[HISTORY: Adopted by the Council of the Township
of Montclair 4-19-2022 by Ord. No. O-22-05[1]. Amendments noted where applicable.]
[1]
Editor's Note: This ordinance also repealed former Ch. 257,
Rent Regulation, adopted 4-7-2020 by Ord. No. O-20-05
A.
Approximately 40% of the residents of the Township of Montclair live
in rental housing units ranging from single-family houses to multiple
dwellings of more than 100 apartments; and
B.
The rapid upsurge in the demand in the housing market for rental
apartments has resulted in a substantial increase in rents, causing
and threatening to cause the dislocation of tenants unable to adjust
to the higher rents; and
C.
The governing body finds that intervention in the market is necessary
to allow for a more gradual and orderly transition to higher rent
levels without disruption of existing tenants, to maintain a supply
of relatively affordable housing, and to moderate rental increases
after the effective date of this chapter.
A.
Applicability. The terms of this chapter apply to individual dwelling
units within a building rather than to an individual tenant occupying
a dwelling unit. An agreement for occupancy of the dwelling unit shall
not circumvent the application of this chapter by titling the agreement
as other than a lease, such as, but not limited to a use and occupancy
agreement.
B.
Exceptions. This chapter shall not apply to:
(1)
Units in buildings in which the owner resides that contain three
or fewer residential units.
(2)
Units for which the amount of rent is determined as a function of
household income by a government program.
(3)
Motels, hotels, and similar type buildings intended for transient
use, floor space used strictly for commercial purposes in any type
building, including state-licensed rooming houses.
(4)
Dwelling units rented for the first time after the adoption of this
chapter are exempt, and the initial rent may be determined by the
landlord, but all subsequent rents shall be subject to the provisions
of this chapter.
(5)
Dwelling units exempted by state or federal law.
(6)
Housing provided for students by a school, college, or similar institution
which owns and/or controls that housing.
(7)
Single-family homes, single condominiums units, and single co-operative
units.
C.
Establishment of base rent. All rents established by landlords and
tenants as of the effective date of this chapter, and any subsequent
permitted increase which by its terms becomes part of the base rent,
shall represent the base rent from which permitted increases are calculated.
As used in this chapter, the following terms shall have the
meanings indicated:
A dwelling unit is fit for habitation as defined by the statutes,
codes and ordinances in full force and effect in the Township, and
is occupied, or unoccupied and being offered for rent.
The rent is as defined in the lease between the landlord
and tenant that was charged as of the effective date of this chapter
except as follows:
For any dwelling unit where the landlord collected an increase
in rent from an existing tenant on or after May 1, 2020, the base
rent shall be the rent in effect as of May 1, 2020;
For any dwelling unit where the landlord provided notice of
a rent increase to an existing tenant but did not collect such increase
on or after May 1, 2020, or did not otherwise seek or collect any
increase from an existing tenant on or after May 1, 2020, the base
rent shall be the rent in effect as of May 1, 2020; and
For any dwelling unit that became vacant since May 1, 2020,
the base rent shall be the rent in effect as of the effective date
of this chapter.
The Rent Control Board.
Any building or structure rented or offered for rent to one
or more tenants or family units. Furnished rooms are subject to the
terms of this chapter notwithstanding the fact that furniture is provided
by the landlord and/or rent is paid on a weekly or biweekly basis.
Any unit used for residential rental purposes.
That portion of a dwelling rented or offered for rent for living
and dwelling purposes to one individual 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.
Includes a garage, carport or parking space, which garage, carport,
or parking space is included in the agreement for the rental of housing
space.
That the landlord recovered possession of a housing space
or dwelling for one of the reasons and in accord with the procedures
set forth in N.J.S.A. 2A:18-61.1, as amended.
As used in this chapter, the person who owns or represents
the ownership of any building, structure or complex of buildings or
structures in which there is rented or offered for rent housing space
for living or dwelling purposes.
The amount of total rentable space applicable to any given
housing space, measured either in terms of rooms or square footage.
Maintenance costs include, but are not limited to, real estate
taxes, utility expenses, insurance costs, management fees, expenses
for repairs, upkeep and maintenance respecting a dwelling unit, but
shall not include principal or interest payments on any blanket encumbrance
or other mortgage or encumbrance.
An addition to the dwelling or housing space units that inures
to the benefit of the tenant, that was not previously provided or
required to be provided by law or lease, that materially adds to the
value of the dwelling or housing space and prolongs its life, and
that must not be upkeep, maintenance, repairs, rehabilitation or replacement
of items or services.
An addition to the dwelling or housing space units that inures
to the benefit of the tenant, that was not previously provided or
required to be provided by law or lease, that materially adds to the
value of the dwelling or housing space and prolongs its life, that
includes a substantial increase in services, furniture, furnishings
or equipment provided to tenants since the date of the most recent
rent increase under any section of this chapter, and that must not
be upkeep, maintenance, repairs, rehabilitation or replacement of
items or services.
The annual maintenance costs divided by 12.
All tenants, including monthly tenants, who do not have a
written lease.
The consideration demanded or received in connection with
the use or occupancy of housing space, including, but not limited
to, parking, pets, facilities, privilege services, equipment, furnishings,
or any charge, no matter how set forth, paid by the tenant in connection
with the housing space.
The notice forwarded by the landlord to the tenant, or by
the tenant to the landlord, by letter or in any other form, setting
forth the proposed amount of rent increase, rent decrease or other
rent adjustment. Each such notice shall state in detail the reasons
justifying or requiring the rent increase, rent decrease or other
rent adjustment.
The statement which the landlord shall be required to sign
and deliver to the tenant, when requested by the tenant, and vice
versa, describing the housing space rented, the related services and
equipment involved, whether such include the use of the basement,
garage, clotheslines, washing utilities, heat, hot water, garbage
removal, repairs, maintenance and the like, and the base rent and
charge.
Resale of a dwelling unit means any sale subsequent to the
original sale thereof.
The Rent Control Board Officer.
The provision of light, heat, hot water, maintenance, painting,
elevator service, air conditioning, storm windows, screens, superintendent
service and any other benefit, privilege or facility connected with
the use or occupancy of any dwelling or housing space.
Substantial compliance means that the housing space and dwelling
units are free from all heat, hot-water, elevator and all health,
safety, and fire hazards as well as 90% qualitatively free of all
other violations of the Montclair Property Maintenance Code and the
Regulations for Construction and Maintenance of Hotels and Multiple
Dwellings promulgated by the State Department of Community Affairs,
N.J.A.C. 5:10-1.1 et seq., and other applicable ordinances of the
Township of Montclair.
A structure which is completely vacant and unfit for human
habitation as defined by the statutes, codes and ordinances in full
force and effect in the State of New Jersey, County of Essex, and
Township of Montclair.
A.
Established. A Rent Control Board (the "Board") is established in
the Township of Montclair.
B.
Composition; terms.
(1)
The Board shall consist of seven members who shall be appointed by
the governing body by resolution. The members shall be comprised of
three tenants and one homeowner who is neither a landlord or tenant,
and three landlords who shall reside or own property covered by this
chapter. For reasons of continuity and in the best interests of the
public, the terms of the first members appointed pursuant to this
subsection shall be staggered terms of one-, two-, three-, and four-year
term appointments, with three members receiving four-year terms. Thereafter
the term of office of the members of the Board shall be for four years
each.
(2)
In addition to the seven regular members, the governing body shall
appoint two alternate members to the Board. The alternate members
shall be one landlord who resides in or owns property covered by this
chapter and one tenant, who resides in Montclair and does not own
property covered by this chapter. The term of an alternate member
shall be two years. An alternate member shall be entitled to sit with,
and participate as a member, in any meeting of or hearing before the
Board. An alternate member who has attended the full hearing or hearings
on a specific matter may vote upon any determination made during the
absence or disqualification of any regular member.
(3)
Members of the Board shall serve without compensation.
C.
Disqualification of member. No member or alternate member of the
Board shall be permitted to act on any matter in which that individual
has, either directly or indirectly, any personal or financial interest.
D.
Powers of Board. The Board is hereby granted and shall have and exercise
all the powers necessary and appropriate to carry out and execute
the purposes of this chapter, including, but not limited to, the following:
(1)
To issue and promulgate such rules and regulations as it deems necessary
to implement the purpose of this chapter, including, but not limited
to, the use of subpoenas, which rules and regulations shall have the
force of law until revised, repealed or amended, providing that such
rules are filed with the Township Clerk.
(2)
To supply information and assistance to landlords and tenants to
help them comply with the provisions of this chapter.
(3)
To hold hearings and adjudicate applications from landlords for major
capital improvement or major additional service surcharges and for
hardship rent increases, as herein provided.
(4)
To hold hearings and adjudicate applications from tenants for rent
reductions based on a decline in services, as herein provided.
(5)
To hear and adjudicate appeals from determinations of the Rent Control
Officer.
(6)
To approve and accept a settlement or other agreement on the subject
matter of a dispute between a landlord and tenant.
(7)
To require a landlord to produce for examination his/her books, records,
tax returns, balance sheets, profit and loss statements and such other
records, as appropriate, as the Board may require in connection with
any application and related hearing, proceeding or purpose, as set
forth herein.
(8)
Upon an application by a landlord or tenant or upon its own motion,
to set a date for a hearing, consider proofs and grant, deny, modify,
or otherwise adjust all rentals, by increasing or decreasing same,
and the Board may make such determinations as to conditions, services,
equipment, terms and related matters pertaining to rentals and controlled
premises as may be warranted within the intent and purview of this
chapter and applicable state laws.
E.
Meetings of Rent Control Board.
(1)
The Rent Control Board shall have three regularly scheduled meetings
per year. The first scheduled meeting shall be the organizational
meeting. The first organizational meeting of the Rent Control Board
shall be held on a Wednesday evening at 7:00 p.m. and shall be no
more than 45 days or less than 30 days after the enactment of the
ordinance.
(2)
At its organizational meeting, the Board shall elect a Chairman and
a Vice Chairman. The Chairman shall preside over all meetings of the
Board and exercise all of the powers of the Chairman; provided, however,
that in the absence, disqualification or abstention by the Chairman,
the Vice Chairman shall have all of the powers of the Chairman.
(3)
The remaining two regularly scheduled annual meetings shall be held
on the second Wednesday at 7:00 p.m. in May, and the second Wednesday
at 7:00 p.m. in September. If the first organizational meeting is
held in the month of May or September in the initial year of the enactment
of the ordinance, the Board, at its discretion, shall only be required
to have two regular meetings. At these meetings, the Board shall:
(a)
Issue and promulgate such rules and regulations, as it deems
necessary, to implement the purposes of this chapter which rules and
regulations shall be promptly filed with the Township Clerk.
(b)
Review, at least once annually, any additions, amendments, or
recommendations regarding the ordinance to the Township Council, as
it deems necessary and appropriate.
(c)
Consider such matters that the Board deems necessary and appropriate
to carry out its responsibilities.
(4)
All other meetings of the Board shall be in order to hold hearings
on any appeals from the Rent Control Officer, and to conduct hearings
for major capital improvement and major additional service surcharge
applications, hardship rent increase applications, and decline in
service application. Such meetings, if any, shall be held on the second
Wednesday of each month at 7:00 p.m., or on such date and times as
mutually agreed by all parties, in accord with the notice provisions
established under this chapter.
(5)
The Board may schedule any other meetings on the second Wednesday
of the month, at 7:00 p.m., upon proper notification as required by
law, as it deems necessary to carry out its responsibilities.
F.
Quorums. A quorum for hearing shall consist of four members or alternate
members, and a majority of those present shall be authorized to issue
orders pursuant to and consistent with the powers and functions of
the Board.
A.
Rent Control Officer; qualifications and duties.
(1)
Position created. There is hereby created the position of Rent Control
Officer in the Department of Revenue and Finance, to be appointed
by the Manager and compensated as provided in the then-current salary
ordinance.
(2)
Qualifications. The Rent Control Officer shall be appointed by the
Manager.
(3)
Duties. The duties of the Rent Control Officer shall be as follows:
(a)
To obtain, keep and maintain all relevant records and other
data and information, all of which shall be available for inspection
and copying upon request.
(b)
To supply information and assistance to landlords and tenants
and to bring together tenants and landlords in formal conferences
and suggest resolutions of conflicts between them in order to assist
them in complying with the provisions of this chapter.
(c)
To ensure compliance by the landlord and tenants with the provisions
of this chapter.
(d)
To remedy violations of this chapter and bring appropriate legal
charges as provided by this chapter, when appropriate.
(e)
To accept, process, investigate and determine complaints from
tenants and landlords regarding calculations of annual rentals and
increases and/or vacancy decontrol allowances.
(f)
To collect and maintain accurate rent registration statements
in accord with this chapter.
(g)
To prepare forms as appropriate for the filing of complaints
to be heard before the Rent Control Officer.
(h)
To attend all meetings of the Rent Control Board.
(i)
To perform such other duties as the Rent Control Board may specifically
direct and as allowed by this chapter.
A.
Upon receipt of a complaint, upon such forms as provided, if any, and filed with the Rent Control Officer regarding its responsibility under § 257-5 to hear and render determinations thereunder, the Rent Control Officer shall conduct meetings with landlords and tenants, upon 20 days' notice to the affected parties, and request any additional documents, as it deems necessary, to render a determination.
B.
The determination of the Rent Control Officer shall be in writing
no later than 20 days from receipt of any and all documents requested
by the Rent Control Officer. The determination shall be provided to
all parties by the Rent Control Officer by regular and certified mail,
return receipt requested.
C.
Appeal from determination of Rent Control Officer to the Rent Control
Board.
(1)
Either the landlord or tenant may appeal the decision of the Rent
Control Officer to the Rent Control Board. The appeal shall be filed
with the Rent Control Officer no later than 20 days from the date
of mailing of the determination by the Rent Control Officer. The appeal
shall set forth in detail the grounds for the appeal, upon forms provided
by the Rent Control Officer and/or Board, if any, and the required
fee, if any.
(2)
Simultaneously with filing the appeal, the appealing party shall
serve notice on the nonappealing party, by regular and certified mail,
informing the nonappealing party that the appeal and all supporting
documents are available for inspection at the Rent Control Office,
and shall provide proof of service with the Rent Control Officer.
(3)
Upon receipt of the completed appeal, the Rent Control Officer shall
promptly transmit the notice of appeal and all documentation to the
Rent Control Board and secure a date for the appeal before the Rent
Control Board. Such date shall be transmitted to the affected landlord
and tenants by the Rent Control Officer by regular and certified mail.
(4)
The appeal shall be placed upon the Rent Control Board agenda at
the earliest convenient date for determination in accord with the
Rent Control Board meeting schedule.
(5)
During the pendency of the appeal, the rent for the subject unit
shall be the rent as established by the Rent Control Officer.
A.
Retention of professional services. In the event the Rent Control
Board determines that a landlord's or tenant's application
for relief contains calculations, or any other issues deemed by the
Board to be of a complex nature, then the Board, in the interest of
fairness and efficiency, may determine that the services of professional
experts are required to assist the Board in evaluating and processing
the application.
B.
Estimate of fee. Should the Board determine that professional assistance
is required, then the Board shall forthwith send a copy of the application
and supporting documents to any professional expert retained to assist
the Board in evaluating and processing the application. Within five
days of receipt thereof, the professional expert shall submit to the
Board and to the applicant an estimate of funds necessary to undertake
the professional services to be rendered.
C.
Escrow funds. The applicant shall forthwith deposit such funds in
an escrow account maintained by the Township. The professional expert
shall submit vouchers for all reasonable and necessary fees for the
professional services rendered, which fees shall be paid from the
escrow account in the manner prescribed by N.J.S.A. 40A:5-16 through
40A:5-18 and the ordinances of the Township. The professional expert,
at the time of submission of any such voucher, shall forward a copy
of same to the applicant.
D.
Appeal of fee. In the event that the applicant questions the reasonableness
of any such voucher, the applicant may make written protest of such
voucher to the Board. In no event shall the Board authorize the payment
of any voucher submitted pursuant to this section sooner than 10 days
after its submission. Any of the aforesaid moneys which are left in
the escrow account upon completion of the application shall be returned
to the applicant after the Board reaches its decision. Should additional
funds be required after the original funds are exhausted, such funds
as shall be necessary in the judgment of the Board shall be paid by
the applicant to the Township and placed in the escrow account.
E.
Action upon application. The Board shall take no formal action on
any application unless and until all escrow funds have been deposited
with the Township, and any time limitations set forth in this chapter
shall be extended until all such escrow funds are deposited with the
Township.
A.
Opportunity to be heard. Upon receipt of a complaint, upon such forms as provided, if any, and fee, if any, to hear and render determinations under hardship under § 257-9, capital improvement under § 257-10, decline in services thereunder, and under § 257-6, appeals from determinations of the Rent Control Officer, all interested persons shall be given the opportunity to be heard, with or without counsel, except that the Board, in its discretion, may limit repetitious testimony or ask that a spokesperson for the tenants be appointed. A tenant and/or tenant association may elect to name a spokesperson to act in its behalf. The Board shall base its decision upon the record of information provided to and considered by the Rent Control Officer in determining whether the decision of the Rent Control Officer was inconsistent with this chapter. The Board shall have the discretion to request the submission of additional information from either the landlord or the tenant if that information is required to resolve the appeal.
B.
Decisions by the Board/service. The Board shall be required to render
its determinations, in writing, within 30 days of the final hearing
date, which written decision shall be provided to the landlord immediately
by regular and certified mail. Upon receipt, the landlord shall post
a notice in a conspicuous place in the building stating that the Board
has rendered a written decision, which decision is available at the
Rent Control Office. The landlord shall further transmit the decision
to all affected tenants by regular and certified mail within five
days of receipt of the decision. Simultaneously therewith, the landlord
shall provide the Board with proof of service upon the tenants by
regular and certified mail.
C.
Additional hearings. If any additional hearing, after the initial
hearing, is necessary, the Board shall so notify the landlord within
20 days of the initial hearing. A copy of the notice of hearing shall
be posted conspicuously in the lobby of the building. The landlord
shall serve notice of the hearing date to the tenant, by regular and
certified mail, return receipt requested, at least 20 days in advance
of the hearing.
D.
Appeals. Either the landlord or a tenant may appeal the decision
of the Rent Control Board. All decisions of the Board are final. Any
landlord or tenant wishing to appeal the decisions of the Board may
do so in the Superior Court of New Jersey pursuant to its rules and
procedures. An appeal to the Superior Court of New Jersey from a determination
of the Rent Control Board are required to be filed with the Court
within 45 days of the final determination of the Board.
E.
During the pendency of an appeal, any increase granted by the Board
to be paid to the landlord by the tenant shall be effective as of
the statutory thirty-day notice as required by law. In the event that
the Board decision is reversed, all such increases paid by the tenant
shall be promptly refunded or credited to the tenants' monthly
rent obligation.
A.
Rent control established. All dwelling units, unless otherwise specifically
exempt, shall be subject to the provisions of this chapter. From and
after the effective date of this chapter, no landlord shall charge
any rent in excess of the base rent, as defined herein, except for
such increases to said based rent as are authorized under this chapter.
Any excess base rent and any rent increase not in accord with the
provisions of this chapter are void, of no force and effect, and shall
be refunded or credited to the tenant.
B.
Annual increases in base rent for covered units.
(1)
In the event that a landlord of a dwelling unit covered by this chapter did not collect an increase on an existing tenants' annual rent since May 1, 2020, that landlord may increase the base rental amount, on a one-time basis, up to a maximum permissible 6% in lieu of the 4% in Subsection B(2) below, subject to the requirement to notify the tenant consistent with state law. This provision shall not apply to tenants covered by Subsection B(3) below.
(2)
With the exception of the one-time annual increase to base rent increase set forth in Subsection B(1) above, the maximum permissible annual rent increase on a dwelling unit is 4.00% of the base rent, which increase may be charged no more than once in any twelve-month period, subject to the requirement to notify the tenant consistent with state law. This provision shall not apply to tenants covered by Subsection B(3) below.
(3)
In any dwelling unit in which at least one tenant is 65 years of
age or older, the maximum annual permissible base rent increase is
2.5% of the base rent, subject to the requirement to notify the tenant
consistent with state law.
(4)
The landlord shall serve a notice of said annual increase upon the
tenant which shall include:
(5)
The notice shall contain a certification from the landlord that the
affected dwelling and units therein are in substantial compliance,
as defined herein, with the health, safety and housing laws, codes
and regulations of the Township and applicable laws.
(6)
The annual increase in base rent hereunder shall become effective
upon service by the landlord of the statutory thirty-day notice as
required by law. Any prior notice for an increase beyond that permitted
in the base rent section shall be inoperative.
(7)
A tenant may file a complaint objecting to the annual increase in
base rent within 90 days of receiving notice of the proposed annual
increase asserting that the increase is in excess of the allowable
increase permitted under the ordinance. In such instance, the Rent
Control Officer shall review the proposed increase and determine withing
10 days whether the rent increase exceeds the amount of permitted
annual increase. If it is determined that the increase amount was
in excess of the amount permitted by this chapter, then the base rent
and rent being charged shall be modified accordingly, and any overpayment
or underpayment shall be corrected by crediting, refunding, or payment
as elected by the tenant.
(8)
A tenant may file a complaint objecting to the accuracy of the certification of substantial compliance submitted with the annual increase. In such instance, the Rent Control Officer shall conduct a hearing in accord with the provisions of § 257-6. In the event the tenant is successful, the annual rent increase shall be deemed null and void, the annual increase in rent paid shall be credited to the tenant's rent, and no increase shall be permitted thereafter until the landlord is in substantial compliance.
C.
Hardship increase.
(1)
This subsection applies where the annual operating expenses for any
one building exceed at least 65% of the total annual gross income.
Operating expenses shall include all reasonable expenses necessary
to carry out the proper operation and maintenance of the property,
including property taxes allocated to the year. Operating expenses
shall exclude mortgage amortization, mortgage interest, interest or
costs of financing, attorney's, expert's, or engineer's
fees related to the filing of hardship or capital improvement applications,
depreciation, or expenditures for capital improvements. In reviewing
operating expenses, the Board shall consider normal and recurring
expenses and may make adjustments for extraordinarily high or low
operating expenses in any given year. Annual gross income shall include
all income realized in connection with the operation of the premises,
including rentals from all residential and commercial units, as well
as fees collected for parking, rental from machines, concessions and
garages or other services.
(2)
In considering a hardship application, the Board shall give due consideration
to any and all relevant factors, including, but not limited to, the
following:
(3)
An applicant for hardship relief shall submit to the Board 10 copies
of the following:
(a)
A statement for three prior twelve-month periods of gross rentals
and actual expenses incurred for that time in connection with the
operation of the building to be adjusted to reflect the actual period
of time the applicant has owned the building if owned for less than
three years.
(b)
A list of all present owners of the property.
(4)
A landlord shall not be entitled to apply for a hardship increase
until (s)he has owned the property for at least 18 months.
(5)
The Board's decision shall become effective after service of
the thirty-day statutory notice to tenants.
(6)
The Board shall promulgate rules, regulations, and necessary forms
to be utilized, notice to tenants of hardship applications and notice
to tenants and landlords regarding hearings and general procedure.
Those rules and regulations shall have the force of the law and shall
be filed with the Township Clerk.
(7)
With the filing of a hardship increase application, the landlord
shall simultaneously deliver notice thereof to each affected tenant.
At a minimum, the notice by the landlord, which shall be transmitted
by regular and certified mail, return receipt requested, must provide
tenants with a summary of the application and state the increase sought.
The notice shall also inform the tenant that all documents submitted
in support of the application are available for inspection and copying
during regular business hours at the office of the Rent Control Officer.
Any tenant who receives such notice shall have 30 days to file any
written comments with the Board regarding the application.
(8)
To be deemed a complete application, the landlord shall submit a
letter from the appropriate Township department stating whether the
subject building satisfies the substantial code compliance provision,
as defined in this chapter. A letter that the property does not satisfy
the substantial code compliance provision herein shall detail the
conditions upon which the letter is based. Either landlord or tenant
may seek the intervention of the Rent Control Officer in the event
assistance is needed to secure a timely letter from the appropriate
Township department.
(9)
Notice of hearing. Within 30 days of receipt of a complete application,
the Rent Control Officer shall notify the landlord, in writing, of
the time and place for the hearing. The hearing shall be held not
more than 60 days, nor less than 30 days, from the date of receipt
of a complete application. The landlord shall immediately, upon receipt
of such notification of hearing, post the date of the hearing in a
conspicuous place in the dwelling and shall further serve such notice
upon each affected tenant by regular and certified mail, return receipt
requested, at least 20 days in advance of the hearing. Prior to any
hearing on such application, the landlord shall present the Board
with proof of posting and service of notice to each affected tenant.
(10)
No hardship application shall be considered or granted by the
Board for a period of time more than one year after the expiration
of applicant's last tax reporting year.
(11)
Decision/service. The Board shall render a decision on a hardship
application within 45 days of the conclusion of the hearing before
the Board and shall immediately provide a copy of same to the landlord
by regular and certified mail. Failure of the Board to render its
decision within the time period, absent consent of the landlord, shall
result in the application being deemed granted.
(12)
Service of decision. Upon receipt of the decision, the landlord shall post and serve notice of the decision in accord with § 257-8B.
(13)
Any hardship increase granted by the Board shall become effective
upon service by the landlord of the statutory thirty-day notice as
required by law.
(14)
The hardship increase shall become part of the base rent.
D.
Major capital improvement or major additional services surcharge.
(1)
This subsection applies where the landlord has made a major capital
improvement or major additional service in accord with the definitions
set forth in this chapter.
(3)
An applicant for relief shall submit to the Board 10 copies of the
following:
(4)
With the filing of a major capital improvement application or major
additional services application, the landlord shall simultaneously
deliver notice thereof to each affected tenant. At a minimum, the
notice by the landlord seeking a major capital improvement or major
additional service surcharge, which shall be transmitted by regular
and certified mail, must provide the tenants with a summary of the
application and state the increase sought. The notice shall also inform
the tenant that all documents submitted in support of the application
are available for inspection and copying during regular business hours
at the office of the Rent Control Officer. Any tenant who receives
such notice shall have 30 days to file any written comments with the
Board regarding the application.
(5)
To be deemed a complete application, the landlord shall submit a
letter from the appropriate Township department stating whether the
subject building satisfies the substantial code compliance provision,
as defined in this chapter. A letter that the property does not satisfy
the substantial code compliance provision herein shall detail the
conditions upon which the letter is based. Either landlord or tenant
may seek the intervention of the Rent Control Officer in the event
assistance is needed to secure a timely letter from the appropriate
Township department.
(6)
Notice of hearing. Within 30 days of receipt of a complete application,
the Rent Control Officer shall notify the landlord, in writing, of
the time and place for the hearing. The hearing shall be held not
more than 60 days, nor less than 30 days, from the date of receipt
of a complete application. The landlord shall immediately, upon receipt
of such notification of hearing, post the date of the hearing in a
conspicuous place in the dwelling and shall further serve such notice
upon each affected tenant by regular and certified mail, return receipt
requested, at least 20 days in advance of the hearing. Prior to any
hearing on such application, the landlord shall present the Board
with proof of the posting and service of notice to each affected tenant.
(7)
The Board shall promulgate rules, regulations, and necessary forms
to be utilized, notice to tenants of major capital improvement and/or
major additional services applications and notice to tenants and landlords
regarding hearings and general procedure. Those rules and regulations
shall have the force of the law and shall be filed with the Township
Clerk.
(8)
No major capital improvement or major additional services application
shall be considered or granted by the Board for work completed more
than one year before the date of filing of a request for a letter
of substantial code compliance from the appropriate Township department.
(9)
Finding of improvement/additional service; apportionment of surcharge.
Upon determination that the proposed improvement is a major capital
improvement or that that the proposed service is a major additional
service as defined in this chapter, the Board may grant a surcharge
based upon the cost of the major capital improvement or major additional
service. These costs shall include reasonable interest thereon, if
any. Any surcharge granted by the Board shall be fairly apportioned
among the affected units based on the size of the dwelling units and
the benefit of the improvement to each dwelling unit.
(10)
Permits, as required by law, are to be secured from all agencies
having control and jurisdiction for alterations, repairs, replacements,
extensions, and new buildings. All work done shall adhere to appropriate
code standards and shall be inspected by any agency having control
and jurisdiction, and their approval obtained. Copies of such permits
shall accompany any major capital improvement and major additional
service application.
(11)
Decision. The Board shall render a decision on the major capital
improvement/major additional service surcharge application within
45 days of the conclusion of the hearing before the Board. Failure
of the Board to render its decision within the time period, absent
consent of the landlord, shall result in the application being deemed
granted.
(12)
Service of decision. Notice of the decision shall be posted and served by the landlord in accord with § 257-8B.
(13)
The surcharge hereunder, if granted by the Board, shall become
effective upon service by the landlord of the statutory thirty-day
notice as required by law.
(14)
Any surcharge hereunder shall not become part of base rent, shall not be included in calculating the annual rent increases allowable under § 257-9, and shall expire at such time as the cost of the improvement, plus reasonable interest, have been covered by the surcharge, which shall be determined by the Board as part of its decision.
(15)
Protected tenancy status.
(a)
No major capital improvement or major additional service surcharge
shall be imposed upon any tenant who has been granted protected tenant
status pursuant to N.J.S.A. 2A:18-61.22 or 2A:18-61.40.
(b)
Any major capital improvement or major additional service surcharge
awarded within two years prior to the date of notice to the municipal
administrative officer required by N.J.S.A. 2A:18-61.27 or 2A:18-40
shall immediately become null and void upon the grant of protected
tenancy status. The protected tenant's rent shall be recalculated
and reduced accordingly; however, no rebate of previously paid surcharge
shall be granted.
F.
Substantial compliance with housing and building codes. No hardship
increase and/or major capital improvement/major additional services
surcharge shall be permitted if the building or grounds is not in
substantial compliance with the applicable building codes as set forth
in this chapter.
G.
Legal rent calculation. A tenant may request a legal rent calculation.
In calculating the maximum legal base rent, the Rent Control Officer
and the Board shall allow all annual rent increases to the base rent
that may have been applied to an apartment, whether actually charged
or not. The landlord shall not, however, be permitted to increase
the rent for a tenant on account of any voluntary rent reduction or
the forbearance of any otherwise permissible rent increase for said
tenant.
A.
Continuation of services. During the term of the lease, the landlord
shall maintain the same standards of service, maintenance, furniture,
furnishings, and equipment in the housing space and dwelling as previously
provided or required under the lease or otherwise mandated by law.
B.
Decline in services. When services, care, or maintenance, or when
the standards of service, maintenance, furniture, furnishings and
equipment in the housing space or dwelling are not substantially maintained
as previously provided or required under the lease or otherwise mandated
by law as specified above, any tenant or tenant group may apply to
the Rent Control Board for a decrease in rent. The Rent Control Officer
shall determine the value of the decline in service and adjust the
tenant's/tenants' rent accordingly for the time period of
the decline.
C.
Applicability to parking spaces. The provisions of this section shall
also apply to any on-site parking or garage space occupied by the
tenant in conjunction with rental and occupancy of housing space.
If it is determined, after a hearing of the Board, as described herein,
that the parking was a previously provided service, then the rent
shall be decreased by the cost of the parking. The tenant shall provide
proof of the cost of the parking that the tenant has incurred. This
proof shall be included with the request for a reduction in rent.
D.
Notice of hearing. Within 30 days of receipt of a complete application,
the Rent Control Officer shall serve notice on the landlord and the
complaining tenant/tenant group, in writing, of the time and place
for the hearing scheduled before the Board. The notice shall inform
the parties that all documents submitted in support of the application
are available for inspection and copying during regular business hours
at the office of the Rent Control Officer. The landlord shall have
30 days to file any written comments with the Board regarding the
application. The hearing shall be held not more than 60 days, nor
less than 30 days, from the date of receipt of a complete application.
If the complaint is on behalf of a tenant group for all units in the
dwelling, the complainant shall post the date of the hearing in a
conspicuous place in the dwelling.
E.
Hearing. At the hearing, the Board may consider the extent to which
the conditions complained of impact the health, safety and welfare
of the tenants, the duration of the conditions complained of, whether
the conditions violate any provision or standards of the Township's
property maintenance, building, health or other applicable codes,
the corrective action, if any, taken by the landlord, and any other
factors the Board deems relevant.
F.
Utilities. During a tenant's occupancy of a unit in which the
landlord provides utilities to the units of the building, the landlord
will be prohibited from constructing a separate apartment unit meter
and billing for any utility service previously provided by the landlord
as part of the services to the building, including, but not limited
to, heat, hot water, water, and sewerage.
G.
Decision. The Board shall render a decision for a rent reduction,
if any, within 30 days of the conclusion of the hearing before the
Board, which decision shall be in writing. In rendering its decision,
the Board shall set the amount of the deduction and the effective
date of the deduction.
H.
Period of time of deduction. The deduction, if any, shall remain
in effect until the landlord proves to the Rent Board that the standards
have been restored, or until such time as the Rent Board deems appropriate,
but no earlier than the date upon which the landlord has filed written
notification with the Rent Control Officer that the standards have
been restored.
I.
Service of notice of decision. If the decision affects a single dwelling
unit, then the Rent Control Officer shall serve a copy of the decision
on the affected tenant and the landlord by regular and certified mail
within five days of the decision. If the decision affects more than
a single dwelling unit, the decision shall be provided to the landlord
immediately by regular and certified mail. Upon receipt, the landlord
shall post a notice in a conspicuous place in the building stating
that the Board has rendered a written decision, which decision is
available at the Rent Control Office. The landlord shall further transmit
the decision to all affected tenants by regular and certified mail
within five days of receipt of the decision. Simultaneously therewith,
the landlord shall provide the Board with proof of service upon the
tenants by regular and certified mail.
A.
Any parking provided to a tenant by a third party unrelated to the
landlord and negotiated between the tenant and said third party separately
from the apartment rental and outside the apartment rental location
is not covered by this chapter.
B.
Any parking provided by the landlord or anyone related to the landlord,
rented in conjunction with the apartment rental to the tenant, whether
or not billed separately, is covered by this chapter and increases
thereon may not exceed the amount permitted under the ordinance.
C.
Notwithstanding anything in this chapter or the language in any lease,
no charge for parking may be treated as additional rent in any action
brought under N.J.S.A. 2A:18-61.1 involving nonpayment of rent.
A.
Notwithstanding any limitations on permissible rent increases under
any other provisions of this chapter, upon the voluntary uncoerced
vacation of any apartment, rent increases for which are controlled
in this chapter, the landlord shall have the right to fix the rent
for such vacated apartment at such amount deemed appropriate by the
landlord.
B.
The landlord shall have the right to fix the rent for such vacated
unit as set forth above no more than once in every five-year period.
The five-year period shall be effective from and after the effective
date of the ordinance.
C.
When utilizing the vacancy allowance, the landlord shall provide the Rent Control Officer with a certification that the landlord is in compliance with this chapter's rent registration requirement under § 257-13; that the landlord is in substantial code compliance with applicable law, as defined in this chapter; that the landlord has not harassed or pressured the tenant into vacating the housing unit as set forth under § 257-12; that the vacating of such unit was a voluntary act on the part of the tenant or was by virtue of a court order; and that a vacancy allowance pursuant to this section has not been charged for the unit during the previous five-year period after this chapter was adopted. The certification shall also include:
(1)
Documentation to show that the vacancy allowance has not been sought
during the five-year period since the ordinance was adopted, including
a listing of all occupying tenants, their beginning and end lease
period, and the rents paid.
D.
The rent established hereunder shall be deemed the new base rental
for the unit within 10 days of submission of the documentation conditioned
upon a revision to the rental registration statement which shall be
required.
E.
Notwithstanding Subsection D, if the Rent Control Officer determines that the certification is materially false, the Rent Control Officer shall notify the landlord that s/he has 20 days to submit further clarifying evidence. If clarifying evidence is timely provided, the Rent Control Officer shall conduct a hearing within 10 days of receipt of the clarifying evidence. If the Rent Control Officer sustains the determination that the certification is materially false, as to a unit that is vacant at the time of the determination, the landlord shall forfeit its right to the vacancy decontrol allowance for the unit for a period of five years from the sustaining determination. If the Rent Control Officer sustains the determination that the certification is materially false as to a unit that is already occupied by a tenant with a vacancy decontrol allowance at the time of the determination, the rent for said tenant shall be rolled back to the rent in effect prior to the vacancy decontrolled rent, any rent overage shall be refunded or credited to the tenant, and the landlord shall forfeit its right to the vacancy decontrol allowance for the unit for a period of five years from the date of the sustaining determination. If such a determination is made, the landlord will be entitled to the annual increase permitted under this chapter subject to serving notice as required under state law.
F.
If a vacancy allowance is permitted hereunder, the five-year period
runs from the effective date of the vacancy allowance.
A.
Harassment; reduction of services prohibited. Any tenants desiring
to remain in their units may do so without provocation or retaliation
from landlords. For the purposes of this section, harassment of tenants
shall mean conduct, whether direct or indirect, committed intentionally
or negligently by a landlord, or anyone acting on his/her behalf.
These actions include, but are not limited to:
(1)
A reduction in the quality of basic services necessary to the health
safety and welfare of the tenants.
(2)
Heat, hot water.
(3)
Adequate security.
(4)
Intermittent failures.
(5)
Bothersome telephone calls or letters.
(6)
Frivolous eviction threats or legal proceedings.
(7)
Actions which would cause a reasonable person of like age and physical
condition of a tenant to fear for his/her life, limb, property, or
home.
B.
Investigation/prosecution of harassment complaints. The Township
shall investigate and, if appropriate, prosecute complaints involving
harassment filed by either tenants or landlords.
A.
Registration: filing and fee.
(1)
Within 60 days of final adoption, every landlord of a dwelling unit
subject to this chapter shall file an initial registration statement
with the Rent Control Officer showing the amount of base rent for
each such dwelling unit as of April 1, 2022, except as herein provided
by the definition of base rent. The landlord shall refile annual statements
thereafter on April 1 of each succeeding year. The filing shall be
on the approved form provided by the Rent Control Officer, complete
with all information as set forth below, along with a filing fee of
$10 for each dwelling unit. The form may also be available online.
(2)
In the event a landlord fails to file the initial registration statement
for a subject dwelling unit within 60 days of the adoption of the
ordinance and/or within 15 days of each subsequent annual April 1
date, the Rent Control Officer shall send notice to the landlord by
certified mail, return receipt requested, and by regular mail, notifying
the landlord of its failure to so file and further notifying the landlord
to file the registration statement along with a late filing fee of
$20 per dwelling unit.
(3)
In the event the landlord fails to file the completed registration
statement within 45 days of the date of the Rent Control Officer's
mailing notice, the landlord shall be prohibited from increasing the
rental amount for such dwelling unit until such time as a completed
registration statement is filed and all applicable fees are paid.
(4)
In the event the landlord files false information regarding the amount
of rental for a dwelling unit, the landlord shall be prohibited from
increasing the rental amount for such dwelling unit.
(5)
The registration statement shall be considered a public document
which shall be made available for inspection upon reasonable notice
and times as set by the Rent Control Officer.
(6)
The registration requirements in this chapter are in addition to
any applicable registration requirements under state law, at N.J.S.A.
46:8-27 et seq., and regulations thereunder, if applicable, which
state registration statement is filed with the Township Clerk. At
the time of filing the state registration statement with the Town
Clerk, the landlord shall also provide a copy of same to the Rent
Control Officer.
B.
Registration statement - contents. A registration statement shall
include at least the following:
(1)
The apartment number.
(2)
The number of rooms for each apartment and the number of bedrooms.
(3)
The current rent for each apartment.
(4)
The amount of the last increase for each apartment.
(5)
The date of the last increase for each apartment.
(6)
The date each lease began and the date the lease ended for each apartment
unit.
(7)
The services provided:
|
Gas-heat
|
Yes
|
No
|
|
Oil-heat
|
Yes
|
No
|
|
Electricity-heat
|
Yes
|
No
|
|
Water-bill
|
Yes
|
No
|
|
Sewerage-bill
|
Yes
|
No
|
|
Parking-included
|
Yes (amount)
|
No
|
|
Washer/dryer
|
Yes
|
No
|
(8)
If applicable, the services provided to the building and the telephone
number.
(9)
If applicable, the superintendent's name, address, and telephone
number.
A.
Compliance required prior to granting increase.
(1)
Any landlord who seeks a hardship or major capital improvement increase under § 257-9 shall file with an application a certification from the office of the appropriate Township department to the effect that the building and grounds are in substantial compliance with Township building and housing codes, which certification shall be based on an application made by the landlord to the appropriate Township department not more than one month before the filing of his/her application with the Board. No such increase may be granted until such certification had been filed and, if a tenant contests the accuracy of such certification, until the Board has determined that there is substantial compliance.
(2)
The Board shall deny the application until there has been such compliance.
A.
At the inception of tenancy between a landlord and a tenant, the
landlord shall provide the tenant with a STATEMENT OF RIGHTS, in bold
type, and attached separately to the lease. Such STATEMENT OF RIGHTS
shall be separately attached to every notice of rent increase.
B.
The STATEMENT OF RIGHTS shall read:
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- The Township of Montclair has enacted a Rent Control Ordinance.
|
|
- The Ordinance does not cover the rental of single-family homes
or single condominium or cooperative units but covers the rental of
units in buildings containing 2 or 3 units in which the owner does
not reside and all units in buildings containing 4 units or more.
|
|
- The Ordinance permits rent increases on covered units once
every 12 months in an amount not to exceed 4% or 2.5% for senior 65+
provided the unit is in substantial compliance with the applicable
building laws and is properly registered with the Office of Rent Control.
|
|
- The Ordinance permits a landlord to fix the initial rents
in any amount on a vacant unit, with subsequent increases at 4% or
2.5% ONLY once every five years.
|
|
- The Ordinance permits tenants to challenge rents and to challenge
annual rent increases within 90 days of receipt of the notice of rent
increase that are in violation with the Ordinance.
|
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- The Ordinance includes many other provisions that may impact
tenants and landlords. Tenants and landlords are encouraged to review
the Rent Control Ordinance.
|
|
- The Rent Control Ordinance is available for inspection and
is enforced by the Rent Control Officer and the Rent Control Board.
The Office of Rent Control is located in the Township Municipal Building
at 205 Claremont Avenue, Montclair, NJ.
|
There is hereby established a schedule of fees for applications
to the Rent Control Board.
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Fee Type
|
Amount
|
|---|---|
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Annual registration statement filing
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$10 per apartment
|
|
Late filing fee
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$20 per apartment
|
|
Legal rent determination
|
$25 per apartment
|
|
Appeal of Rent Control Officer decision
|
$100 per appeal
|
|
Capital improvement or service increase application
|
$250
|
|
Hardship application
|
$300
|
|
Vacancy allowance application
|
$250
|
Personal service or service by certified mail that is either
refused or uncalled for may be remailed by ordinary mail and shall
be effective as though personal service or notice by certified mail
had been accepted.
Any person found guilty of violating any provision of this chapter
or of willfully filing a material misstatement of fact with the Rent
Control Officer or Board shall be punishable by a fine not exceeding
$2,000 or by imprisonment not exceeding 90 days or both, as determined
by the Township Municipal Court. A violation affecting more than one
leasehold shall be considered a separate violation as to each leasehold.
This section shall be in addition to any remedies for noncompliance
or violation of this chapter set forth elsewhere herein.
This chapter being necessary for the Township of Montclair and
its tenants subject thereto shall be liberally construed to effectuate
those purposes.
If any provision of this chapter is declared invalid, such invalidity
shall not affect any other provisions of this chapter which can be
given effect, and to this end, any provisions deemed invalid shall
be severable and the remaining provisions shall be given the full
force of law.
