or inconsistency.
D.
This chapter shall take effect upon final passage and publication
as required by law but shall not be operational until the expiration
of thirty (30) days following final approval and publication according
to law.
[HISTORY: Adopted by the City Council of the City of Orange
Township 8-4-2021 by Ord. No. 40-2021. Amendments noted where applicable.]
[Added 8-4-2021 by Ord.
No. 40-2021]
It is hereby found by the Municipal Council of the City of Orange
Township that a significant number of landlords rent residential units
to unrelated persons who frequently engage in conduct which constitutes
breaches of the peace. Such conduct has a negative effect upon occupants
of other rental units and nearby structures, impacts the quality of
life of the neighborhood and tends to depress the value of surrounding
property. As landlords control both the selection of tenants and their
eviction for cause, only landlords can effectively remedy the condition.
[Added 8-4-2021 by Ord.
No. 40-2021]
It is the purpose of this article to create a single-point uniform system for the registration of single-family rental properties and multifamily rental properties by amending and supplementing the requirements of registration for rent control (Chapter 166, Section 17, of the Code of the City of Orange Township), N.J.S.A. 46:8-27 et seq., and licensing pursuant to this section. While registration and licensing of rental units is authorized pursuant to N.J.S.A. 40:48-2.12c and 40:52-1d, revocation of licenses and the penalties provided for herein are necessary due to the conditions set forth in the findings herein. Due to the absence of adequate remedies in state law, it is the purpose of this article to exercise the municipal police power implicit in the New Jersey Constitution and granted pursuant to N.J.S.A. 40:48-2 and, inter alia, to promote the welfare of the municipality and its inhabitants.
[Added 8-4-2021 by Ord.
No. 40-2021]
Collectively, the licenses issued to the owner of either
a single-family rental property or multi-family rental property pursuant
to this article. Each dwelling unit in a multi-family property shall
be separately licensed pursuant to the provisions of this article.
Any structure containing two or more units available for
rent, whether occupied or not, also referred to as a covered property.
The fee owner of any single-family rental property or multi-family
rental property whether individual, corporation, partnership, trust,
limited liability company, or other business entity. For the purpose
of this article, owner shall also include all corporate officers,
partners, trustees, trust beneficiaries, members of LLCs or others
with a control interest in an owner no matter the form.
The requirement to permanently affix information required
to be made known to tenants at rental properties regulated by this
article. Posting shall be at eye level near the primary entrance to
the property, at a place where it is most likely to be seen. The Department
of Planning and Development, Division of Code Enforcement shall provide
forms that shall be used for posting.
Conviction for disorderly, indecent, tumultuous or riotous
conduct, including, by way of example, but not limited to, simple
assault, assault, terroristic threats, harassment, urinating or defecating
in public, lewdness, criminal mischief, crimes against property or
excessive noise, by a tenant or a tenant's guest on or in the
vicinity of any single-family rental property or multi-family rental
property wherein such tenant resides. A violation shall be deemed
to have occurred in the vicinity of a covered property if such violation
occurred in the adjacent public right of way in front of the covered
property or on any property adjacent to the covered property.
Any single-family structure held out for rental, whether
occupied or not, also referred to as a covered property.
[Added 8-4-2021 by Ord.
No. 40-2021]
A.
Registration of multi-family rental properties pursuant to N.J.S.A.
40:52-1d, commencing September 1, 2021, and annually on September
1 of each succeeding year, owners of all multi-family rental properties
shall register same with the Department of Planning and Development,
Code Enforcement Division. Annually, at the time of registration,
a $100 registration fee shall be paid to the Department of Planning
and Development Code Enforcement Division. Such registration shall
be on forms provided by the Department of Planning and Development,
Code Enforcement Division, or by electronic means at such time as
a computerized system becomes available. Required information shall
generally include the following, information which will be required
in greater detail on forms issued by the Department of Planning and
Development, Code Enforcement Division:
(1)
Premises address, and tax block and lot number.
(2)
Owner contact information.
(3)
If owner is a corporation, officer contact information.
(4)
If owner is a limited liability company, member contact information.
(5)
If owner is a partnership, partner contact information.
(6)
Resident Management Agent contact information.
(7)
Rental Agent and other agent contact information.
(8)
Number of persons permitted to occupy each unit pursuant to the Code
of the City of Orange Township.
(9)
Unit descriptions, including room sizes, number of bathrooms and
the like.
(10)
Summary information regarding leases and tenants, including
lease terms, names of tenants and the like.
(11)
Name and address of all mortgagees of record.
(12)
Contact information for any on-site superintendent.
(13)
Emergency contact information.
(14)
If heated by fuel oil, contact information for oil supplier.
B.
Owners shall amend the filing required by this section within seven days of an occurrence affecting the required information and shall annually, on July 1 of each year, update the information required by this section. Compliance with this section shall also constitute compliance with the requirements of N.J.S.A. 46:8-27 and registration for the purposes of Chapter 166 of the Code of the City of Orange Township, titled "Rent Control".
[Added 8-4-2021 by Ord.
No. 40-2021]
A.
Registration of single-family rental properties pursuant to N.J.S.A.
40:52-1d, commencing September 1, 2021, and annually on September
1 of each succeeding year, owners of single-family rental properties
shall register same with the Department of Planning and Development,
Division of Code Enforcement. Annually, at the time of registration,
a $50 registration fee shall be paid to the Department of Planning
and Development, Division of Code Enforcement. Such registration shall
be on forms provided by the Department of Planning and Development,
Division of Code Enforcement, or by electronic means at such time
as a computerized system becomes available.
B.
Required information shall include:
(1)
Premises address, and tax block and lot number.
(2)
Owner contact information.
(3)
If owner is a corporation, officer contact information.
(4)
If owner is a limited liability company, member contact information.
(5)
If owner is a partnership, partner contact information.
(6)
Number of persons permitted to occupy each unit pursuant to the Code
of the City of Orange Township.
(7)
Unit descriptions, including room sizes, number of bedrooms and bathrooms.
(8)
Summary information regarding leases and tenants, including lease
terms, and names of tenants and permanent addresses.
(9)
Emergency contact information.
(10)
If heated by fuel oil, contact information for oil supplier.
C.
Owners shall amend the filing required by this section within seven days of an occurrence affecting the required information and shall annually, on July 1 of each year, update the information required by this section. Compliance with this section shall also constitute registration as may be required for the purposes of Chapter 166 of the Code of the City of Orange Township - Rent Control.
[Added 8-4-2021 by Ord.
No. 40-2021]
Upon filing of a completed registration form and the payment
of the registration fee, the Department of Planning and Development,
Division of Code Enforcement, shall issue a license or renewal to
the owner. In the case of a multi-family rental property, the Department
of Planning and Development, Division of Code Enforcement shall issue
a single license certificate whereon shall be listed all dwelling
units contained in that property. Each dwelling unit so listed shall
be deemed separately licensed.
[Added 8-4-2021 by Ord.
No. 40-2021]
Failure to register, to amend a registration when so required, to permit occupancy in violation of Chapter 156, Article V of the Code of the City of Orange Township, or to permit repeated violations pursuant to § 166-39, shall be a violation of this article. Each such violation shall constitute a separate offense, each punishable by a fine of not less than $500. Continued rental of a dwelling unit, after revocation or suspension of a license, shall constitute a separate offense punishable upon conviction in the Municipal Court by a fine not less than $500 for each day such unit was rented without a license.
[Added 8-4-2021 by Ord.
No. 40-2021]
No owner shall knowingly permit a tenant to remain in occupancy
of a dwelling unit who, or whose guests, commit repeated quality of
life violations.
[Added 8-4-2021 by Ord.
No. 40-2021]
On each occasion that a tenant in a multi-family rental property
or a single-family rental property, or such tenant's guest, commits
a quality of life violation, the Department of Planning and Development,
Division of Code Enforcement shall cause notice of such violation
to be sent to the owner via certified mail. Upon the occurrence and
notice of two quality of life violations by one or more tenants or
their guests, with respect to any dwelling unit within any twelve-month
period, the Department of Planning and Development, Division of Code
Enforcement may cause a complaint to be filed in the Municipal Court
and/or to conduct a public hearing, on notice to the owner, why the
license to operate a rental property should not be revoked or suspended.
In a multi-family rental property, license revocation may only be
imposed upon the dwelling unit associated with the subject quality
of life violation. Whether the Department of Planning and Development,
Division of Code Enforcement seeks to proceed in the Municipal Court
or to seek to revoke or suspend the license, proof that the owner
unsuccessfully attempted in good faith to evict the offending tenant(s),
after commission of two quality of life violations, shall constitute
an absolute defense.
[Added 8-4-2021 by Ord.
No. 40-2021]
A.
Pursuant to N.J.S.A. 40:48-2.12c, every owner of a multi-family rental
property who does not reside in the City of Orange Township shall
designate an agent with authority to act in the absence of the owner
with respect to such property, and which agent shall be a resident
of the City of Orange Township. Owners of two-family residences are
exempt from the requirement of this subsection.
B.
Owners shall post both a copy of the most current license and the
names, addresses, telephone numbers and e-mail addresses of all persons
available in the event of an emergency. Owners of multi-family rental
properties shall also include such information for resident agents.
