[Prior ordinance history includes portions of Ordinance Nos.
81-32, 94-63, 94-68, 98-17, 2002-3, 2002-14, 2003-20, 2009-3.]
[Ord. # 2012-17, § 14-1.1, 6-11-12]
a.
Title. This Article shall be known as the Rent Review Regulations
of the Township of Cherry Hill.
b.
Purpose. This Article is designed to protect the varied interests
of the landlords and tenants of all appropriate dwellings located
within the Township of Cherry Hill by establishing standards and procedures
for permanent vacancy decontrol, rent increases and rent decreases
for units covered by this chapter and fixing the responsibilities
of landlords and tenants and providing for administration, enforcement
and penalties in the Rent Review process.
[Ord. # 2012-17, § 14-1.2, 6-11-12]
a.
Adoption. This Article has been adopted by the Township of Cherry
Hill through Ordinance 2012-17. Any amendments, revisions or other
changes shall be made in accordance with all State and local laws.
b.
Severability. If any section, subsection, paragraph, sentence, clause
or phrase of this Article shall be declared invalid for any reason
whatsoever, such decision shall not affect the remaining portions
of this Article which shall continue in full force and effect, and
to this end the provisions of this Article are hereby declared to
be severable.
c.
Saving Clause. This Article shall not affect violations of any other
ordinance, code or regulation existing prior to the effective date
hereof, and any such violation shall be governed and shall continue
to be punishable to the full extent of the law under the provisions
of those ordinances, codes or regulations in effect at the time the
violation was committed.
d.
Conflicts. This Article is intended to work in conjunction with existing
Township Building Regulations. If this Article conflicts with any
existing Ordinances, the more stringent requirements of the two (2)
shall be in full force and effect.
e.
Termination of Prior Ordinances; Effective Date. All provisions of
Ordinance 75-84, entitled "An Ordinance to Regulate and Establish
Rents and Create a Rent Review Board Within the Township of Cherry
Hill, in the County of Camden," Ordinance 78-77 and Ordinance 81-32
entitled "An Ordinance to Regulate Rents Within the Township of Cherry
Hill, in the County of Camden," and Ordinance 94-68 entitled "An Ordinance
to Regulate Rents Within the Township of Cherry Hill, in the County
of Camden and Repealing Ordinance 81-31, entitled "An Ordinance to
Regulate Rents Within the Township of Cherry Hill, in the County of
Camden" Including Amendment Approved by the Following Ordinances of
81-31, Being Ordinances 81-69, 83-27, 83-29, 85-4, 85-30, 86-45, 88-10,
89-36 and 92-42" as such Ordinances have been amended, shall be superseded
by the provisions of this Article, except that rental increases and
surcharges authorized by the Board under Ordinances 75-84, 78-77 and
81-32 shall continue until their normal expiration date or until modified
by actions of the Board taken in accordance with this Article.
[Ord. # 2012-17, § 14-1.3, 6-11-12]
a.
General. The Rent Review Officer shall enforce all of the provisions
of this Article and, in certain circumstances, shall enforce the decisions
of the Rent Review Board. The Rent Review Officer may assist tenants
and landlords in the completion of petitions. The Rent Review Officer
shall consult with the Rent Review Board Chairperson, Township Property
Maintenance Official, Township Building Code Official, Zoning Officer,
Rent Review Board Attorney, Rent Review Board experts and/or other
individuals if needed to enforce the provisions of this Article. The
Rent Review Officer will conduct a preliminary review of petitions,
coordinate indicated inspections, and schedule and attend Rent Review
Board Meetings. The Rent Review Officer may file violations of the
provisions of this Article or violations of noncompliance with Rent
Review Board Resolutions before the Cherry Hill Township Municipal
Court or other court of competent jurisdiction.
b.
Notices and Orders. The Rent Review Officer shall issue all necessary
notices or orders to ensure compliance with this Article.
c.
Appointment. A Rent Review Officer shall be appointed by the Mayor.
d.
Conflicts of Interest. An official, inspector, deputy or employee
connected with the enforcement of this Article shall not be engaged
in, or directly or indirectly connected with, the furnishing of labor,
materials or appliances for the construction, alteration or maintenance
of a building, or the preparation of construction documents thereof,
unless that person is the owner of the building; nor shall such officer,
inspector, deputy or employee engage in any work that conflicts with
official duties or with the interests of the department; nor shall
such officer, inspector, deputy or employee use their position for
financial, professional or personal gain.
e.
Relief from Personal Responsibility. The Rent Review Officer or employee
charged with the enforcement of this Article, while acting for the
jurisdiction, shall not thereby be rendered liable personally, and
is hereby relieved from all personal liability for any damage accruing
to persons or property as a result of any act required or permitted
in the discharge of official duties. Any suit instituted against an
officer or employee because of an act performed by that officer or
employee in the lawful discharge of duties and under the provisions
of this Article shall be defended by the legal representative of the
jurisdiction until the final termination of the proceedings. The Rent
Review Officer or any subordinate shall not be liable for costs in
any action, suit or proceeding that is instituted in pursuance of
the provisions of this Article; and any Officer of the Department
of Building Inspection, acting in good faith and without malice, shall
be free from liability for acts performed under any of its provisions
or by reason of any act or omission in the performance of official
duties in connection therewith. The Official shall be afforded all
the rights and protections afforded under Title 59 of the New Jersey
Statute and other State law.
f.
Official Records. An official record shall be kept by the Rent Review
Officer of all business and activities of the department specified
in the provision of this Article, and all such records shall be open
to public inspection according to all appropriate times and according
to reasonable rules to maintain the integrity and security of such
records and State Statutes. The Rent Review Officer shall keep all
minutes of Board Meetings and Hearings.
g.
Preliminary Review. The Rent Review Officer shall be responsible
for the preliminary review of any petition filed with the Rent Review
Board. The Rent Review Officer shall review the petition for completeness.
1.
Consultation. As part of the preliminary review, the Rent Review
Officer shall contact the Township Tax Collector, Property Maintenance
Officer, Building Inspector, Zoning Official, and Township Attorney
and/or any other appropriate Township representative to determine
whether there exists any outstanding taxes, municipal fees, violations
or other events which may affect the scheduling of the hearing. The
Rent Review Officer will forward this information to the Rent Review
Board Attorney.
2.
Notice. Should the Rent Review Officer determine that the petition
is incomplete and/or that there are outstanding taxes, municipal fees,
violations or other events which may affect the scheduling of the
hearing, the Rent Review Officer shall notify the person(s) filing
the petition of the preliminary deficiencies. This notice shall be
by regular mail.
h.
Secondary Review. Upon the determination of the Rent Review Officer
that the petition is substantially complete, the petition shall be
forwarded to the Rent Review Board Attorney for review. The Rent Review
Officer shall note any deficiencies of the petition.
i.
Scheduling of Hearing. Upon notification from the Rent Review Board Chairperson or the Rent Review Board Attorney, the Rent Review Officer shall schedule a hearing of the petition. Notice of the hearing will be made pursuant to subsection 14-1.6c.
k.
Tenant/Landlord Assistance. The Rent Review Officer may aid any petitioner
in the completion of a petition. The Rent Review Officer may not act
as an attorney or as an accountant and shall advise the petitioner
of same. The Rent Review Officer may consult with other Township Officials
(e.g., Property Maintenance Officer, Zoning Officer, and Building
Inspector) in order to provide assistance to the petitioner.
[Ord. # 2012-17, § 14-1.4, 6-11-12]
a.
Jurisdiction and Authority. There is created within the Township
a Rent Review Board, the members of which shall be appointed by the
Mayor with the advice and consent of Township Council. The Board is
granted and shall exercise all the power necessary and appropriate
to execute the provisions of this Article. These powers include, but
are not limited to, the following:
1.
Supplying information and assistance to landlords and tenants which
will assist compliance with this Article.
2.
Holding hearings and adjudicating petitions authorized by this Article.
3.
Enforcing the provisions of this Article and initiating proceedings
in courts of competent jurisdiction in the event of violations of
this Article.
4.
Investigating all matters which are necessary to carry out the purposes
of this Article.
5.
Issuing subpoenas to compel the attendance of witnesses and the production
of books and records at hearings and investigations held pursuant
to the provisions of this Article.
6.
Requiring a landlord to make restitution of amounts overcharged to
a tenant.
7.
Requiring a landlord to make necessary repairs pursuant to the provisions
of this Article.
8.
In matters of controversy, the Board shall afford parties a reasonable
opportunity to be heard prior to a final determination; testimony
shall be under oath.
9.
Consultation with Township Officials and/or other individuals which
will assist in the compliance with this Article.
10.
Consultation with the Rent Review Board Attorney in order to enforce
this Article in any court of competent jurisdiction.
b.
Membership.
1.
Establishment of the Board; Appointment of Members and Alternates.
(a)
The Board shall consist of seven (7) regular members and three
(3) alternate members. All members shall serve without compensation.
Three (3) regular members and one (1) alternate member shall be homeowners
who are neither, directly or indirectly, a landlord nor a tenant.
Two (2) regular members and one (1) alternate member shall be tenants
residing in dwellings affected by this Article, who are not directly
or indirectly landlords. Two (2) regular members and one (1) alternate
member shall be landlords of dwellings, or their designees, affected
by this Article.
(b)
Members of the Board other than the landlord members shall be
residents of the Township of Cherry Hill who are not less than eighteen
(18) years of age. They shall hold office for a term of two (2) years
from the first day of July in the year of appointment. Members of
the Board may be reappointed.
(c)
In the event any regular member or alternate member is disqualified
or resigned or is otherwise unable to serve, the Mayor with the advice
and consent of Township Council shall appoint a replacement for the
remainder of that person's term.
(d)
A regular member or alternate member of the Board shall be subject
to removal by the Mayor with the advice and consent of Township Council
for cause. Without limiting the scope of the preceding sentence, failure
to attend three (3) consecutive regular meetings of the Board without
good reason and notification in advance to the Chairperson shall constitute
cause.
(e)
In the event the Mayor with the advice and consent of Township
Council is unable to secure the services of individuals in accordance
with the categories listed above, the Mayor with the advice and consent
of Township Council may make appointments to the Board without regard
to such categories.
2.
Chairperson.
(a)
The Mayor with the advice and consent of Township Council shall
appoint one of the members as the Rent Review Chairperson for a term
of one (1) year from July 1 of the year of appointment. The Chairperson
may be reappointed.
(b)
The Rent Review Chairperson shall officiate at meetings of the Rent Review Board and may vote as set forth in subsection 14-1.4c.
c.
Voting. Each regular member may participate in all meetings of the
Board and shall vote when present. Voting may not be conducted by
proxy. The presence of four (4) members shall constitute a "quorum."
During the presence of a quorum, decisions or actions by a majority
vote shall be valid.
1.
Alternate Members. Each alternate member may participate in all meetings
of the Board, but may vote only if a member of his or her category
(i.e., homeowner, tenant or landlord) is absent or disqualified.
2.
Conflicts. A regular member or alternate member permitted to vote
shall disqualify himself or herself from participation as a member
of the Board in any phase of any matter in which he or she has or
has had any direct or indirect affiliation or security, ownership,
management or leasehold interest.
d.
Meetings. The Board shall hold regular meetings at least once a month,
unless there is no business before the Board. The regular meeting
shall be held at a time to be set by the Officer in accordance with
the Open Public Meetings Act.
1.
Special Meetings. Special meetings may be called by the Chairperson
or a majority of members upon at least seventy-two (72) hours'
notice to all regular members and alternate members in writing.
2.
Open Meetings. All meetings and caucuses shall be open to the public
and subject to the provisions of P.L. 1975, Chapter 231, the "Sunshine
Law."
3.
The rules and regulations for the conduct of the meeting shall be
established by resolution of the Rent Review Board.
e.
Budget and Personnel.
1.
Budget. Cherry Hill Township shall provide such sums as are determined
to be necessary for the administration of this Article in its annual
budget.
Requests of the Board for appropriations shall be specific and
submitted to the Mayor on or before April 1 of each year for the subsequent
fiscal year.
f.
Relief from Personal Responsibility. The Rent Review Board or employee
charged with the enforcement of this Article, while acting for the
jurisdiction, shall not thereby be rendered liable personally, and
is hereby relieved from all personal liability for any damage accruing
to persons or property as a result of any act required or permitted
in the discharge of official duties. Any suit instituted against an
officer or employee because of an act performed by that officer or
employee in the lawful discharge of duties and under the provisions
of this Article shall be defended by the legal representative of the
jurisdiction until the final termination of the proceedings. The Rent
Review Board shall be afforded all the rights and protections afforded
under Title 59 of the New Jersey Statute and other State law.
[Ord. # 2012-17, § 14-1.6, 6-11-12]
a.
Preliminary Review of Petition. Any petition under this section shall undergo a preliminary review by the Rent Review Officer, pursuant to subsection 14-1.3g.
b.
Secondary Review of Petition. Following a petition for a rental increase under subsections 14-3.4c, 14-3.4d, or decrease under subsection 14-3.5 or 14-3.4d11, the Board shall obtain a review of the petition from the financial consultant. The financial consultant shall determine whether the petition is satisfactory as to form.
1.
Notice. Within twenty-one (21) days of the filing of a petition, the Rent Review Officer shall notify the moving party whether the petition is acceptable in form. If the petition is unacceptable, the Board or the Rent Review Officer shall return it to the landlord or tenant with specific instructions for the correction of deficiencies. The Rent Review Officer may indicate that the petition is "provisionally acceptable" excepting the repairs which may be required pursuant to subsection 14-3.4b7 et seq.
2.
Jurisdictional/Judicial Issues. Should the petition be complete,
but be subject to jurisdictional or judicial issues, the Board, at
its discretion, may schedule a hearing for the sole purpose of creating
a record. The Rent Review Officer, upon notification from the Board,
shall notify the petitioner and any interested party that the sole
purpose of the hearing will be to make a record for judicial purposes
and that no testimony shall be taken at such a hearing.
c.
Hearings Schedule. All reasonable efforts shall be made to schedule
a hearing date no sooner than forty-five (45) days from the date of
the receipt of a petition in an acceptable form and no later than
ninety (90) days from the date of receipt.
1.
Adjournment/Postponement. All hearing dates of a landlord's petition shall be scheduled to the extent reasonable to permit the final determination of an application on or before the anniversary date of the last approved increase or determination. Applications by the parties to a petition for adjournments or postponements shall be addressed, in writing, to the Board and will not be granted except for good cause shown including, without limitation, a postponement to permit a landlord to make repairs pursuant to subsection 14-3.4b9. The Board Chairperson has the authority to grant such a postponement/ adjournment.
d.
Hearings Notice Publication. The Board shall publish hearing dates
along with a statement of the purpose of the hearing in a local paper,
and post it on the Township's bulletin board designed for such
purpose.
e.
Hearings - Consolidation. The Board may consolidate hearings in whole
or in part on related or unrelated matters consistent with the efficient
administration of justice.
f.
Hearings - Service. Within two (2) business days following the filing of a petition, the petitioning party shall serve the parties identified below with a copy of the petition, and shall, no later than ten (10) days thereafter, file a proof of service with the Rent Review Officer. In the case of a petition for a rental increase, (a) the notice shall indicate that the supporting materials are available for review in the landlord's office in the Township and (b) such proof of service shall also include proof of service of the checklist required to be delivered pursuant to subsection 14-3.4b7. Amended and supplemented petitions shall be served and proof of such service shall be made and filed in accordance with the provisions of this paragraph. Service may be performed by registered mail, return receipt requested, or by personal service.
1.
Landlord petitioner. If the petitioning party is the landlord, the
following parties shall be served with a copy of the petition and
notice of the hearing date.
(a)
Each unit, dwelling, mobile home or apartment shall be served
with a copy of the petition and notice of hearing date; and (b) the
president of each tenants' association of the landlord's
dwelling.
2.
Tenant petitioner. If the petitioning party is the tenant, the landlord
shall be served with the petition and notice of hearing date.
[Ord. # 2012-17, § 14-1.7, 6-11-12]
a.
General. The Board shall hold hearings and make determinations upon
any petition or application properly brought before the Board under
the provisions of this Article.
b.
Representation. The parties, if individuals, may appear or may be
represented by any lawful representative of their choosing. Corporations
shall be represented by a New Jersey admitted attorney, or by an officer
or authorized agent of the corporation. If a tenant affected by the
petition chooses to have the tenants' organization that represents
such tenant appear, the tenants' organization may be represented
in the same manner as a corporation. The tenant may also represent
him/herself. If a tenant is unable or unwilling to represent him/herself
and does not wish the tenant's organization of his/her dwelling
to do so, then the tenant may submit a written statement to the Board,
signed by the tenant.
c.
Witnesses and Documents. The Board or, subject to approval of the
Board, the parties may call such witnesses as they deem appropriate.
All testimony shall be given under oath. The Board shall have the
authority to require the parties to supply witness lists and/or summaries
of the testimony to be presented.
d.
Burden of Proof. The petitioning party shall have the burden of proof,
and shall have the burden of proof by a preponderance of the evidence.
e.
Supplemental Material. Any supplements, corrections or amendments
which materially alter a petition, and copies of such documents, shall
be filed and served in accordance with the requirements of this Article,
no later than twenty (20) days prior to the first scheduled hearing.
If any such supplement, correction or amendment is not filed within
said twenty (20) day period, the Board shall treat the petition as
though filed on the date the supplement, correction or amendment is
received by the Board, assuming proper service in accordance with
the requirements of this Article. Petitions may be withdrawn without
prejudice.
f.
Hearing Minutes. Minutes of all meetings shall be kept and filed
monthly with the Township Clerk.
g.
Record. Verbatim recordings shall be taken of all meetings of the
Board, and shall be supplied on request and in accordance with a fee
schedule specified by Township Ordinance.
h.
Decisions. Each decision of the Board shall be in the form of a written
resolution, clearly indicating the amounts of rent increase or decrease
granted, the manner in which the increase or decrease shall be apportioned
among rental units (if not solely on a proportional square foot basis),
the effective date, and the reasons for the Board's decision.
1.
Notification. Notification shall be in the form of a photocopy of
the Board's decision.
(a)
Notification of a decision of the Board shall be made within
ten (10) days of the date of the decision.
(b)
Notification shall be sent by the Board by certified mail, return
receipt requested or by personal delivery to the following:
(c)
Notification shall be posted in the Board's location in the Township as designated pursuant to subsection 14-1.8.
(d)
Notification shall be published in each of the Township's
official newspapers.
(e)
If the petitioning party is the landlord, the landlord shall,
within seven (7) days of receipt of notice from the Board:
i.
Appeals. Appeals from the Board's decision shall be to any court
of competent jurisdiction.
j.
Settlement. In the event all parties agree on a settlement of any
petition properly brought before the Board under the provisions of
this Article, the Board shall nevertheless hold a hearing, make independent
findings of fact and determinations, and issue a decision in the form
of a written resolution, clearly indicating the amount of rent increase
or decrease granted, the manner in which the increase or decrease
shall be apportioned among rental units covered by this Article (if
not solely on a proportionate square foot basis), the effective date,
and the reasons for the Board's decision. The Board, in its sole
discretion, may accept or reject, in whole or in part, any settlement
agreed to by the parties.
k.
Reopening or Rehearing. The Board, sua sponte (upon its own motion),
shall have the power to reopen any proceeding brought before the Board
and to rehear any petition, in whole or in part.
[Ord. # 2012-17, § 14-1.8, 6-11-12]
a.
Board. The Board shall establish in its offices in the Township a
specific location for the posting of all notices and decisions which
are produced and rendered by the Board. If this location is not the
most recently designated location so designated in accordance with
Ordinance Nos. 75-84, 78-77 or 81-32, as such ordinances may have
been amended, the existence of this designated location shall be published
in a local newspaper for four (4) consecutive weeks after the effective
date of this Article. Notification of a change in the designated place
shall also be published in accordance with the requirements of the
preceding sentence.
b.
Landlord. Within thirty (30) days following the adoption of this
Article, the landlord shall notify each tenant in the landlord's
dwelling (by the same method for service as required of landlords
for service of petitions under this Article) of the existence and
location of a bulletin board in each separate building of the landlord's
dwelling where all official notices will be posted. Notwithstanding
the foregoing, a landlord need not make such notification if the tenants
of the dwelling received notification of the location of such bulletin
board pursuant to the then applicable provisions of Ordinance 75-84,
78-77 or 81-32, as such ordinances may have been amended, and such
notification was not amended or revoked. The bulletin board required
by this paragraph shall be in a convenient and visible place.
1.
Materials to be Posted. All notices required of the landlord by this
Article and all decisions of the Board shall be posted on the bulletin
board along with any other materials required to be posted by this
Article.
(a)
Exception: If the landlord does not have a convenient and visible
place for a bulletin board and is a landlord of a single dwelling
garden apartment or mobile home park, then the landlord shall make
all notifications, individually, by certified mail. The landlords
of single dwellings, garden apartments and mobile home parks have
the option of placing bulletin boards in common areas accessible to
all tenants and to notify all tenants of this bulletin board's
location.
c.
Tenants' Organizations. Any tenants' organization association
in Cherry Hill shall have the right to notify the Board of its existence
and request the Board to send to the organization all required notices
and all decisions of the Cherry Hill Rent Review Board.
1.
Qualifications. To qualify to be a tenants' organization recognized
by the Rent Review Board, the organization must submit to the Board:
(a)
Proof of way of signed petition that the organization represents
at least twenty (20%) percent of the current tenants.
(b)
A list of officers of the tenants' association.
(c)
The duly adopted by laws of the association.
(d)
Proof of a bank account in the association's name.
(e)
Name of the duly authorized representative and alternate entitled
to receive notifications and correspondence.
2.
Disputes. Any disputes as to whether a tenant belongs to one association
or another shall be resolved by the Rent Review Board. All other disputes
between multiple organizations shall be resolved according to law.
a.
General. Except when provided in this Article to the contrary, all
service required by this Article shall be by one of the following
methods:
1.
Certified Mail. Certified mail with return receipt requested. If
this method is used and the receipt is not returned or returned unserved
within fourteen (14) days, service may be made by certified mail (without
return receipt), and the party effecting such service shall obtain
a certificate of mailing from the post office and deliver such certificate
to the Board at any time prior to the hearing to which the served
document relates affirming that both methods of service were used
in accordance with the requirements of this subsection. Based on the
affidavit and any other pertinent evidence that it may receive, the
Board shall determine whether or not service was valid. If service
is to be proven by the return receipt, then the receipt or receipts
must be produced for the Board's review at the hearing to which
such document relates.
2.
Personal Service. Personal service may be effected by leaving notices
in or at tenant's premises in places which are reasonably conspicuous,
in which case physical delivery of a notice to the tenant is not required.
If this method is used, the party effecting such service shall present
an affidavit to the Board, at any time prior to the hearing to which
the served document relates, affirming that personal service was effected.
Based on the affidavit and any other pertinent evidence that it receives,
the Board shall determine whether or not service was valid. Personal
service can be made by any duly authorized agent, servant, or employee
of the party on whose behalf service is effected.
b.
Service Requirements. A decision of the Board shall not be binding
on any party not actually served, unless all reasonable attempts at
actual service have been made, and the attempted service meets with
all requirements of due process for attempted service.
[Ord. # 2012-17, § 14-1.10, 6-11-12]
a.
General. The following fee schedule for petitions and applications
to the Rent Review Board are established. The fees shall be payable
to the Community Development Office of the Township.
1.
Tenant Petition. Each tenant petition shall be accompanied by a ten
($10.00) dollar filing fee which is nonrefundable.
2.
Landlord Petition. Each landlord petition for rent increase shall be accompanied by a nonrefundable one hundred ($100.00) dollar filing fee. Each landlord petition for rent increase pursuant to subsection 14-3.4d (Hardship) shall be accompanied by a filing fee of one thousand five hundred ($1,500.00) dollars for a complex of less than one hundred (100) rental units, and three thousand five hundred ($3,500.00) dollars for a complex of one hundred (100) units or more. This filing fee under subsection 14-3.4d (Hardship), shall be held in escrow to pay for costs of the Rent Review Board petition review. Should the cost of review and hearing be less than the filing fee, the remaining fee shall be returned or held in the landlord's escrow account. Should the review and hearing(s) cost more than the fee, the Rent Review Officer shall contact the landlord for further funds, which must be deposited before the hearing(s) or review continues.
3.
Transcript. Any person or party requesting a transcript shall pay
all actual costs for the preparation and copying of the number of
copies requested.
b.
The Rent Review Board shall have the sole authority to determine
the designation of ''CPI" vs. "Hardship" applications. Should
the Rent Review Board determine that a CPI application is complicated,
and in need of fiscal review, the Board may designate the application
as a "hardship" application with all attendant fees and regulations.
[Ord. # 2012-17, § 14-1.11, 6-11-12]
a.
General. Neither a landlord nor a tenant shall take retaliatory action
against another for the exercise of any rights conferred upon them
by this Article.
b.
Definition. For the purpose of this subsection, retaliatory action
shall mean any action taken by the landlord or tenant directly or
indirectly that may be deemed to have a punitive impact upon the other,
including undue or unusual inconvenience, violation of privacy, harassment,
reduction in quality or quantity of services, the institution of dispossession
proceedings or any other form of threat or coercion.
[Ord. # 2012-17, § 14-1.12, 6-11-12]
a.
General. Upon application of a party, with proof in the form of affidavit,
and upon terms which are just, the Board may relieve a party to a
proceeding before the Board from a final Board determination for the
following reasons.
1.
Newly Discovered Evidence. Newly discovered evidence which would
more likely than not alter the Board determination and which by due
diligence could not have been discovered prior to the last hearing
at or after which the Board determination was made.
2.
Fraud, Misconduct. Fraud, misrepresentation or misconduct of an adverse
party.
b.
Time for Application. An application pursuant to this subsection 14-1.12 shall be made within a reasonable time and not more than sixty (60) days after the date of the Board determination.
c.
Suspension of Operation. Absent good cause shown, an application
under this subsection shall not suspend the operation of a Board determination.
Upon good cause shown, the Board may, in its discretion, suspend the
operation of a Board determination.
[Ord. # 2012-17, § 14-1.13, 6-11-12]
a.
General. Any provision of a lease or other agreement purporting to
waive or otherwise alter any provisions of this Article shall be deemed
against public policy and shall be void. An agreement by a landlord
and tenant to fix rent increases at amounts less than those allowed
by the provisions of this Article shall not be deemed an agreement
purporting to waive or otherwise invalidate any provisions of this
Article.
[Ord. # 2012-17, § 14-1.14, 6-11-12]
a.
General. Any violation of the provisions of this Article, including
but not limited to the filing with the Board of any material misstatement
of fact, shall be punishable by a fine of not more than five hundred
($500.00) dollars or imprisonment for not more than thirty (30) days,
or both.
This provision does not authorize the Rent Review Board or Governing
Body to enforce private agreements as formed between landlords and
either tenants or tenants ' associations.
b.
Separate Violations. Each single occurrence shall be considered a
separate violation.
1.
Multiple Rental Units. A violation affecting more than one (1) rental
unit shall be considered a separate violation as to each rental unit.
c.
Retaliatory Actions. Willful retaliatory action by a landlord against
a tenant or by a tenant against a landlord of any nature whatsoever
in response to exercise by the other of any rights conferred by this
Article shall be punishable by a fine not to exceed five hundred ($500.00)
dollars or imprisonment not to exceed ninety (90) days, or both.
d.
Enforcement. Either the Rent Review Officer or the Rent Review Board
may enforce the provisions of this Article. Either may consult with
and/or engage the Rent Review Board Attorney and/or the Township Attorney
to seek judicial remedies.
[Ord. # 2012-17, § 14-2.1, 6-11-12]
a.
Scope. Unless otherwise expressly stated, the following terms shall,
for the purposes of this Article, have the meanings shown in this
chapter.
b.
Parts. Whenever the words "dwelling unit," "dwelling," "premises,"
"building," "rooming house," "rooming unit," "story," or "structure"
are stated in this Article, they shall be construed as though they
were followed by the words "or any part thereof."
[Ord. # 2012-17, § 14-2.2, 6-11-12]
Shall mean the Rent Review Board of the Township of Cherry
Hill.
Shall mean a date upon which banking institutions in the
State of New Jersey and New Jersey State Government offices are open.
Shall mean property improvements having a useful life of
at least five (5) years.
Shall mean the housing component of the Consumer Price Index
relating to the urban consumers in the selected local area of Philadelphia,
PA - New Jersey.
Shall mean the quotient derived by subtracting the average
of the CPI for all twelve (12) months in the Prior Reference Period
from the average of the CPI for all twelve (12) months in the Reference
Period and dividing the remainder by the CPI for all twelve (12) months
in the Prior Reference Period.
Shall mean any building, structure, mobile home's site
or land, which in whole or in part is rented or offered for rent or
lease by one (1) or more landlords who individually hold seven (7)
or more concurrent leases or agreements for living purposes. Dwellings
shall not include premises serving transient guests and public housing
which is exempt from local municipal rent control under State or Federal
law.
Shall mean Gross Potential Residential Rent Income less actual
Vacancy and Collection Loss.
Shall mean the potential total annual income as approved
by the Rent Review Board (even if not actually charged by the landlord)
during the period under analysis that is attributable to the residential
operations of a rental complex at one hundred (100%) percent occupancy.
It represents the sum of "Scheduled (Allowed) Rental Income" and "Other
Income" before deduction for Vacancy and Collection Loss and Operating
Expenses.
Shall mean any individual appointed by the Cherry Hill Department
of Community Development to carry out responsibilities as set forth
in this Article.
Shall mean an owner, sub-lessor, assignee, or other person
or entity receiving or entitled to receive rent or any agent of a
person or entity receiving or entitled to receive rent, including
a court appointed or statutory receiver or trustee.
Shall mean the fees incurred for management of a dwelling,
which shall be limited to actual services performed, including the
resident manager's salary, telephone expenses, postage, office
supplies, stationery, and the value of the apartment provided to the
resident manager, if any. Management fees will be limited to the actual
fair value of services performed.
Shall mean the annual cost for the use of debt funds, including
periodic interest payments and debt placement fees (points), plus
the scheduled mortgage loan amortization payments (principal retirement).
For the purposes of this definition, debt placement fees may be included
by an equal annual amortization over the term of the existing mortgage.
Shall mean the income remaining after operating expenses
are deducted from Gross Effective Residential Rent Income, but before
deduction for Mortgage Debt Service Costs.
Shall mean the reasonable and recurring annual operating expenses that are necessary for the efficient operation of the residence, including, but not limited to, customary and normal expenses for repairs and maintenance, utilities, insurance, taxes, payroll costs, management fees, administrative costs, appraisal fees, professional fees, (but such professional fees shall not include filing fees, accounting and auditing fees, financial expert fees, and any other costs or expenses whatsoever associated with the preparing or filing of a petition under this Article, or any hearing before the Board relating to such a petition, or any appeal taken from a decision of the Board) and reserves for capital replacement. Mortgage Debt Service Costs, property improvements and equipment depreciation or amortization are excluded from Operating Expenses. In connection with petitions filed pursuant to subsection 14-3.4d (Hardship), components of operating expenses are subject to adjustment as set forth therein.
Shall mean all income attributable to the dwelling that is
not derived directly from space rental or any other consideration
included in Scheduled (Allowed) Rent Income. It shall include, but
not be limited to, all usage fees, income from machines provided to
tenants (e.g., vending and laundry) deductions from security deposits,
late fees, pet fees, parking fees, earnings from commissions and income
from all ancillary sources related to the dwelling.
Shall mean expenditures made (cash paid or obligations incurred)
for completed major additional facilities or services not previously
provided in the affected dwelling. Property Improvements constitute
a betterment to the property or new services and do not include replacements
of previously existing facilities or services.
Shall mean the twelve (12) month period ending with the latest
month for which the CPI has been published by the United States Department
of Labor, Bureau of Labor Statistics for the Philadelphia - South
Jersey Region.
Shall mean the twelve (12) month period ending with the last
month prior to the first month in the Reference Period.
Shall mean that each apartment, mobile home pad site or other
living unit in a dwelling rented to a tenant or offered for rent or
lease to prospective tenants, together with all privileges, services,
furnishings, furniture, equipment, facilities, and improvements connected
with the use or occupancy of that portion of the dwelling.
Shall mean the periodic space rents stipulated in the leases
in effect for the period under review, fees (e.g., pet fees), and
any other consideration incurred in exchange for the right to occupy
and enjoy housing space. Rents in excess of the amount permitted under
this Article shall not be included in the "Scheduled (Allowed) Rent
Income."
Shall mean the Township of Cherry Hill, New Jersey.
Shall mean reasonable reductions in "Gross Potential Residential
Rental Income" attributable to vacancies, tenant turnover, and nonpayment
of rent.
[Ord. # 2012-17, § 14-3.1, 6-11-12]
Any rent adjustment (increase or decrease) for a unit covered
by this chapter shall be applied for, by petition, to the Rent Review
Board by procedures as outlined in this Article.
a.
Existing Adjustment. No landlord shall charge any rents in excess of those imposed on September 1, 1994 except as previously have been authorized by the Rent Review Board pursuant to Ordinance 75-84 or Ordinance 78-77, as amended, or as may be authorized by the Board pursuant to this Article. Any rental increase to a tenant other than as permitted pursuant to the preceding sentence shall be void and constitute a violation of this Article. The foregoing does not apply to units that have been permanently decontrolled pursuant to subsection 14-3.3.
b.
Standards to be Maintained. During a lease term, the landlord shall
maintain the same housing standards in its dwelling which it was required
to furnish by law, ordinance or lease, at the commencement of the
lease. Such standards include, but are not limited to, amenities,
utilities, charges, maintenance, furnishings, equipment, bus service,
off street parking, security, refuse disposal and recreational facilities.
The housing standards shall not be reduced at the termination of leases
and prior to the commencement of succeeding leases.
1.
Failure to Maintain Standards. An individual tenant or class of tenants
whose rental unit does not, or whose rental units do not, benefit
from substantially the same housing standards as are required by law,
or the terms of such tenant's lease may file a petition with
the Board under the procedures set forth in this Article for a rent
reduction. The Board may limit the rent to be charged for a rental
unit affected by such reduced standards to such extent as it deems
appropriate. Such rent may not be exceeded until the landlord demonstrates
by petition that the deficiency has been corrected.
c.
Private Agreements. This Article encourages private agreements to
be reached between tenants' associations and landlords. Any agreements
in effect at the time of the adoption of this Article, which have
been approved by the Rent Review Board, shall remain in effect. This
provision does not authorize the Rent Review Board or the Governing
Body to enforce private agreements as formed between landlords and
either tenants or tenants' associations.
[Ord. # 2012-17, § 14-3.2, 6-11-12]
Any unit that is vacant as of the effective date of Ordinance
2012-17 (adopted June 11, 2012) or any new unit which comes into being
subsequent to the enactment of Ordinance 2012-17 shall not be subject
to rent control; and
a.
Upon rerental of a unit which was vacated consistent with the provisions of subsection 14-3.3, the vacated unit shall no longer be subject to the provisions of this Article and shall be considered a decontrolled unit; and
b.
The first rental arising from new construction of a new rental unit
is not subject to rent control.
Notwithstanding anything to the contrary, upon voluntary, uncoerced
vacation of any rental unit for which rent increases are controlled
by this Article, the landlord shall have the right to fix the rent
for such vacated rental unit at such a sum as the landlord deems appropriate,
without further application of this Article.
a.
Qualifications of Vacancy Decontrol. In order for the landlord to qualify for permanent vacancy decontrol pursuant to this subsection 14-3.3, the landlord shall file a written statement with the Rent Review Officer, signed by the vacating tenant, certifying that the landlord has not, in any way, harassed or pressured the tenant into vacating the rental unit and that the vacation of such rental unit was a voluntary act on the part of the tenant.
1.
Exceptions. A certification regarding harassment or pressure shall
not be required for permanent vacancy decontrol, if:
(a)
The tenant has moved from the rental unit without notice to
the landlord; or
(b)
The rental unit has been vacated pursuant to a judicially mandated
eviction or State Statute; or
(c)
The tenant has refused to sign such certification and the landlord
has certified to the Board that he has provided the tenant with:
(1)
Notice in the lease or notice at the inception of the lease
or notice by personal service or certified mail, return receipt requested
with proof of mailing provided to the Rent Review Officer within thirty
(30) days of the passage of this Article of the tenant's rights
under this section; or
(2)
Notice to the tenant of the tenant's rights under this
section within two (2) business days after the tenant notifies the
landlord that he is vacating the dwelling or sixty (60) days prior
to the termination of the lease, whichever is earlier. The aforesaid
notice shall prominently advise the tenant that if the tenant alleges
harassment or pressure, the tenant should notify the Board and a hearing
will be held on the allegation.
2.
Harassment. If the tenant notifies the Rent Review Officer of harassment, such notification shall be effected by the filing of a written statement alleging such harassment or pressure. A hearing regarding a tenant's allegation of harassment or pressure shall be held before the Board upon at least seven (7) days' notice to the landlord and the tenant. In any such proceeding, the reduction of standards of service, maintenance, health and safety conditions, furniture, furnishings or equipment in and for such rental unit shall create a rebuttable presumption that the acts done were done by the landlord with intent to cause the tenant to vacate. A finding by the Board that such pressure or harassment did in fact exist may result in the Board denying the benefits of the provisions of this subsection 14-3.3 to the landlord for the rental unit or rental units in question, or the Board ordering a reduction in rents for the tenants involved, or any other relief or sanction provided for by this Article.
b.
Rerental of Vacated Unit. The landlord shall file a monthly statement
with the Rent Review Officer certifying to the following:
1.
The apartment's or other unit's number and building number
of such vacated rental unit; and
2.
That the vacation of such rental unit was the voluntary act of the vacating tenant and that such vacation was not the result of landlord harassment or pressure upon such vacating tenant, or that the tenant vacated without notice, by judicial decree or by other circumstances permitted by this Article. (See subsection 14-3.3a); and
3.
There shall be "Notice" in the written lease above tenant's
signature, stating this unit is not subject to rent control or the
Cherry Hill Township Rent Review Regulations. The tenant acknowledges
that his/her unit's rent may be higher than other like units
in the complex. A written lease without the foregoing language will
be subject to rent control.
[Ord. # 2012-17, § 14-3.4, 6-11-12]
a.
General. All rent increases shall be applied for by petition.
1.
Effective Date of Increase. Landlords may not petition for more than
one (1) increase for any twelve (12) month period. A rental increase
authorized by the Board pursuant to this Article shall become effective
on the later of the first anniversary date of the immediately preceding
rental increase or the first date of the calendar month following
the date of the determination of the Board with respect to the petition.
No rental increase may become effective retroactively, i.e., effective
prior to the anniversary of the effective date of the last rent increase
approved by the Board. Thereafter, the next twelve (12) month period
with respect to which a landlord may petition for a rent increase
may commence no earlier than the first anniversary of the date the
immediately preceding rental increase becomes effective pursuant to
this subsection.
3.
Hearing Limitation. No hearing may be held if any municipal taxes,
municipal fees, municipal utility charges, County utility charges
or violations remain unpaid.
4.
When a petition is filed by a tenants' organization, in addition
to the information contained above, the tenants' association
must specify the units affected.
b.
Petitions. A petition for rent increase under subsection 14-3.4c.(CPI) and subsection 14-3.4d. (Hardship) shall state, and the Board shall approve, the manner in which the increase shall be apportioned among rental units and the effective date of the increase.
1.
Apportionment. The increases approved by the Board need not be apportioned in the same manner as requested in the petition (provided, that if a petition is filed pursuant to subsection 14-3.2a which provides for apportionment of rental increase on a proportionate square foot basis, the Board shall approve such apportionment). The percent (%) increase allocated to a rental unit shall not exceed the total percentage increase allowed by this Article. The alternative methods that may be approved are:
(a)
Apportionment of the increase on a proportionate square foot
basis; or
(b)
Apportionment of the increase on a scheduled basis by rental
unit; or
(c)
A combination of the methods described in subsection 14-3.4b1(a) and 14-3.4b1(b) (above) of this subsection 14-3.4.
2.
Written Statement Required. If a landlord requests an apportionment
of a rental increase in accordance with subsection 14-3.4bl(b) or
14-3.4bl(c) above, the petition shall be accompanied by a written
statement explaining why such method has been selected.
3.
Discretion of Board. The Board shall not approve a proposed method
of apportionment which is arbitrary, unreasonable, capricious or retaliatory.
5.
Certification. In addition, the petition shall contain a certification
by the landlord that the dwelling is in substantial compliance with
all Municipal ordinances as well as rules and regulations promulgated
pursuant to said ordinances; without limitation, these shall include
tax laws and the Cherry Hill Township Property Maintenance Code.
6.
Certification of Tax Collector. A petition shall contain a certification
from the Tax Collector of the Township that no taxes or assessments
for local improvements are due or delinquent. No petition shall be
approved if taxes are not current.
7.
Repair Checklist Required. Within two (2) business days after receipt of the notice of the hearing date pursuant to subsection 14-3.4c. (CPI) or subsection 14-3.4d. (Hardship), the landlord will serve upon each tenants' association of the subject dwelling and each tenant of the subject dwelling copies of a checklist, in the form promulgated by the Rent Review Officer. The checklist may be served with the notice of the hearing date and copy of the petition pursuant to subsection 14-1.6f. The checklist will provide tenants of the subject dwelling the opportunity to indicate the need to repair certain items at the subject dwelling, including items relating to maintenance, appliances and fixtures in the individual rental units and common areas, and such other items as are included in the checklist.
8.
Filing of Checklist. Within fourteen (14) days after the checklist
is served upon each tenants' association and the tenants of the
subject dwelling, any tenant of the subject dwelling may file with
the Rent Review Officer a completed checklist setting forth those
items which the tenant claims to be in need of repair. A copy of this
list shall be provided to the landlord by the tenant no later than
three (3) business days following the filing of the checklist with
the Rent Review Officer. The tenant may deliver the landlord's
copy to the management office or administrative office performing
similar duties located at the subject dwelling.
9.
Landlord Repair of Premises. Within fourteen (14) days of the tenants providing the checklist to the landlord under subsection 14-3.4b8 above, the landlord shall contact the tenant and make provisions, with specific time constraints, for the repairs. The landlord shall submit to the Rent Review Officer a copy of the checklist with indications of repairs made with date made; repairs which are to be made (by what date) and disputed repairs.
10.
Inspection of Premises. Within ten (10) days after the conclusion of the fourteen (14) day period set forth in subsection 14-3.4b9 above, the Rent Review Officer shall coordinate with a Township Inspector and shall schedule an inspection of the premises, of those items alleged to create an unsafe or unsanitary condition, inhabitability, or not in substantial compliance with the law, as set forth in subsection 14-3.4b12 and subject to dispute between the parties, and shall deliver to the landlord and tenant, either by certified mail, return receipt requested, or by personal delivery, notice of such inspection at least three (3) business days prior to the inspection regarding any disputed or delayed repairs. If, as a result of the inspection, an agreement is reached between the landlord and the tenant as to the items that are to be repaired, the landlord shall proceed to make the required repairs. In the event that the parties cannot agree as to the items designated on the checklist, the landlord will proceed promptly to repair items not subject to the dispute, and the disputed items only shall be submitted promptly to the Board by the Inspector for a determination as to whether such repairs must be effected. The Board may schedule a hearing within thirty (30) days after the submission of the disputed items to determine whether such repairs must be made. If the Board determines that any of such repairs are to be made, the landlord shall proceed to make such repairs.
11.
Hearing. All reasonable attempts shall be made to schedule a hearing by the Board within sixty (60) days after the last submission of a checklist by a tenant of the subject dwelling within the time period set forth in paragraph b8 of this subsection 14-3.4 above; however, the landlord may obtain a postponement in order to allow the landlord sufficient time to complete any repairs required pursuant to paragraphs b7 et seq. of this subsection 14-3.4. If the landlord is required, by the Board or the Inspector, to make any repairs pursuant to paragraphs b7 et seq. of this subsection 14-3.4, the Inspector shall schedule a reinspection of the subject dwelling promptly after notification by the landlord that such repairs are completed, and will provide to the landlord and tenant, either by certified mail, return receipt requested, or by personal delivery, at least three (3) business days notice of such reinspection. If no repairs are required to be made pursuant to paragraphs b7 et seq. of this subsection 14-3.4, or if the Inspector certifies that all required repairs have been made, the Board will grant the landlord's petition if made pursuant to subsection 14-3.4c. (CPI), or consider the landlord's petition, if made pursuant to subsection 14- 3.4d (Hardship). If repairs are required to be made but the Inspector does not certify that all such repairs have substantially been made, the Rent Review Board may take such action, including (a) deferral of the requested rent increase under subsection 14-3.4c. (CPI) or deferral of consideration of the petition under subsection 14-3.4d. (Hardship) until the required repairs are made or (b) reduction in the amount of the increase, as it deems appropriate and in the public interest under the circumstances.
12.
Determination of Conditions by Board. If the Board determines that
the dwelling subject to the petition, both as to common areas and
the individual rental units is in an unsafe or unsanitary condition,
is not habitable or is not in substantial compliance with any Municipal
ordinances, including without limitation, all property tax laws and
the Cherry Hill Property Maintenance Code, then the Board may refuse
to grant a petition for a rent increase or the Board may approve a
rent increase contingent upon the cure of any unsafe or unsanitary
conditions or violations. If a petition for a rent increase is granted
contingent upon the cure of any unsafe or unsanitary conditions or
violations, the Board will identify the conditions or violations,
the manner of cure, the budgetary allowance by the landlord for the
cure and the date by which the cure will be completed. The Board may
require the landlord to submit a supplementary certification that
the conditions or violations have been cured.
13.
Tenants Dispute of Certification. Tenants residing in the affected dwelling shall be permitted to dispute the certification of the landlord stating that the dwelling is in substantial compliance with all Municipal ordinances as well as rules and regulations promulgated under them, by testimony or other competent evidence. However, no tenant may testify as to the need to repair, failure to repair, or failure to properly repair items within the individual rental unit or common areas, if he or she did not file a checklist, consistent with this provision. In the event that such a factual dispute arises as to the issue of substantial compliance, the Board may order an inspection of the dwelling by the appropriate officer or employee of the Township, who shall submit a written report to the Board with copies made available to both the landlord and the complaining tenants. However, no additional inspection shall be required if an annual inspection has been conducted at the dwelling within ninety (90) days prior to the hearing regarding the requested rental increase or if the rental units that are subject to the dispute have been inspected pursuant to subsection 14-3.4a, et seq. In such case, the Board may consider the annual inspection report or the inspection report made pursuant to this subsection 14-3.4a, et seq. in lieu of ordering the inspection herein before provided. The Township inspection reports may be received into evidence and may be considered by the Board in reaching a determination as to substantial compliance.
14.
Substantial Compliance. The Board's determination as to substantial
compliance may be predicated upon both current and past Township inspection
reports, the testimony offered at hearings, and any other competent
evidence. The Board shall state by specific factual findings the basis
for its determination as to substantial compliance.
c.
Rent Increases Based Upon Changes in CPI. A landlord may petition
the Board for an annual increase in rent for all dwelling units under
rent control in the landlord's dwelling equal to the then current
Base Rent times the CPI Multiplier. The last CPI in effect at the
time the petition is filed shall be used in determining the CPI Multiplier.
The petition must be filed with the Rent Review Officer at the Township
office. The amount of the CPI Multiplier notwithstanding, a landlord
shall not petition for a rent increase, under this subsection, in
excess of five (5%) percent of the Gross Potential Allowable Rent.
1.
Time for Filing. A petition under this section may be filed no earlier
than seven (7) months following the date upon which the last rental
increase pertaining to the dwelling became effective.
2.
Disposition of Petition. If all requirements of sections for Standards (subsection 14-3.1b), Distribution of Rent Increases (subsections 14-3.4b1 and 14-3.4b2) and Compliance with Codes (subsection 14-3.4b14) pertaining to the petition have been satisfied by the landlord and if no repairs are required to be made pursuant to subsection 14-3.4b7 thru 14-3.4b14, or if the Inspector certifies that all required repairs have been made, the Board shall grant the landlord's petition.
d.
Rent Increases Based on Hardship. In no event may relief granted
under this paragraph d be less than the relief to which the landlord
would otherwise be entitled to obtain under paragraph c above (CPI).
1.
Limitations. Notwithstanding the foregoing, a landlord may not file
a petition under this section unless the landlord has owned the rental
complex in question for at least two (2) full years prior to the filing
of the petition; provided, however, that this limitation can be waived
upon clear and convincing proof by the landlord that this limitation
will result in a constitutionally impermissible confiscation of property
interest.
2.
Necessity. A rent increase may be granted under this paragraph d
if and to the extent the Board determines that such an increase is
reasonably necessary for one of the following purposes:
(a)
To permit a landlord to realize a just and reasonable rate of
return on such landlord's dwelling. A landlord will rebuttably
be presumed to be realizing a just and reasonable return on such landlord's
dwelling if the landlord's operating expenses with respect to
the subject dwelling (as adjusted pursuant to this section) does not
exceed fifty-seven and one-half (57.5%) percent of Gross Effective
Residential Rent Income of the subject dwelling for the twelve (12)
month period preceding the petition;
(b)
To return to a landlord the cost of completed property improvements, including interest over the normal economic life of such improvements. To the extent that these costs will materially and adversely diminish the return realized by the landlord on such landlord's dwelling (see subsection 14-3.4d5);
3.
Petitions. In addition to the general petition requirements of subsection 14-3.4a and 14-3.4b, the landlord petitioning for a rent increase under subsection 14-3.4d. (Hardship) shall also supply to the Board:
(a)
The landlord's financial statements (balance sheet, statement
of cash flows and income statement) for the most recent fiscal year
attributable to the operation of the dwelling, prepared by a certified
public accountant in accordance with generally accepted accounting
principles, accompanied by an "unqualified" audit opinion prepared
by a certified public accountant in accordance with both generally
accepted accounting principles and the accrual method of accounting;
(b)
An affidavit describing with respect to the dwelling, real estate
taxes actually paid, taxes placed in escrow pending appeals, and a
tax appeal history for the three (3) years preceding the petition,
including all financial data and appraisals made in support of or
actually presented to any tax board or tax court in support of such
tax appeal;
(c)
The cash investment of the landlord in the dwelling;
(d)
Copies of the agreement of sale and closing documents (including
notes, bonds, mortgages, personal guarantees and settlement statements)
relating to the dwelling utilized in connection with the last transfer
of the dwelling preceding the time of filing the petition, and, if
applicable, prior to any amendment thereof, together with an affidavit
describing the affiliation or lack of affiliation between all persons
or entities having any interest in the borrowing and lending entities
or persons;
(e)
Such other information as is relevant to the petition;
(f)
To the extent not readily ascertainable from the information
otherwise submitted pursuant to paragraph d3 of this subsection (14-3.4),
a schedule detailing the Gross Potential Residential Rent Income,
Other Income, Operating Expenses (including, without limitation, Management
Fees, which must be substantiated by checks, vouchers, receipts and
such other supporting documentation as is customary to substantiate
such expenses), Vacancy and Collection Loss and Scheduled (Allowed)
Rent Income.
4.
Availability of Records. The landlord shall make available to the
Board, at the landlord's place of business in the Township, the
books and records which support the financial statements. Such books,
records and the financial statements submitted to the Board pursuant
to this subsection shall be available for inspection by tenants of
the affected dwelling and their duly authorized representatives.
5.
Property Improvements Hardship. A petition seeking relief under paragraph
d of this subsection (14-3.4) for the purposes set forth in paragraph
d2(b) of this subsection (14-3.4) (Property Improvement Necessity)
shall include the following information:
(a)
A description of the actual property improvements made at the
subject dwelling;
(b)
The date the property improvements were performed;
(c)
The cost of the property improvements;
(d)
The estimated useful life of the property improvements;
(e)
The estimated residual value of the property improvements at
the end of their estimated useful life.
6.
Utility Necessity. A petition seeking relief under paragraph d of
this subsection (14-3.4) (Hardship) for the purposes set forth in
paragraph d5 above of this subsection (14-3.4) shall include the information
regarding the unexpected increase, including statements from providers
of utilities.
7.
Hearings. A hearing by the Board on any application for an increase
under paragraph d of this subsection (14-3.4) (Hardship) shall be
conducted as provided by the terms of this Article. However, no hearing
may be held if any municipal taxes, municipal fees, municipal utilities
charges, County utility charges or violations remain unpaid. At the
conclusion of such hearing, the Board may:
8.
Considerations. In reaching its determination regarding a petition under paragraph d. (Hardship) of this subsection 14-3.4, the Board shall consider the following:
(a)
Whether the dwelling is reasonably maintained and in a safe
and sanitary condition both as to the individual rental units and
the common areas;
(b)
Whether the dwelling has maintained the same housing standards
in its individual rental units and common areas as it did at the commencement
of the leases, including, but not limited to, amenities, utilities,
charges, maintenance, furnishings, equipment, bus service, off street
parking, refuse disposal, security and recreational facilities;
(c)
Whether both the landlord and the dwelling are in full compliance
with all municipal laws, including the terms of this Article, pertaining
to the said dwelling and to tenants' rights;
(d)
Whether or not the landlord's operating expenses exceeded
fifty-seven and one-half (57.5%) percent of the Gross Effective Residential
Rent Income and, if so, to what extent. Such computation shall be
based upon historical income and expense information, or based upon
such modifications as are fully documented by the landlord. In making
this evaluation, the landlord's operating expense shall be modified
as provided for under paragraph d9 of this subsection (14-3.4) below.
9.
Modifications of Landlord's Operating Expenses. The landlord's
operating expenses, pursuant to paragraph d8(e) above of this subsection
(14-3.4), shall be modified as necessary to reflect:
(a)
Taxes shall be limited to those amounts actually due and owing
at the time of filing of the petition;
(b)
Repairs and maintenance shall be limited to arms-length transactions
and shall be reasonable and necessary so as to be related to the maintenance
of the dwelling. Costs of service contracts shall be prorated over
the period covered. Painting costs shall be prorated over the number
of years of actual painting cycle in the building, but in no event
shall painting be prorated for a period of less than three (3) years
for the interior of rental units or five (5) years for the exterior
of the dwelling and common areas;
(c)
Purchases of new equipment shall be reflected and prorated to
cover the useful life of the equipment;
(d)
Professional fees shall be limited to reasonable and necessary
costs of the operation of the property. All such fees shall be itemized
in information supplied with the petition;
(e)
The permissible management fees shall not exceed five (5) percent
of the Gross Effective Residential Rent Income. The Board, however,
may, in its discretion, allow a greater percentage modification upon
clear and convincing proof that a greater percentage is necessary
based on actual management fees incurred;
(f)
Salaries not included in management fees shall be limited to
actual services performed, shall be reasonable and comparable to amounts
paid for similar positions in the area (including rental value, if
provision of a rental unit is made), and expenses, wages and benefits
paid;
(g)
Vacancy and collection loss shall not exceed six and one-half
(6.5%) percent of Gross Potential Residential Rent Income. The Board,
however, may in its discretion, approve a higher vacancy and collection
loss percentage upon clear and convincing proof that the higher percentage
is reasonable given prevailing market conditions;
(h)
Advertising shall be limited to actual costs that are reasonable
to ensure occupancy only;
(i)
Cost of utilities, including, but not limited to, gas, electric,
water and oil, and trash removal costs shall be derived from arms-length
transactions and the landlord shall demonstrate that all reasonable
efforts to conserve energy and fuels have been used;
(j)
Insurance costs shall be derived from arms-length transactions
and shall be prorated over the life of the policy and shall not include
any person's life, medical or other personal policies, other
than benefits paid to employees engaged in the actual operation of
the dwelling;
(k)
No penalties, fines or interest on same, for any reason, shall
be allowed;
(l)
Reserves for capital replacement shall be permitted as an operating
expense only if:
(1)
The landlord produces at the hearing a savings account passbook
or similar account verifying the existence of a reserve;
(2)
The landlord submits as part of this petition a detailed explanation
of how the reserve for capital replacement amount was computed, including
particularly the useful lives of each capital item involved and the
dollar amount attributable to them;
(3)
The landlord submits as part of the petition documentation to
show that the reserve fund has been utilized where replacement of
any of the capital items has occurred, and that replacement of capital
items has, in fact, occurred as their useful lives have expired;
(4)
The landlord submits to the Board, annually thereafter, a certification
from the bank, savings and loan association or similar institution,
as to the amount in reserve account and further submits a certified
and detailed explanation of any withdrawals made from said account;
(5)
If reserves for capital replacement are included in operating
expenses in connection with a petition, then, at the time of any sale
of the dwelling, the landlord shall submit to the Board a detailed
accounting of the disposition or transfer of the reserve account.
In no case shall the annual reserve for capital replacement exceed
three and one-half (3.5%) percent of the Gross Residential Rent Income;
(6)
The allowable mortgage debt service costs may be considered
based upon the present mortgage obligation, which is either the mortgage
obligation that was incurred at the time of the acquisition of the
property by the landlord or any reasonable refinancing arrangements.
The burden of proof as to the reasonableness of the mortgage debt
service costs rests with the landlord.
(m)
A Ground Lease or Land Lease may only be included in operating
expenses if said lease was instituted as a part of the original financing
of the property.
10.
Limitation of Rent Increases.
(a)
Rent increases under paragraph d, of this subsection 14-3.4 (Hardship) shall be limited to a maximum percentage rental increase of five (5%) percent.
(b)
Exceptions: Notwithstanding the limitation set forth in paragraph
d10(a) above, the rental increase sought may exceed the percentage
increase permissible in paragraph (a), provided that the applicant
proves upon clear and convincing evidence, and following all generally
accepted accounting principles where applicable, that this limitation
will result in a constitutionally impermissible confiscation of property
interests.
11.
Tenant Rebate. Should a landlord have been granted an increase in rent pursuant to paragraph of this subsection 14-3.4 (Hardship) based on operating expense computations that include a reserve for capital replacement, and thereafter, a tenant believes that the landlord failed to make proper use of the reserve for capital replacement as set forth in this section, then and in that event, the tenant may petition to the Board for appropriate rebate.
e.
Application of Rent Adjustments. Upon approval of a rent increase
by the Rent Control Board, the landlord shall apply the increase within
one (1) year from the date of the approval. Failure to apply an approved
rent increase within a one (1) year period shall result in forfeiture
of the increase.
[Ord. # 2012-17, § 14-3.5, 6-11-12]
a.
Tenant Petition for Decrease in Rent. A tenant or a tenant association
may petition for a decrease in rent where it is alleged that the landlord
is charging a rent in excess of that authorized under this section.
This petition shall be filed within one (1) year of the date of overcharging
or within six (6) months after a landlord's petition has come
up before the Board for review, whichever is longer.
b.
Petitions. Petitions for decrease in rent shall include the following:
1.
Statement of actual rent billed and paid for the period in question;
2.
Statement of amount billed or paid which is alleged to be in excess
of that allowed; and
3.
Detailed reasons why rent shall be decreased.
4.
When a petition is filed by a tenants' organization, in addition
to the information contained above, the tenants' association
must specify the units affected if the benefit of the decrease is
for less than all units. If the rent decrease would benefit all units,
then the tenants' association shall so state on the application.
c.
Considerations. In reaching its determination with regard to the petition made pursuant to this subsection 14-3.5, the Board may also consider the following:
1.
Whether the dwelling is in a safe and sanitary condition as to the
individual units and the common areas;
2.
Whether the dwelling has maintained the same housing standards in
its individual rental units and common areas as it did at the commencement
of the current leases, including, but not limited to, amenities, utilities,
charges, maintenance, furnishing, equipment, bus service, off-street
parking, refuse disposal and recreational facilities;
3.
Whether the landlord and the dwelling are in full compliance with
all municipal ordinances, including the terms of this Article, pertaining
to the dwelling and to tenants' rights.
d.
Deposit of Rent in Escrow. A tenant, upon filing a petition for decrease
in rent, may deposit monthly the disputed amount of rent in escrow
with a Bank under rules and regulations to be promulgated by the Board,
and shall pay the landlord the balance of the rent due.
e.
Effective Date. A rent decrease allowed under this section shall
become effective, at the request of the petitioner, as of the date
of the event giving rise to the right of action, provided the petition
was filed within ninety (90) days of the date the petitioner knew
or should have known of the events. In all other cases, the decrease
shall be effective as of the date of the petition.
See also Chapter 24, Trailer Court Code.
[Ord. # 2012-17, § 14-4.1, 6-11-12]
Mobile home parks, unless otherwise noted in this Article, are subject to the provisions of these Rent Review Regulations. Mobile home parks are not subject to permanent vacancy decontrol under subsection 14-3.3.
[Ord. # 2012-17, § 14-4.2, 6-11-12]
Unless otherwise noted below, the definitions of Section 14-2 shall pertain to this section.
Shall mean an owner, sub-lessor, assignee, or person or entity
receiving or entitled to receive rent or any agent of a person or
entity receiving or entitled to receive rent, including a court appointed
or statutory receiver or trustee.
Shall mean the area of land or real property which is rented
to the mobile or manufactured home owner or tenant.
Shall mean those areas within the Township in which mobile
or manufactured homes are installed.
Shall mean the mobile or manufactured home pad site or property.
Shall mean the lessee of the rental unit.
[Ord. # 2012-17, § 14-4.3, 6-11-12]
A mobile home park landlord may petition for any rent adjustment under the provisions of Section 14-3. Wherever appropriate, the term "premises" will be substituted for the term "dwelling."
a.
Standards. During a lease term, the landlord shall maintain the same
housing standards on its premises, property and pad site which it
was required to furnish by law, ordinance or lease, at the commencement
of the lease. Such standards include, but are not limited to, amenities,
utilities, charges, maintenance, furnishings, equipment, bus service,
off-street parking, security, refuse disposal and recreational facilities.
The housing standards shall not be reduced at the termination of leases
and prior to the commencement of succeeding leases.
b.
First Rental. Mobile home parks are restricted by the Zoning Ordinances
of Cherry Hill. The number of pad sites is limited as "pre-existing
nonconforming uses" pursuant to Township zoning regulations. Until
such time as the Zoning Ordinance is amended or the landlord is granted
an expansion to the pre-existing nonconforming use, there will be
no "first rental" adjustments for mobile home parks.
c.
Vacancy Decontrol Not Applicable. The Vacancy Decontrol Standards of subsection 14-3.3 shall not apply to mobile home parks.
d.
Rent Increases. Rent increase provisions under subsection 14-3.4 shall apply to mobile home parks unless otherwise excepted below.
2.
Rent Rolls. The rent rolls required in addition to the rent rolls required under subsection 14-3.4b4, shall be accompanied by a certified map of the pad sites and the tenants occupying same.
3.
Repair Checklist. The repair checklists referred to in subsections 14-3.4b7 et seq. shall refer to repairs and improvements made to the pad site and property of the mobile home parks and to any amenities or common areas supplied and maintained by the landlord.
4.
Inspection of Premises. The inspection of premises referred to in subsection 14-3.4b10 shall refer to the pad site, common areas and property of the landlord.
5.
Determination of Conditions by Board. If the Board determines that
the premises subject to the petition is in an unsafe or unsanitary
condition, is improperly maintained, or is not in compliance with
any Municipal Statutes, ordinances, and rules and regulations promulgated
pursuant to said statutes and ordinances, including, without limitation,
all tax laws, and the Cherry Hill Township Property Maintenance Code,
then the Board may refuse to grant a petition for a rent increase
or the Board may approve a rent increase contingent upon the cure
of any unsafe or unsanitary conditions or violations. If a petition
for a rent increase is granted contingent upon the cure of any unsafe
or unsanitary conditions or violations, the Board will identify the
conditions or violations, the manner of cure, the budgetary allowance
by the landlord for the cure and the date by which the cure will be
completed. The Board may require the landlord to submit a supplementary
certification that the conditions or violations have been cured.
6.
Tenants' Dispute of Certification. Tenants residing in the affected premises shall be permitted to dispute the certification of the landlord stating that the premises is in substantial compliance with all State and Municipal Statutes and ordinances as well as rules and regulations promulgated under them, by testimony or other competent evidence. In the event that such a factual dispute arises as to the issue of substantial compliance, the Board may order an inspection of the premises by the appropriate officer or employee of the Township, who shall submit a written report to the Board with copies made available to both the landlord and the complaining tenants. However, no additional inspection shall be required if an annual inspection has been conducted at the premises within ninety (90) days prior to the hearing regarding the requested rental increase or if the rental units that are subject to the dispute have been inspected pursuant to subsection 14-3.4a. et seq. In such case, the Board may consider the annual inspection report or the inspection report made pursuant to this subsection 14-3.4a. et seq. in lieu of ordering the inspection herein before provided. Said Township inspection reports may be received into evidence and may be considered by the Board in reaching a determination as to substantial compliance.
