[Adopted 10-13-2020 by Ord. No. 2468[1]]
[1]
Editor's Note: This ordinance also superseded former Art.
III, Rent Leveling, adopted 3-26-2019 by Ord. No. 2429.
As used in this article, the following terms shall have the
meanings indicated:
An amount of rental applicable to each dwelling unit covered by this article as of the commencement of the letting of that unit as such amount may have subsequently been actually increased thereafter from year to year by the landlord pursuant to § 212-13 of this article, including any accumulated tax surcharge added thereto pursuant to § 212-17 of this article in effect prior to April 29, 1999.
One or more rooms providing living facilities designed or
used for one household in a multiple dwelling as herein defined.
As applied in § 212-16A(2) hereof means any circumstance or set of circumstances directly resulting from the ownership, operation and/or maintenance of the subject multiple dwelling which renders the continued operation or maintenance of the subject multiple dwelling in a good, safe and efficient condition unduly difficult or economically unreasonable. Specifically excluded are such circumstances or set of circumstances that are directly or indirectly the result of the act or omission of the landlord in a manner other than that of a reasonably prudent business person.
Means and includes any building or group of several buildings
upon a single lot, tract, or parcel of land or upon several lots,
tracts, or parcels which are adjacent to each other and in the same
ownership and which such buildings or group of several buildings contain
three or more dwelling units.
A tenant to whom this article otherwise applies who is further
all of the following:
A person who has made his or her permanent residence and domicile
for at least one year in an apartment covered by this article and
who has no other residence; and
A person who is residing and domiciles as aforesaid in such
a household the total income of which, including the incomes of all
other persons in that household and including all income from sources
either earned or unearned and whether taxable or nontaxable, does
not exceed the average per capita annual income for Bergen County
residents most recently determined and published by the New Jersey
Department of Community Affairs; and
A person who is at least 62 years of age; or a person of at
least 55 years of age and who is the surviving spouse of a formerly
qualified senior citizen tenant.
Any and all charges made by the landlord to the tenant in
consideration of the tenant's occupancy of the dwelling unit. "Rent"
includes parking charges, garage charges or any other charges relating
to any automobile owned or maintained or used by a tenant. "Rent"
further includes any charges for any privileges, services, furnishings,
furniture, equipment and facilities in common areas in connection
with the use or occupancy of such portion of the property.
The board created by this article for the purpose of hearing
appeals and complaints from owners and tenants dealing with rents
and issuing rulings on the same.
The provision of light, heat, hot water, maintenance, painting,
elevator service, air conditioning, storm windows, screens, superintendent
service and any other benefit, privilege or facility connected with
the use or occupancy of any dwelling unit.
A.
Should any dwelling unit referred to herein become vacant, the terms
and conditions imposed hereby shall no longer apply to that dwelling
unit until such time as that unit has been relet, at which time the
terms and conditions hereof shall apply to the new rental established
during the period of decontrol for that dwelling unit.
B.
For the purposes of this section, "vacancy" shall be deemed to have
occurred upon any one of the following:
(1)
The tenant voluntarily vacates the dwelling unit, provided that the landlord shall file with the Board a noncoercion certification as required by § 212-12D(2) below;
(2)
The tenant is lawfully dispossessed or evicted from the dwelling
unit;
(3)
The tenant dies and is not survived by a member of his or her family
who lawfully occupied the premises with him or her who assumes the
obligation of tenancy.
C.
Specifically excluded from the vacancy decontrol provisions of this
article are the following:
(1)
A dwelling unit from which the tenant has been constructively evicted
where such eviction is determined to have been as the result of the
wrongful act of the landlord whether or not the last tenant returns
to the dwelling unit;
(2)
A dwelling unit which the tenant is required to vacate because the
same has been rendered uninhabitable, whether or not as a result of
the wrongful act of the landlord, but only upon the return by the
last tenant to the dwelling unit within a reasonable period of time;
(3)
A dwelling unit the tenant of which dies and is survived by a member
of his or her family who lawfully occupied the premises with him or
her, whether a cotenant or not, and who assumes the obligation of
the tenancy;
(4)
A dwelling unit rendered vacant due to the refusal or failure of the landlord to either offer or sign a new lease with a tenant who is receiving rent subsidies through an H.U.D. or other similar program as administered by the Bergen County Housing Authority or other governmental agency for such rent subsidies, for other than just cause. The refusal or failure by the landlord, without just cause, to offer or sign a new lease to a subsidized tenant, or to contract with the appropriate governmental agency administering such rent subsidies, is hereby deemed an unconscionable and oppressive practice, and any vacancy resulting therefrom shall be considered "coerced" within the terms of § 212-12 hereof;
D.
In order for a dwelling unit to qualify for a vacancy decontrol rent increase as permitted by this § 212-12, the landlord shall first be required to file with the Rent Board either of the following:
(1)
In the case of any vacancy claimed under any of the three subsections of § 212-12B, a written statement, signed by the landlord, certifying to the Board that the vacancy qualifies for decontrol under this section and the reasons therefor.
(2)
Further, in the case of any vacancy claimed under § 212-12B(1), the landlord shall also file with the Rent Board a written statement, signed by the vacating tenant, certifying to the Board that the landlord has not, in any way, harassed or pressured the tenant into vacating the dwelling unit and that the vacation of such unit was a voluntary act on the part of the tenant. If the tenant has refused to sign such certification, the landlord shall have the right, on at least seven days' written notice to the tenant, to request a hearing on such issue before the Rent Board. At such hearing, the landlord shall have the burden of proving that the refusal of the tenant was unwarranted and that there was in fact no coercion exerted by the landlord upon the vacating tenant.
E.
Upon reletting of any decontrolled apartment hereafter, the landlord
shall file a statement with the Rent Board certifying to the Board
all of the following:
F.
Nothing in this section shall be construed to prohibit a vacancy
decontrol increase each and every time an apartment becomes vacant
and qualifies hereunder, provided that the requirements of this section
are met.
A.
No owner or landlord shall increase the rental of any dwelling unit
more than once in any twelve-month period, and the "accumulated fair
rental," as defined above, may be increased only after said rental
has been in effect for a period of 12 consecutive months. Any reduction
in or cessation of the privileges, services, furnishings, furniture,
equipment or improvements provided to the tenant as part of the rental
unit without a commensurate reduction in the rent shall be deemed
to be an increase in the rent, and the value thereof shall be calculated
as though within the aforesaid allowable increase.
B.
Except as herein specifically provided in § 212-16A, accumulated fair rental may be increased only a maximum of 5% in the twelve-month period hereinbefore established or, as to a "qualified senior citizen tenant" as defined in § 212-11 hereof and who has been certified as provided for in § 212-22A hereof, a maximum of 2 1/2% in the twelve-month period hereinbefore established. In either case, such increase shall be deemed to include and abide any and all tax increases, all increased costs of fuel and any and all other costs of maintenance but not for capital improvements [for which an adjustment may be made as provided for in § 212-16A(1) hereof].
C.
The accumulated fair rental shall be applied to each dwelling unit
rather than to the tenant thereof. It shall be unlawful for any person
to demand or receive any rent in excess of the maximum rent allowed
under this article or to demand possession of the space to evict a
tenant because of failure of a tenant to pay rent in excess of the
established maximum rent.
D.
Should any owner or landlord fail or have failed to increase the rental of any dwelling unit as provided in § 212-13 or 212-16 hereof, or have been barred from any such increase under the provision of this article, then the accumulated fair rental shall remain unchanged and the owner or landlord shall seek no increases from the tenant or tenants.
A.
There is hereby created a Rent Board which shall consist of six members,
as follows: two each representing tenants, landlords and homeowner
residents of the Borough of Hasbrouck Heights. At least one member
of each membership classification must be present at each meeting
of the Board during which appeals are heard or decisions rendered.
The Board shall hear appeals from all aggrieved parties or parties
from seeking rulings under this article.
B.
The Board members shall be appointed by the Mayor with the confirmation
of the Borough Council to serve for one year or until a successor
is appointed. Members shall serve without compensation.
C.
The Board may, if it chooses, prepare bylaws which will become effective
after approval by the Mayor and Council; otherwise, its rules or order
shall be determined by the Chair.
D.
The Board may call upon the Borough Attorney for legal advice and
opinions as, from time to time, it deems necessary.
E.
The Board shall have the powers that are reasonably necessary to
carry out its duties and functions under this article.
F.
The Rent Board shall hear and decide applications of landlords for
additional rental as herein provided. The owner or landlord shall
give to the tenants of any affected dwelling unit notice, in writing,
of the application to the Rent Board for relief hereunder, which notice
shall contain a statement of that relief sought and shall state the
date upon which hearing on the application is to be held. Such notice
shall be served upon the tenants either personally or by certified
mail, return receipt requested, at least 20 days before the date of
the hearing; the owner or landlord shall give proof satisfactory to
the Rent Board that service of notice has been given as required.
Such application shall be made in a manner and upon such forms as
the Board may reasonably require.
G.
The Rent Board shall hear and decide applications from tenants for reduced rental as herein provided and shall hear and decide appeals of tenants from any denial by the Borough Clerk of his other application for certification as a qualified senior tenant pursuant to § 212-23 of this article. Such application shall be made upon notice to the landlord as required of the landlord in § 212-15F hereof.
H.
The Rent Board shall have the power to accept into evidence all such
matters as it deems pertinent to the application and may waive strict
rules of evidence when it deems just and appropriate to do so. Notices
of the Rent Board's action shall be sent to the applicant and filed
with the Borough Clerk for inspection by the public.
I.
The Rent Board may refer cases involving violations or noncompliance
with the provisions of this article to the Municipal Prosecutor for
such action as he or she deems warranted.
J.
The action of the Board shall be deemed to be final. Appeals therefrom
shall be to the courts as provided by its rules and law.
K.
The Borough Clerk shall serve as Clerk of the Rent Board and shall
accept service on its behalf.
A.
On notice to each tenant to be affected thereby, as required by §§ 212-15F and 212-16B, an owner or landlord may make application to the Rent Board for the following monthly rental increases beyond those permitted herein on the following grounds:
(1)
Capital expenditures.
(a)
Increases shall be granted for any major expense actually incurred by the landlord which is 1) claimed by the landlord as a capital expenditure under the Internal Revenue Code, but 2) which is not on account of the replacement or repair of a component, furnishing, fixture of the like of which was already existing on the premises unless, and to the extent also determined, the Board determines that such repair or replacement of a component resulting in a material improvement in the living conditions of every tenant against whom the increase is sought. Said increase shall be apportioned among the units affected based upon the total number of rooms and assessed monthly over the length of time allowed by the Internal Revenue Code for depreciating said capital expenditure on a straight-line depreciation basis. Any such increase shall commence only upon the payment in full for the expense by the landlord and its actual completion or installation. A capital expenditure increase shall not be considered as rent for the purpose of rental increases under § 212-13 of this article.
(2)
Extreme hardship.
(a)
In the event that a landlord fails to receive a fair net operating
income, it may apply to the Rent Leveling Board for a hardship rent
increase. A landlord may not apply for a hardship adjustment more
than once in any twenty-four-month period unless a further application
within that period is based upon circumstances that were unforeseeable
at the time of the prior application.
(b)
For purposes of a Rent Leveling Board hearing, "net operating
income" means the amount by which annual income exceeds annual operating
expenses; "annual income" means the legal monthly, weekly or other
periodic rent for all units in the complex on the date the petition
is filed, computed on an annual basis, together with any other income
earned from the operation of the building during the test year, provided
that where a unit has seasonal, alternate or other varying rents,
appropriate adjustment shall be made by the agency, and in any case
where a rental unit is occupied in whole or in part rent-free, the
full rental value shall be considered the legal rent; "annual operating
expenses" means all real estate taxes and operating costs necessary
to the operation and maintenance of the building, but excluding depreciation,
mortgage interest and amortization, allocated to the test year; and
"test year" means the most recent full calendar or fiscal year or
any 12 consecutive months ending no earlier than 30 days before the
date the application is filed. The net operating income for the building
shall be deemed unfair if it is less than 40% of the annual income
of the building. The landlord shall be entitled to a rent increase
sufficient to produce a fair net operating income of 40.0% of gross
annual income.
(c)
The Rent Leveling Board may once a year submit to the Council
any recommendation it deems appropriate for amendments of the fair
net operating income ratio. The Board may recommend that the ratio
be raised or lowered where the Board determines that such adjustment
is necessary to achieve a fair balance between the landlord's needs
for a just and reasonable return and the tenant's needs for reasonable
rents. The Board shall give its reasons for its recommendations.
(d)
In computing reasonable and necessary operating expenses under
this chapter, the following limitations shall apply in all cases:
[1]
Taxes shall be limited to the amount actually paid, including
those in escrow for appeal.
[2]
Repairs and maintenance shall be limited to arm's-length transactions
and shall be reasonable and necessary. Cost of service contracts shall
be prorated over the period covered. Painting costs shall be prorated
over the number of years of the actual painting cycle in the building,
but in no event shall painting be prorated over a period of less than
three years for the interior dwelling units or less than five years
for the exterior and common areas.
[3]
Purchase of new equipment shall be reflected and prorated over
the useful life of the item.
[4]
Legal and auditing expenses shall be limited to reasonable and
necessary costs of the operation of the property. No legal expenses
or audit expenses shall be allowed as a deduction that do not directly
result from the landlord-tenant relationship. A landlord may not deduct
expenses incurred in litigating any declaratory or injunctive relief
as to his rights under any state, local or federal law. All costs
shall be itemized on the application.
[5]
Management fees 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 if provided
to the manager. In no event shall management fees exceed 5% of the
first $50,000 of gross maximized income, including commercial and
professional space income; 4 1/2% of the next $25,000; 4% of
the next $100,000; 3 1/2% of the next $100,000; and 3% of any
amount over $275,000.
[6]
Salaries not included in management fees shall be limited to
actual services performed and shall be limited to amounts for similar
positions in the area, including rental value, if included in income,
and expenses and wages and benefits paid.
[7]
Advertising shall be limited to actual costs that are reasonable
to insure occupancy only. If no actual vacancies exist or can be reasonably
anticipated with the next two months, advertising expenses shall not
be allowed.
[8]
Utilities, including, but not limited to, gas, electric, water
and oil, shall be limited to those derived from arm's-length transactions,
and the landlord shall demonstrate that all reasonable efforts to
conserve energy and fuels have been used.
[9]
Insurance premiums shall be limited to those derived from arms'-length
transactions and shall be prorated over the term of the policies and
shall not include the landlord's life, medical or other personal policies.
[10]
No penalties, fines, depreciation, interest, mortgage,
amortization or mortgage service fees for any reason shall be allowed.
[11]
The history of the income and expenses shall be
consistent with the application or fully documented as to any changes.
Where an owner has, for at least two years, spent more than 60% for
reasonable and necessary operating expenses, the Rent Leveling Board
may allow the increase over the same number of years.
(e)
An application for hardship relief shall include the amount
of increase and percentage of increase requested, together with all
facts and figures of at least five years of income and expenses, if
available, all of which shall be duly certified under oath by the
landlord or his agent. The landlord shall also provide, by way of
supporting documentations, operating statements, income tax returns
and, to the extent available, audited statements, compilations of
cost and the expense of the complex. At the time of the application,
the landlord shall notify all tenants affected, in writing, by regular
mail or by personal service, that an application is being made and
is available to any tenants requesting same. The owner shall also
make available to the Rent Leveling Board all records and books supporting
the application. Any interested tenants or group of tenants or association
of tenants who wish to be heard at the public meeting may notify the
Rent Leveling Board of their intention, and the Rent Leveling Board
shall permit that tenant, group of tenants or association of tenants
to be parties to the hearing. This provision shall be liberally construed
as to afford ample opportunity for all interested parties to present
their view before the Rent Leveling Board.
(f)
If, after a full public hearing, the Rent Leveling Board shall
determine that the landlord's reasonable and necessary operating expenses,
computed in accordance with the provisions of this chapter, exceed
60% of the income or will exceed 60% in the immediately foreseeable
future, the Rent Leveling Board shall permit a rental increase sufficient
to establish or maintain the 60% ratio to fair net operating income.
Any such hardship increase granted shall be prorated among all dwelling
units within the complex in the proportion that the total square feet
of dwelling area contained in each such dwelling unit bears to the
total square feet of dwelling area contained in the complex. Such
increase shall be paid by the tenants to the landlord in a number
of installments equal to the number of months for which the landlord
has been granted a hardship increase but beginning on the monthly
rental due date no sooner than 90 days following notification of the
grant of the application to the tenant.
(g)
In the event said public hearing is adjourned or is postponed,
the party requesting said adjournment or postponement will be required
to renotify all affected parties, by personal service or by regular
mail, of the date of the new hearing. Should the public hearing be
continued or carried beyond the original hearing date, no further
notice will be required if the Rent Leveling Board announces a subsequent
hearing date at that time. If the subsequent hearing date is not so
announced, further notice to all parties will be required, in writing,
by personal service or by regular mail, of the new hearing date.
B.
Notice of applications under this section shall be as required in § 212-15F hereof, and in addition thereto, the applicant shall post a notice of the same in the lobby of the multiple dwelling, or if no lobby exists, then in the landlord's rental office located at or near the premises.
C.
In the event that the Rent Board finds that the applicant owner or landlord has failed to pay any of its real property taxes then levied and due upon the subject building or apartment complex or finds that the applicant owner or landlord has failed to perform any of its obligations under §§ 212-17 and 212-18 hereof, the Rent Board shall deny any application under § 212-16 hereof.
Commencing on the date upon which this article becomes effective,
the landlord shall no longer seek a further separate tax surcharge
from the tenant because of any increase in municipal property taxes
levied upon the demised premises.
A landlord shall only be entitled to the rental increases provided
herein only if it maintains the premises in accordance with this article
and the other ordinances of the Borough providing for the construction,
maintenance or zoning of said property, with no decrease of any services,
and only if it has fully complied with all of the terms and conditions
of this article.
A.
During the term of this article, rental decreases may be granted by the Rent Board for any decrease in housing space, services, furniture, furnishings or equipment. Such rent decreases may be granted upon petition of a tenant or a group of tenants to the Rent Board and upon notice to the landlord pursuant to § 212-15G hereof after a hearing in accordance with § 212-15F.
B.
A decrease in services to justify a rent decrease under this section
shall include any cessation or inadequate provision of the vital services
listed herein, but only where it is the responsibility of the landlord
to provide those services. For the following decreases in services,
a petitioner's or petitioners' rent may be decreased in a sum not
exceeding the following percentages of the authorized base rent chargeable
to said petitioner, prorated on a daily basis, during the period of
said decrease in services:
(1)
No heat (or insufficient heat according to municipal code requirements):
75%.
(2)
No water: 50%.
(3)
No hot water: 40%.
(4)
Nonoperable electric fixtures such as to constitute a dangerous condition
or threat to the health and safety to the tenant (per fixture): 15%.
(5)
Faulty plumbing (defined as inoperable fixtures, i.e., tub, sink,
toilets) per fixture: 15%.
(6)
Upon finding that the housing unit is totally uninhabitable: 100%.
(7)
Any tenant covered by this article who, after the adoption of this provision, is offered and enters into a new lease or a renewal of an existing lease without being notified, in writing, of the overnight parking prohibition of this Borough as required by § 212-9 of the Borough Code: 20% over the term of the lease (for the purposes hereof, the landlord's inability to produce the required duly acknowledged receipt of such notice shall constitute prima facie evidence of the failure to give such notice).
A.
Petitions for rent decreases shall contain the petitioner's name,
rental unit and landlord involved, type and duration of alleged service
deficiency, date, time and form of notice of deficiency provided to
the landlord, and the authorized base monthly rental during the time
of deficiency.
B.
As soon as reasonably possible after the receipt of the petition,
the Board shall affix thereon a notice and date for hearing of said
petition before the Board; the applicant shall thereupon give notice
of said hearing by mailing copy of the notice and petition to the
landlord and petitioner.
C.
At said hearing, the Board shall entertain such written and oral
evidence presented by the petitioner, including, if available, any
written or oral reports from municipal code officials or others.
D.
All findings and conclusions reached by the Board shall be final.
A summary of such findings shall be served upon the landlord and the
tenant within 45 days of the date of the hearing.
There may be no waiver or avoidance of the provisions of this
article by private agreement, directly or indirectly.
Every owner of a multiple dwelling shall register the same with
the Borough Clerk within 30 days of the adoption of this article.
Such registration shall include the name of every tenant, the respective
designation of that tenant's dwelling unit, the term of each respective
lease, the rent for that term and a description of the respective
demised area sufficient to indicate the basis for any proration of
rent among all tenants of the multiple dwelling.
A.
A tenant seeking status as a qualified senior tenant hereunder shall
make application to the Borough Clerk. Such application shall be submitted,
certified true or under oath, on a form prepared and provided by the
Borough Clerk.
B.
Such application shall be supplemented with true copies of:
(1)
Generally accepted proof of identification;
(2)
Generally accepted proof of age;
(3)
Copies of last prior year's income tax returns, state and federal,
if filed; and
(4)
Generally accepted documents detailing all household income and benefits
from all sources, earned and unearned, whether or not taxable, for
last prior year.
C.
Upon review of the application and supporting documents submitted,
the Borough Clerk shall issue a written determination which the tenant
shall transmit to the landlord.
The owner of housing space or a dwelling being rented for the
first time shall not be restricted in the initial rent charged. Any
subsequent rental increase, however, shall be subject to the provisions
of this article.
A.
A willful violation of or noncompliance with any provisions of this
article, including but not limited to the willful filing with the
Rent Board of any material misstatement of fact, shall be punishable
by a fine of not more than $1,000, or imprisonment for not more than
90 days. A violation affecting more than one leasehold shall be considered
a separate violation as to each leasehold.
B.
A willful noncompliance with a determination, decision or order of
the Rent Board shall be punishable by a fine of not more than $1,000
or imprisonment for not more than 90 days.
[1]
Editor's Note: Former § 212-26, Duration, was repealed 4-25-2023 by Ord. No. 2528.
This article, being necessary for the welfare of the Borough
and its inhabitants, shall be liberally construed to effectuate the
purposes thereof.
