[Ord. #741, S 1; Ord. #741-I-87-32, S 1; Ord. #90-02, SS
1,2]
As used in this Chapter:
Shall mean and include any building or structure, group or
complex of buildings or structures of which the whole or part thereof
is offered for rent to one or more tenants as housing space.
Shall mean all income resulting directly or indirectly from
the operating of a property or building including, but not limited
to, all rent received or collectable including any rent from a less
than arm's length transaction, the landlord's share of interest
on security deposits, all earnings from commission, vending machines,
deductions from security deposits, late fees, pet fees, parking fees,
pool fees, key charges, finder's fees, amounts received from
successful tax appeals, income from rebates, tax surcharges, sewer
charge surcharges, capital improvement surcharges, rent surcharges,
and hardship surcharges, computed in accordance with the provisions
and limitations of this Chapter.
Shall mean and include that portion of a dwelling rented
or offered for rent for living and dwelling purposes to one individual,
group of individuals, or family unit together with all privileges,
services, furnishings, furniture, equipment, facilities and improvements
connected with the use or occupancy of such portion of the property.
Shall mean the sum of the initial capital investment in the
dwelling plus the amount of principal reduction on any purchase money
mortgage on the dwelling plus any additional capital added to the
dwelling.
Shall mean action on the part of the landlord in refusing
to let, rent, relet or rerent to a tenant or basis for dispossess
for any one or more of the following:
The person fails to pay rent due and owing under the lease whether
the same be oral or written;
The person has continued to be, after written notice to cease,
so disorderly as to destroy the peace and quiet of the occupants or
other tenants living in said house or neighborhood;
The person has willfully or by reason of gross negligence caused
or allowed destruction, damage or injury to the premises;
The person has continued, after written notice to cease, to
substantially violate or breach any of the landlord's rules and
regulations governing said premises, provided such rules and regulations
are reasonable and have been accepted in writing by the tenant or
made a part of the lease at the beginning of the lease term;
The person has continued, after written notice to cease, to
substantially violate or breach any of the covenants or agreements
contained in the lease for the premises where a right of re-entry
is reserved to the landlord in the lease for a violation of such covenant
or agreement, provided that such covenant or agreement is reasonable
and was contained in the lease at the beginning of the lease term;
The person has failed to pay rent after a valid notice to quit
and notice of increase of said rent, provided the increase in rent
is not unconscionable and complies with any and all other laws or
municipal ordinances governing rent increases;
The landlord or owner: (1) seeks to permanently board up or
demolish the premises because he has been cited by local or State
housing inspectors for substantial violations affecting the health
and safety of tenants and it is economically unfeasible for the owner
to eliminate the violations; (2) seeks to comply with local or State
housing inspectors who have cited him for substantial violations affecting
the health and safety of tenants and it is unfeasible to so comply
without removing the tenant; simultaneously with service of notice
of eviction pursuant to this clause, the landlord shall notify the
Department of Community Affairs of the intention to institute proceedings
and shall provide the Department with such other information as it
may require pursuant to rules and regulations. The Department shall
be invited to inform all parties, the court and/or the Rent Stabilization
Board of its view with respect to the feasibility of compliance without
removal of the tenant and may in its discretion appear and present
evidence; (3) seeks to correct an illegal occupancy because he has
been cited by local or State housing inspectors and it is unfeasible
to correct such illegal occupancy without removing the tenant; or
(4) is a governmental agency which seeks to permanently retire the
premises from the rental market pursuant to a redevelopment or land
clearance plan in a blighted area;
The owner seeks to retire permanently the residential building
or the mobile home park from residential use or use as a mobile park,
provided this paragraph shall not apply to circumstances covered under
paragraph g of this definition;
The landlord or owner proposes, at the termination of a lease,
reasonable changes of substance in the terms and conditions of the
lease, including specifically any change in the term thereof, which
the tenant, after written notice, refuses to accept; provided that
in cases where a tenant has received a notice of termination pursuant
to section 3 g. of P.L. 1974, c. 49 (C. 2A:18-61.2), or has a protected
tenancy status pursuant to section 9 of the "Senior Citizens and Disabled
Protected Tenancy Act," P.L. 1981, c. 226 (C. 2A:18-61.30) the landlord
or owner shall have the burden of proving that any change in the terms
and conditions of the lease, rental or regulations both is reasonable
and does not substantially reduce the rights and privileges to which
the tenant was entitled prior to the conversion;
The person, after written notice to cease, has habitually and
without legal justification failed to pay rent which is due and owing;
The landlord or owner of the building or mobile home park is
converting from the rental market to a condominium, cooperative or
fee simple ownership of two or more dwelling units or park sites,
except as hereinafter provided in paragraph l., and provided, further,
this paragraph k shall not apply against a senior citizen tenant or
disabled tenant with protected tenancy status pursuant to the "Senior
Citizens and Disabled Protected Tenancy Act," P.L. 1981, c. 226 (C.
2A:18-61.22 et seq.) as long as the agency has not terminated the
protected tenancy status or the protected tenancy period has not expired;
The owner of a building or mobile home park, which is constructed
as or being converted to a condominium, cooperative or fee simple
ownership, seeks to evict a tenant or sublessee whose initial tenancy
began after the master deed, agreement establishing the cooperative
or subdivision plat was recorded, because the owner has contracted
to sell the unit to a buyer who seeks to personally occupy it and
the contract for sale calls for the unit to be vacant at the time
of closing;
The owner of condominium or cooperative units seeks to evict
a tenant whose initial tenancy began by rental from an owner of units
after the master deed or agreement establishing the cooperative was
recorded, because the owner seeks to personally occupy the unit, or
has contracted to sell the unit to a buyer who seeks to personally
occupy it and the contract for sale calls for the unit to be vacant
at the time of closing;
The owner of a building of residential units seeks to personally
occupy a unit, or has contracted to sell the residential unit to a
buyer who wishes to personally occupy it and the contract for sale
calls for the unit to be vacant at the time of closing;
The landlord or owner conditioned the tenancy upon and in consideration
for the tenant's employment by the landlord or owner as superintendent,
janitor or in some other capacity and such employment is being terminated.
Shall mean the owner of a dwelling or the purchaser under
contract to purchase a dwelling.
Shall mean a capital improvement enhancing the property and
having an anticipated useful life of at least five years and a cost
of at least $1,000.
Shall mean all valid expenses incurred and paid by a landlord
for a residential rental property during the period reflected in income
computed in accordance with the provisions and limitations of this
Chapter.
Shall mean all "Housing space" and "Dwellings" subject to
the provisions of this Chapter.
Shall mean any individual, group of individuals or family
unit renting or proposing to rent housing space from a landlord.
[Ord. #741, S 2]
A landlord shall not refuse to rent, relet or rerent housing
space or terminate a landlord-tenant relationship except for just
cause.
[Ord. #741, S 3]
This Chapter shall apply to the rental of all housing space
and dwellings within the Borough unless specifically exempted herein.
[Ord. #741, S 4; Ord. #741-H-87-9]
The owner of housing space being rented for the first time shall
not be restricted in the initial rent he charges. Any subsequent rental
increases, however, shall be subject to the provisions of this Chapter.
Exempt from the provisions of this Chapter are hotels, motels and
similar-type transient rental uses. Whenever housing space in a dwelling
of less than 11 units of housing space shall become vacant through
the voluntary act of the tenant, or a dispossession with just cause,
said housing space shall thereafter be exempt from the provisions
of this Chapter.
Whenever housing space in a dwelling of more than 10 units of
housing space shall become vacant through the voluntary act of the
tenant, or a dispossession with just cause, this housing space shall
be exempt from the rental increase limitations of this Chapter for
the purpose of establishing the initial rent of the new tenant. Thereafter,
the rental increase limitations set forth in this Chapter shall apply.
The initial rent established for a new tenant shall not provide for
subsequent increases in excess of that permitted by this Chapter.
[Ord. #741, S 5; Ord. #741C-84-20, S l]
No landlord may request or receive a rental increase for housing
space more often than once in any 12 month period unless such increase
is authorized by the Rent Stabilization Board; and
[Ord. #741, S 6; Ord. #741C-84-20,S l]
Any rental increase at a time other than at the termination
of a lease term or periodic tenancy shall be void unless such increase
is authorized by the Rent Stabilization Board; and
a.Â
In the case of a written lease, the tenant agreed, in advance, to
be responsible for any such increase; or
b.Â
In the case of a verbal rental, the increase shall not take effect
for at least one full rental period after notification to the tenant
of the Rent Stabilization Board's decision.
Any rental increase in excess of that authorized by the provisions
of this Chapter shall be void.
[Ord. #741, S 7; Ord. #741-I-87-32, S 2]
Any landlord seeking an increase in rent shall notify the tenant
in writing, by personal service or by certified mail, of the calculations
involved in computing the increase. Annually the landlord shall notify
the tenant in writing, by personal service or by certified mail of
the calculations involved in computing the Tax, Sewer Charge, Trash
Removal, Major Capital Improvement Surcharge and Hardship Increase
Components regardless of whether an increase in rent is sought.
[Ord. #741, S 8; Ord. #741-85-35, S 2; Ord. #741-I-87-32,
S 2]
Rent or total rent shall be divided into the following six components:
[Ord. #741, S 8; Ord. #741-85-35, S 2; Ord. #741-I-87-32,
S 2]
The monthly Base Rent Component for housing space shall be the
total monthly rent for such housing space minus the sum of the monthly
Tax Component, the monthly Sewer Charge Component, the monthly Trash
Removal Component, and if applicable, the monthly Major Capital Improvement
Surcharge Component and the monthly Hardship Increase Component for
that housing space.
[Ord. #741, S 8; Ord. #741-85-35, S 2; Ord. #741-F-86-29,
S l; Ord #741-G-87-1, S l; Ord. #741-I-87-32, S 2]
The monthly Tax Component for housing space shall be one-twelfth
(1/12) the annual real property tax for the dwelling divided by the
total number of rooms in the dwelling and multiplied by the total
number of rooms in the particular housing space.
Should housing space in a dwelling be converted to a condominium,
cooperative, or fee simple ownership, any increase in taxes attributable
to the housing space which is solely the result of the conversion
may not be passed on to the tenant. In the case of housing space in
a dwelling so converted, the monthly tax component shall consist of
the sum of:
a.Â
A monthly base tax component which shall be an amount equivalent
to the monthly tax component for the year prior to assessment of the
dwelling as a conversion; and
b.Â
An amount equivalent to the monthly base tax component multiplied
by the percentage by which taxes in the municipality have increased
since the year prior to assessment of the dwelling as a conversion.
[Ord. #741-S 8; Ord. #741-85-35, S 2; Ord. #741-I-87-32,
S 2]
The monthly Sewer Charge Component for housing space shall be
one-twelfth (1/12) the annual sewer usage charge for the dwelling,
divided by the total number of rooms in the dwelling and multiplied
by the number of rooms in the particular housing space.
[Ord. #741 S 8; Ord. #741-85-35, S 2; Ord. #741-I-87-32,
S 2]
The monthly Major Capital Improvement Surcharge Component shall
be one-twelfth (1/12) the annual major capital improvement surcharge
attributable to the housing space.
[Ord. #741, S 8; Ord. #741-85-35, S 2; Ord. #741-I-87-32,
S 2]
The monthly Hardship Increase Component shall be one-twelfth
(1/12) the annual hardship increase component attributable to the
housing space.
[Ord. #741-I-87-32, S 8]
The monthly Trash Removal Component for housing space shall
be the most recent month's trash removal charges for the dwelling,
divided by the total number of rooms in the dwelling and multiplied
by the total number of rooms in the housing space.
[Ord. #741, S 8; Ord. #741-85-35, S 2]
The annual Sewer Charge Component for 1985 shall be the total
sewer usage charge for the dwelling for 1985 divided by the total
number of rooms in the dwelling and multiplied by the number of rooms
in the particular housing space. Upon receipt by a landlord of the
final sewer usage charge bill from the Borough for 1985, the landlord
shall promptly determine the amount owed by each tenant for 1985 and
compare that to the amount paid to the landlord as the Sewer Charge
Component. If by December 31, 1985, the tenant will not have paid
the total amount owed, then the landlord may collect the difference
as "additional rent" with the December 1985 rent payment. If by December
31, 1985, the tenant will have overpaid the amount owed as the annual
Sewer Charge Component, the landlord shall reduce the amount owed
by the tenant for December rent by an amount equivalent to the overpayment
for the 1985 Sewer Charge Component.
[Ord. #741, S 8; Ord. #741-85-35, S 2; Ord. #741-I-87-32,
S 2]
If a landlord receives a 20% sewer usage surcharge as a result
of no water meter readings, the responsibility for payment of the
surcharge will be determined as follows:
a.Â
If access to the water meter is controlled by the landlord, the landlord
shall be solely responsible for the surcharge and shall not pass same
through to any tenant;
b.Â
If access to the water meter is controlled by a tenant, the total
amount of the surcharge may be passed through to the tenant with control
of access to the water meter.
c.Â
If access to the water meter is controlled by two or more tenants,
the total amount of the surcharge may be passed through in equal portions
to the tenants with control of access to the water meter.
d.Â
If access to the water meter is controlled jointly by a landlord
and one or more tenants, the total amount of the surcharge shall be
divided equally among the landlord and tenants with control of access
to the water meter, and a proportionate share of the surcharge may
be passed through to each of such tenants.
[Ord. #741, S 8; Ord. #741-85-35, S 2; Ord. #741-I-87-32,
S 2]
The most current tax, sewer usage and trash removal charge figures
available shall be utilized at the inception of a rental term for
the purpose of establishing the Tax Component, Sewer Charge Component
and Trash Removal Component for that rental term.
Neither the Tax Component nor the Sewer Charge Component nor
the Trash Removal Component shall be increased more frequently than
once every 12 months for any tenancy.
[Ord. #741, S 8; Ord. #741-85-35, S 2; Ord. #741-I-87-32,
S 2]
Whenever housing space is part of a dwelling of residential
and nonresidential uses, the following provisions shall apply for
the purpose of calculating all components of total rent for a particular
housing space excepting the Base Rent Component:
The portion of the tax, charge or cost for the dwelling shall
be divided by the number of floors in the dwelling. The tax, charge
or cost attributable to a residential floor shall then be divided
by the number of rooms on the floor and multiplied by the number of
rooms in the housing space.
When computing rent utilizing the Trash Removal Component for the first time, a landlord shall subtract one-twelfth (1/12) the total of the last 12 months trash removal charges for the dwelling, divided by the total number of rooms in the dwelling and multiplied by the total number of rooms in the housing space from the pre-existing monthly Base Rent Component in order to establish a new monthly Base Rent Component upon which to calculate a percentage increase in base rent under Section 12-9 of this Chapter.
[Ord. #741, S 9; Ord. #741-85-35, S 2; Ord. #741-F-86-29,
S 9; Ord. #741-G-87-1, S 2; Ord. #741-I-87-32, S 2]
Establishment of rents between a landlord and tenant to whom
this Chapter is applicable shall hereafter be determined by the provisions
of this Chapter. At the termination of a lease term or periodic tenancy,
no landlord may request or receive an increase in rent greater than
4% of the Base Rent Component in the event the landlord does not supply
heat for the housing space and 5% of the Base Rent Component in the
event the landlord does supply heat for the housing space. The landlord
may increase the Tax Component, Sewer Charge Component and the Trash
Removal Component subject to the limitations of this Chapter. In the
event of a reduction in real property taxes or sewer usage charges
or trash removal charges, for whatever reasons, the landlord shall
reduce the Tax Component and/or the Sewer Charge Component and/or
the Trash Removal Component utilizing the formula provided in this
Chapter. No increase in rent shall be effective for any period of
time during which there is a valid outstanding notice (whose correction
period has expired) by local or State authorities for violations of
Property Maintenance, Health, or Fire regulations substantially affecting
the use and enjoyment of the particular housing space or the facilities
incident to the rental of the particular housing space.
No landlord shall impose any mandatory charge or fee not currently
in effect unless same be included as a part of the Base Rent Component.
Any separate charge or fee presently in effect for services or facilities
such as garbage spaces, parking spaces, swimming pool membership or
similar services and facilities, if mandatory, shall be subject to
a 4% increase limitation.
[Ord. #741, S 10: Ord. #741-85-35, S 2; Ord. #741-F-86-29,
S 9; Ord. # 741-G-87-1, S 2]
A landlord shall not transfer the responsibility of paying for
the heating of housing space from the landlord to the tenant unless:
a.Â
The fuel for heating the housing space shall be separately metered;
b.Â
The heating unit(s) serving the housing space shall not serve any
other housing space or nonresidential unit; and
c.Â
The tenant shall have a method of controlling the amount of heat
provided. The tenant shall be entitled to a base rent reduction which
shall be computed as follows:
1.Â
If the landlord and a majority of tenants agree in writing that a
more expensive operational cost is mutually beneficial to both landlord
and tenants, an amount not less than one year's actual incurred
heating costs shall be divided by the total number of rooms in the
dwelling to determine the amount of rent reduction per room. Heated
common space will be included in the room count.
2.Â
In any other case, the landlord's previous season's fuel
heating cost shall be adjusted by a factor defined as the cost-per-BTU
of the previous season's heating fuel divided by the cost-per-BTU
of the new heating fuel. This factor shall be multiplied by at least
one year's fuel heating cost and divided by the number of rooms
in the dwelling. The result shall be the rent reduction per room.
Heated common space will be included in the room count.
[Ord. #741, S 11]
A landlord shall not withhold the payment of that portion of
municipal property taxes for which a Tax Component has been collected
from any tenant. A landlord shall not withhold the payment of that
portion of municipal sewer user charges for which a Sewer Charge Component
has been collected from any tenant.
[Ord. #741, S 12]
A landlord filing a tax appeal for a dwelling shall notify all
tenants of that dwelling, in writing, by personal service or certified
mail, that a tax appeal has been filed. The notice shall be served
within 15 days of filing the appeal.
In the event a tax appeal is taken by a landlord and a reduction
in taxes is granted, the landlord obtaining a determination that a
sum of money is due from the Borough, the landlord shall, after deducting
all reasonable expenses in prosecuting the appeal, pay 50% of the
balance due from the Borough to the tenants proportioned on a per
room basis.
[Ord. #741, S 13]
Any increase in total rent, or imposition of other charges,
in excess of those authorized by this Chapter shall be voidable.
[Ord. #741, S 14]
The Rent Stabilization Board created by the Administrative Code
of the Borough is hereby granted, and shall have and exercise, in
addition to other powers herein granted, all powers necessary and
appropriate to carry out and execute the purposes of this Chapter
including, but not limited to, the following:
a.Â
To issue and promulgate such rules and regulations as it deems necessary
to implement the purposes of this Chapter which rules and regulations
shall have the force of law until revised, repealed or amended by
the Board in the exercise of its discretion, provided that such rules
are filed with the Borough Clerk and approved by Resolution of the
Borough Council.
b.Â
To supply written information to landlords and tenants to help them
comply with the provisions of this Chapter.
c.Â
To hold hearings and adjudicate applications from landlords for additional
rental as authorized by the provisions of this Chapter.
d.Â
To hold hearings and adjudicate applications from tenants for reduced
rental in accordance with the provisions of this Chapter.
e.Â
To hold hearings and adjudicate disputes between landlords and tenants
arising under the provisions of this Chapter provided, however, there
shall be no hearing or adjudication of a dispute unless application
for such hearing and adjudication shall have been filed within one
year of the date of the event giving rise to the dispute.
f.Â
To permit a member of the Board who did not attend a meeting to participate
in the final decision of an application considered at the meeting,
provided the member certifies in writing to the Board that he has
listened to the tape recording of that portion of the meeting at which
the application was considered and has examined all exhibits admitted
into evidence, and, provided further, the applicant and any objectors
to the application consent to the member's participation in the
final decision.
g.Â
To retain the services of such experts as the Board shall determine
to be appropriate subject to the Board's budgetary appropriation.
In the event the Board shall not reach a final decision on an
application within 120 days of the filing of the application, the
application shall be deemed to have been denied unless the applicant
shall consent, in writing, to a specified extension of the time within
which a decision may be rendered by the Board.
[Ord. #741, S 15]
The Rent Stabilization Board shall give reasonable opportunity
to be heard to both landlord and tenant before making any determination,
and shall, within three business days of making a determination, mail
written copies of the determination to all interested parties.
[Ord. #741, S 16; Ord. #741E-85-35, S 2]
The Rent Stabilization Board shall not entertain any application
for relief by a landlord until it has determined that the landlord
has, at least 30 days prior to the filing of the application (or at
the inception of the rental term to a tenant of less than 30 days),
provided tenants with copies of the "Truth in Renting Statement,"
the "Fact Sheet" prepared by the Rent Stabilization Board, and this
Chapter.
The Rent Stabilization Board shall not afford relief to a landlord
if it finds the landlord is in noncompliance with material provisions
of this Chapter and such noncompliance is the fault of the landlord.
The Rent Stabilization Board shall not afford relief to a landlord
for any period of time during which there is a valid outstanding notice
(whose correction period has expired) by local or State authorities
for violations of Property Maintenance, Health, or Fire Regulations
substantially affecting the use and enjoyment of the particular housing
space or the facilities incident to the rental of the particular housing
space.
[Ord. #741, S 17; Ord. #741B- 83-18, S l]
Either a landlord or tenant may appeal the determination and
finding of the Rent Stabilization Board to the Council by filing a
written notice of appeal upon the Borough Clerk and by serving a copy
of the notice upon the adverse party by certified mail. The notice
shall be filed and served within 30 days of the date of written notification
by the Board of its determination for the purposes of this Section,
the date of written notification shall be the date upon which the
Board mailed a copy of its determination to the party appealing. Within
10 days thereafter the appellant shall, in writing, order an original
and one copy of the transcript of the proceedings before the Board
from the Borough Clerk and shall, within the 10 day period, deposit
with the Clerk the anticipated cost of transcription. One copy of
the transcript shall, upon receipt, be delivered to the appellant
and the original shall be filed with the Clerk for the use of the
Council and the public. The appeal shall be decided by the Council
on the basis of the record before the Rent Stabilization Board and
legal argument before the Council.
[Ord. #741, S 18]
The Council may conduct an annual review of the percentage increase
of Base Rent Component permitted and the necessity for rent stabilization
and the effectiveness of this Chapter in balancing the needs of landlords,
tenants, and the community. The annual review shall be discretionary
and the failure of the Council to conduct such review or to prepare
a report shall not affect the continued validity of this Section.
[Ord. #741, S 19; Ord. #741-I-87-32, S 2]
a.Â
Whenever a landlord shall determine that the dwelling is not providing
a return on the landlord's investment of at least the fair rate
of return established by a Resolution of the Borough Council adopted
no later than March of each year, the landlord may make application
to the Rent Stabilization Board for a hardship increase of rent to
be effective for a period not to exceed four years.
b.Â
In any such application the landlord shall allege that:
1.Â
He is an efficient operator of the property;
2.Â
The property is in a safe and sanitary condition and that no outstanding
violations of State or Municipal Health, Building or Fire codes exist
that have exceeded the time allowed for correction;
3.Â
The landlord is in compliance with State and local laws pertaining
to tenants' rights;
4.Â
All rentals collected and charges paid are the result of arm's
length transactions;
5.Â
All sales and/or financing of the dwelling in question shall be as
a result of arm's length transactions.
c.Â
In computing the gross maximum authorized rent for each rental unit,
the following limitations shall apply in all cases:
1.Â
No allowance shall be permitted for a vacancy of a habitable unit;
2.Â
Income and expenses arising out of nonresidential use including that
for professional or commercial space shall arise from arm's length
transactions;
3.Â
No loss caused by a nonresidential use may be considered;
4.Â
The existing rent on non-rent-controlled units shall be assumed to
be representative of the market value;
5.Â
The highest rent chargeable for a rent-controlled unit shall not
exceed the highest rent charged for a non-rent-controlled unit of
the same type in the same complex at the time of the filing of the
hardship application.
d.Â
In computing reasonable and necessary expenses under this Chapter,
the information provided should agree with that shown on the owner's
federal income tax return with the following exceptions:
1.Â
All depreciation or other capital recovery charges will be computed
on a straight-line basis;
2.Â
Management fees are limited to salaries, postage, telephone, supplies,
repair parts and the market value of the manager's apartment
(if any). In no case shall the management fees exceed 3% of the gross
rental income of the property;
3.Â
All other expenses shall derive from arm's length transactions.
The Rent Stabilization Board may disallow expenses if the Board finds
such expenses were improperly incurred;
4.Â
No penalties or fines imposed as a result of a failure to comply
with local or State Health, Building, Fire or Safety codes shall be
allowed as expenses;
5.Â
Any capital expenditure which the Rent Stabilization Board has deemed not to be a capital improvement as defined in Section 12-20 shall be prorated as an expense over the useful life of the improvement as defined by the federal income tax depreciation schedule provided by the applicant;
6.Â
Any interest expense incurred by the landlord shall be construed
as a valid expense as long as the principal was used to support or
improve the dwelling in question.
e.Â
The landlord shall make application to the Rent Stabilization Board
together with all necessary certifications including an application
by the owner and/or his agent to demonstrate that the dwelling in
question is not earning a fair return on investment. The application
shall include current rent, the requested amount of increase in base
rent, and the percentage of increase requested for each housing space.
Housing space not under rent control will be identified and the current
rent indicated. Data on gross maximized annual income and expenses
experienced by the applicant for the most recent fiscal year must
be provided. At the time of application the landlord shall notify
all tenants of the dwelling that an application is being made and
is available to any tenants requesting same. The owner shall make
available to all tenants and the Rent Stabilization Board all records
and books supporting the application. Any tenant, group of tenants
or tenants' association affected by the application who wishes
to be heard at the public hearing must notify the Rent Stabilization
Board of his, their or its intention and the Board will permit the
tenant, group of tenants or tenants' association to be parties
to the hearing.
f.Â
Within 45 days of receipt of the completed application, or 30 days
in the event of federal or State involved housing, the Rent Stabilization
Board will hold a public hearing and make a recording of that hearing.
If due to no fault of the owner the Rent Stabilization Board does
not reach a decision on the application within 75 days of the date
of application, the owner shall be entitled, upon notice to the tenants
affected, to collect the amount requested in the application provided
the amount does not exceed 20% of the current Base Rent Component.
If the requested increase exceeds 20% of the current Base Rent Component,
the landlord shall be limited to only 20% until the determination
is reached by the Rent Stabilization Board. The Board may proceed
to stay the increase by resolution if the delay has been contributed
to by the landlord. Any increase paid by the tenant shall be without
prejudice to either the landlord or the tenant and shall not be construed
as the annual increase allowed under this Chapter. If the Board determines
that the increase that the landlord has collected is other than that
determined as correct by the Board, the total amount of the difference
shall be due and payable at the next date rent is due after written
notice from the Board of its decision. The tenant may deduct any overcharge
from the rent due, and if the landlord is owed money it shall be paid
by the tenant as additional rent.
g.Â
If after a full hearing the Rent Stabilization Board shall determine
that the landlord is in full compliance with the provisions of this
Chapter, it shall permit a rental increase sufficient to re-establish
the allowed rate of return on investment. The Board will use a method
which allocates the increase to an individual unit such that the unit
with the lowest rental has the highest increase but pays no more rent
than the next lowest unit of the same type. Housing space units with
fewer rooms will pay less than units with more rooms. In no case will
the maximum rent charged any rent-controlled housing space unit exceed
the maximum rent requested for a non-controlled unit of the same type
in the same building.
h.Â
Any increase granted under the provisions of this Section 12-19 shall be valid for a period as designated by the Rent Stabilization Board but not to exceed four years. If the landlord seeks to establish a hardship increase period beyond that granted by the Board, the landlord shall be required to file a new hardship application with the Rent Stabilization Board. In order to maintain the hardship for the full four year period, the landlord is required to provide an interim report to the Rent Stabilization Board within 30 days of the two year anniversary of the award of the hardship increase which identifies each housing space unit, the name of the tenant of the unit and the rent currently being charged. Failure to provide such report shall nullify the remaining two years of the hardship increase.
i.Â
The Borough Council shall establish the fair rate of return on investment
allowed under this Chapter by determining the average interest rate
on passbook accounts paid by the banks and savings and loan establishments
located in North Plainfield and adding 3% to that rate.
j.Â
A tenant who believes that an increase is excessive will be granted
a reduction in the hardship increase if the tenant can demonstrate
both that:
[Ord. #741, S 20]
A landlord may seek a surcharge for major capital improvements
or additional services. The landlord must notify each tenant in writing
and by certified mail of:
a.Â
The total cost of the completed major capital improvement, the number
of years of useful life of the improvement as claimed for depreciation
on federal income tax returns, the total number of rooms in the dwelling,
the number of rooms occupied by the tenant, the average cost per room,
and the surcharge being sought from the tenant.
b.Â
The nature of the additional service, total cost of additional service,
the total number of rooms occupied by the tenant, the average cost
per room, and the surcharge being sought from the tenant.
Any landlord seeking a major capital improvement or additional
services surcharge shall apply to the Rent Stabilization Board which
shall determine: If a major capital improvement has been completed
and, if so, the reasonableness of the proposed surcharge, which shall
be prorated over the useful life of the major capital improvement;
or, if an additional service has been provided and, if so, the reasonableness
of the proposed surcharge. Should the Board determine the proposed
surcharge to be reasonable, it shall allow same, but in no event shall
any such surcharge exceed 15% of the tenant's rent. If the surcharge
is granted, it shall not be considered rental for the purpose of calculating
rental increases pursuant to this Chapter.
[Ord. #741, S 21; Ord. #741-H-87-9]
The following fees shall be paid to the Rent Stabilization Board
by the applicant:
[Ord. #741, S 22]
During the term of this Chapter a landlord shall maintain the
same standards of service, maintenance, furniture, furnishings or
equipment in the housing space and dwelling as he provided or was
required to do by law, lease, or agreement at the date the lease was
entered into or periodic tenancy commenced.
[Ord. #741, S 23]
An individual tenant or a class of tenants who are not receiving
substantially the same standards of service, maintenance, furniture,
or furnishings or equipment may apply to the Rent Stabilization Board
for a determination of the reasonable rental value of the housing
unit or dwelling in view of this deficiency. The tenant or class of
tenants shall pay the reasonable rental value as full payment for
rent until the landlord proves that the deficiency has been corrected.
[Ord. #741, S 24]
No landlord shall charge any rents in excess of those which
he was charging from the effective date of this Chapter except for
increases authorized by this Chapter; provided, however, any rental
increase authorized by Ordinance No. 646 as amended shall be valid
if notice thereof in accordance with the requirements of Ordinance
No. 646 as amended shall have been served prior to the effective date
of this Chapter.
[Ord. #741C-84-20]
No later than January 1, 1985, or 30 days following opening
in the event of any new rental property, the owner of housing space
in a dwelling of more than five units shall certify in writing to
the Borough Clerk the number of rooms in each building forming a part
of the dwelling. In the event of any change in the number of rooms
in the dwelling, the landlord, within 30 days following any such change,
shall file an accurate amendatory certification with the Borough Clerk.
[Ord. #741, S 26]
A willful violation of any provision of this Chapter including, but not limited to, the willful filing with the Rent Stabilization Board of any material misstatement of fact, shall be subject to a penalty as established in Chapter 1, Section 1-5. A violation affecting more than one housing space shall be considered a separate violation as to each housing space.
[Ord. #741, S 27]
This Chapter being necessary for the welfare of the Borough
and its inhabitants, it shall be liberally construed to effectuate
the purposes thereof.
[Ord. #621, Sl]
No person, nor any agent, officer or employee thereof shall
threaten to or take reprisals against any tenant as a result of:
a.Â
The tenant's efforts to secure or enforce any rights under the
lease or contract, or under the laws of the State of New Jersey, or
of the Borough of North Plainfield, or of the United States; or
b.Â
The tenant's good faith complaint to a governmental authority
of the landlord's alleged violation of any health, safety code
or building code, or of any other ordinance, State law or regulation
having as its objective the regulation of premises used for dwelling
purposes; or
c.Â
The tenant's being an organizer of, a member of, or involved
in any activities of, any lawful organization; or
d.Â
The tenant's serving in any elective or appointive office or
position of the Borough.
[Ord. #621, S 2]
In any prosecution brought under this Section, the Court may
infer that a reprisal was threatened or taken if the landlord:
a.Â
Threatens to serve or serves a notice to quit upon any tenant; or
b.Â
Threatens to institute or institutes any action against a tenant
to recover possession of premises, whether by summary dispossess proceedings,
civil action for the possession of land, or otherwise; or
c.Â
Threatens to alter substantially or alters substantially the terms of any tenancy (substantial alteration shall include the refusal to renew a lease or to continue a tenancy of the tenant without cause after the tenant has requested a renewal of the lease or tenancy not sooner than 90 days before the expiration date of the lease or tenancy, or the renewal date set forth in the lease agreement, whichever later occurs) after the tenant has engaged in any action set forth in paragraphs a, b, c, and d of subsection 12-28.1, provided, however, no reprisal shall be inferred as a result of any actions set forth in paragraph b of subsection 12-28.1 unless the tenant shall have first brought the good faith complaint to the attention of the landlord and shall have afforded the landlord a reasonable time to correct the alleged violation prior to complaining to the governmental authority.
[Ord. #621, S 3]
This Section shall apply to all rental premises or units used
for dwelling purposes within the Borough except owner-occupied premises
with not more than two rental units.
