This chapter shall be known as the "Manufactured Home Park Rent Stabilization Ordinance of the Township of Gloucester."
[HISTORY: Adopted by the Township Council of the Township of Gloucester 2-27-2012 by Ord. No. O-12-04. Amendments noted where applicable.]
As used in this chapter, the following terms shall have the meanings indicated:
A manufactured home or mobile home park with pads available for rent to tenants under the same management and trading under the same name.
A manufactured home pad or mobile home pad able to be utilized by a manufactured home or mobile home, and upon which said manufactured home or mobile home is placed, and offered for rent to one individual or family unit, together with all privileges, services, and furnishings appurtenant thereto, including the use or occupancy of such portion of the complex as is granted by the landlord to the tenant under the lease. There shall be two classes of dwellings as follows:
CLASS 1 DWELLING SPACESThose which the landlord does not pay for heat or other utilities used by the tenants.
CLASS 2 DWELLING SPACESThose which the landlord pays for heat or other utilities directly to the service provider.
A rate of return to the landlord which is not confiscatory. It should be one generally commensurate with returns on similar investments; however, an evaluation must be made of the interests of not only the investor (landlord) but also of the tenants and the general public.
An owner, sublessor, assignee or other person, firm, partnership or corporation receiving or entitled to receive rents or any agent of the same receiving or entitled to receive rent from a tenant of a manufactured home or mobile home park.
The yearly amount charged by the Camden County Municipal Utility Authority (CCMUA) for sewer service per unit, reduced by the amount of any decrease implemented by the Gloucester Township Utility Authority for sewer service subsequent to the effective date of this chapter, divided by 12 (to reach a monthly surcharge amount).
The year to which the proposed rent increase is to be applied, as established by the Rent Stabilization Administrator. A new landlord may change the operational year of the complex at the time of its first application to the Administrator pursuant to this chapter; thereafter, the operational year shall not be changed.
Expenses of a landlord related to a complex, including but not limited to taxes and depreciation not previously compensated for through tax savings or other such means, utilities, insurance, maintenance, reasonable repairs, vacancy allowances and uncollectibles.
A statement of rental value which includes a showing of the age, character, locality, appurtenant amenities and state of repair of the site improvements of a manufactured home or mobile home park, as well as comparable rentals for similar properties located within the Township.
An individual who owns and/or occupies a manufactured home or mobile home located in a manufactured home or mobile home park within Gloucester Township, which complex is subject to the provisions of this chapter, and which individual is otherwise residing within said manufactured home or mobile home pursuant to a valid lease and whose rents are affected by this chapter.
The administration of the Rent Stabilization Ordinance shall include the powers necessary and incidental to carry out and execute the purposes of this chapter. The powers granted are:
B.
The Administrator shall function the same and shall have the same duties and responsibilities for Chapter 68A as for Chapter 68. All terms and provisions of § 68-3 are hereby incorporated by reference herein as § 68A-3, as same may be needed in order to fully function to accomplish the intent and purposes of this chapter.
A.
Whether or not the landlord is seeking a rent increase, he must at all times maintain the same standards of service, maintenance, furniture, furnishings, recreational facilities and landscaping as he is required to do by law or by the terms of the lease at the date the lease was entered into. The intent of this subsection is to have the landlords maintain their facilities at all times, and to upgrade their facilities for the betterment of the community. Any fraudulent inducement by the landlord which results in the signing of the lease by the tenant shall be considered by the Administrator in its determination.
B.
Any individual tenant or class of tenants who are not receiving the same standards of service, maintenance, furniture, furnishings, recreational facilities or landscaping which existed at the signing of the lease may petition to the Administrator for a rent reduction in view of the deficiency. The tenant or class of tenants shall pay the reduced rent as determined by the Administrator as the full payment of rent until the landlord proves that the deficiency has been corrected. The Administrator shall determine the reduced rent by using the following suggestive, but not exclusive, guidelines:
(1)
Violation of the applicable housing, building, maintenance or sanitary code.
(2)
Nature of the deficiency or defect as it affects habitability.
(3)
The potential and actual effect of the deficiency or defect upon safety, security and sanitation of the dwelling and surrounding area.
(4)
Length of time of the existence of the deficiency or defect.
(5)
Age of the structure.
(6)
Amount of rent.
(7)
Any responsibility of the tenant for the creation of the defect or deficiency, or denial of access to correct the deficiency or defective condition.
No application for any rental increase either under §§ 68A-7A, 68A-7B or 68A-8 shall be accepted by the Administrator as complete unless proof of payment of all real estate taxes, Municipal Utility Authority service charges and CCMUA, through the appropriate official financial director/administrator, executive director, etc., indicating that arrangements have been made for payments and that this requirement can be waived.
No application for any rental increase either under § 68A-7 or 68A-8 shall be accepted by the Administrator as complete while there is pending any charge before the Municipal Court of the Township of Gloucester, or any other court of competent jurisdiction, for a violation of this chapter or any other ordinance of the Township of Gloucester that relates to public health, safety and welfare, or whenever a violation of this chapter or any other ordinance of the Township of Gloucester relating to public health, safety and welfare remains unabated by the landlord.
Establishment of a rent increase between a landlord and a tenant to whom this chapter is applicable shall be determined by this section of this chapter. The percent increases in § 68A-7A are not mandatory increases, and the Administrator must consider the criteria set forth in § 68A-4. Failure of an applicant to meet the criteria set forth in § 68A-4 may result in the granting an increase less than that applied for.
A.
Standard rent increase procedure.
(1)
An annual increase of up to 3% for Class 1 dwelling spaces and 2.5% for Class 2 dwelling spaces may be granted by the Administrator if the landlord provides the Administrator with a complete application, including but not limited to a copy of a proper termination notice pursuant to applicable law pertaining to the units and proof that service thereof was made on each affected tenant at least 90 days prior to the effective date stated in the notice.
(2)
The notice must state that the landlord has applied for a rent increase, that the tenancy established at the outset of the leasehold is hereby terminated and that a new tenancy may be created by the parties at an increased rental, if approved. If the Administrator is not provided with proof of the proper service of this notice by the required time, the application shall be incomplete. The termination notice must include a statement that the tenant has a right at any time during the term of the tenancy to petition the Administrator for a reduction of rent for defects or deficiencies that have not been corrected or otherwise remain unabated.
(3)
The landlord must also submit to the Administrator a sworn statement that the maintenance and security standards for the complex as set forth in § 68A-4 have been complied with. The Administrator may require the submission of any other information, including more detailed information relating to maintenance standards, security standards and expenditures, which it deems necessary or proper for its deliberation.
(4)
The landlord must also submit a schedule of rental rates for the previous operational year for all pad units in the complex by providing the rent rolls with the categories listed below.
B.
Rate of return increase procedure. An annual rental increase in excess of that set forth in § 68A-7A may be granted to the landlord by the Administrator, provided that the Administrator is supplied with the following:
(3)
A statement setting forth the estimated reasonable expenses and all other reasonable costs for the operational year, by providing the following:
(a)
Statement of financial condition (balance sheet) for the period ended in the application (no more than 60 days prior to the filing of application).
(b)
Statement of revenue for the period ended in the application (no more than 60 days prior to the filing of the application). This statement should include:
(c)
Statement of operating expenses for the period ended in the application (no more than 60 days prior to filing the application). The operating expenses should be detailed enough to make an analysis of the expenses meaningful. The operating expenses shall not include depreciation or interest expenses.
(d)
Comparative statement of operations. This statement will show side by side the revenue and operating expenses for the current year and the two preceding years on an actual basis and for the year under review on an actual basis if available and for the year under review on an estimated basis, if projected. The projection should assume no rental increase.
(e)
Statement of changes in financial position.
(f)
Analysis of operating expenses. The applicant should furnish a detailed analysis of costs in the following areas for the then most recent and the projected operational years:
(5)
A schedule showing the original cost of the investment and capitalized expenditures since date of purchase.
(6)
Statement of value. This can consist of a statement by the landlord or an appraiser's report. However, the establishment of value must be fully explained and disclosed.
(7)
Statement of return. The landlord must calculate present rate of return the increase will yield. The rate of return must be substantiated as being reasonable for the type of investment and risk involved. Comparison to similar type of investments and their yields should be discussed.
(8)
Certification by the landlord as to the accuracy of all financial statements. The landlord's certification should be accompanied by an audited financial statement as prepared by a certified public accountant as prescribed by the American Institute of Certified Public Accountants.
(9)
For a rate of return increase application, the burden of proof in regards to value computation, the reasonableness of expenses, reasonable rental value, inadequacy of rate of return and all items pertaining thereto is on the applicant. If determined necessary, the Administrator may consult an auditor, accountant or real estate appraiser, appointed by the Township, to provide an examination of all documents supplied by the applicant, as well as other relevant information, and to present findings to the Administrator as part of the hearing on the rate of return application.
(10)
A property owner cannot submit a rate of return application whereby more than one complex is mentioned therein. A property owner will not be permitted to subsidize a complex which yields inadequate return out of its profits derived from other complexes or concealed by averaging it together with other complexes.
(11)
In determining the value of real property, the Administrator may consider evidence using various means of computation, such as depreciated replacement costs, market value based on sales of comparable properties or any soundly conceived method which the parties may suggest, such as assessed valuation or original cost depreciated.
(12)
The landlord must provide the Administrator with the aforementioned information at least 60 days prior to a hearing on a rate of return application. Failure of the landlord to provide the Administrator with this information shall make the application incomplete.
C.
A completed standard rental increase or rental decrease application shall be filed with the Administrative Officer at least 90 days prior to the requested date for determination. Once an applicant has filed a complete application, and the Administrator has conducted a review, at which time all interested parties may be present, the Administrator shall render his decision within 90 days, unless extended with the consent of the applicant. Upon failure to do so, such application, at the expiration of such time, unless otherwise extended with the consent of the applicant, shall be deemed to be denied in the same manner as though the Administrator has rendered a decision to that effect.
D.
No increase or decrease shall become effective until the date of operational year or after the date of the Administrator's final decision.
E.
Any rental increase or rental decrease granted shall be rounded up or down to the nearest dollar.
F.
If an application is postponed by an applicant, for whatever reason, for over 180 days after filing, then the application shall be deemed to have been denied without prejudice. If an application is not complete at the time of the initial hearing date, and remains incomplete for over 180 days beyond the filing date, then the application shall be deemed to have been denied without prejudice. For any application deemed automatically denied without prejudice by these provisions, the original application fees paid shall be nonrefundable; a new application, including new fees, shall be required to be submitted by the applicant if the applicant desires to seek approval for a rental increase. An applicant may submit a maximum of two applications for each operational year; if these two applications are denied without prejudice pursuant to this provision, no further application may be submitted by that applicant for the same operational year. An applicant may withdraw an application at any time; if an applicant withdraws an application less than seven calendar days prior to the initial hearing date, then the application fees paid shall be nonrefundable. An applicant may withdraw a maximum of two applications for each operational year; if two applications are withdrawn by the application for the same operational year, no further application may be submitted by that applicant for the same operational year.
G.
Miscellaneous fees.
(1)
As part of a landlord's application for a rent increase, a landlord shall submit a schedule of all miscellaneous fees which are being charged to the tenants of its complex. This miscellaneous fee schedule shall include:
(2)
The Administrator, at the time of the review on the landlord's application for a rent increase, shall consider the miscellaneous fees to be charged and, based on the reasonableness of the charges, shall approve, disapprove or modify said charges. All future increases for miscellaneous fees as originally set by the Administrator are prohibited unless first approved by the Administrator upon application by the landlord after notice to the tenants in accordance with the same notice requirements as provided for the application for rent increase.
(3)
For the purpose of this chapter, miscellaneous fees shall be any consideration, including cash, property, services, or otherwise, given by a tenant to a landlord in addition to the actual rent paid for the right to occupy a dwelling unit, for any amenity, service or property provided by or offered by the landlord, including such items as pool fees, pet fees, short-term fees, guest fees, late charges, restoration fees, bad check charges, as well as variations of any of the above.
(4)
Notwithstanding anything to the contrary as may otherwise be contained in this miscellaneous fees subsection, a landlord may apply just for a new miscellaneous fee charge or a miscellaneous fee increase separate from a landlord's application for a rent increase. For such a separate application, the landlord shall pay the same application fees as would be applicable to a separate net CCMUA surcharge application as those fees are set forth in § 68A-15C.
H.
Net CCMUA surcharge.
(1)
A surcharge may be granted by the Administrator upon the complete and proper application by a landlord. Such surcharge shall be limited to the net CCMUA surcharge and to no other charges. Such surcharge shall be separate and distinct from the monthly rental amount due landlord, and shall not be used as a basis for subsequent percentage rental increases pursuant to §§ 68A-7A, 68A-7B or 68A-8.
(2)
A complete and proper application for a net CCMUA surcharge requires the submission of the following by the landlord, otherwise pursuant to and in accordance with the provisions of § 68A-7A.
(a)
Application fee in accordance with § 68A-15C, unless this application for net CCMUA surcharge is combined with another application under this chapter.
(c)
Proof from the Camden County Municipal Utility Authority that: (a) the subject complex is effectively hooked-up or tied-in to the regional CCMUA system; and that (b) all sewer charges for the complex have been paid to date. Notwithstanding the above, an applicant may apply for a net CCMUA surcharge prior to the actual hook-up into the system and the billing therefor, without the above-stated proofs if they are not yet available, but in no event shall the net CCMUA surcharge be charged to tenants until such time as hook-up is effective. The amount of any initial net CCMUA surcharge shall be based upon the actual amount billed by the Camden County Municipal Utilities Authority; in the event the CCMUA bills are less than the anticipated amount, then the tenants shall receive a credit for any overpayment.
(d)
A net CCMUA surcharge schedule computing the proposed surcharge for each rental unit, the current rent, the current rent plus surcharge amount and the percentage of increase due to the surcharge.
(e)
Affidavit or certification from the applicant that the CCMUA sewer charges are being charged for all units for which the surcharge is being applied for or an explanation of which units (and why) the sewer charges are not being charged (i.e., units no longer being rented, with an explanation as to why no longer being rented).
(f)
Proof in the form of a statement from the Gloucester Township Municipal Utility Authority of the amount of reduction, if any, in their sewer service charge resulting from the connection to the CCMUA regional system or a statement that no reduction has been made.
(g)
Notice to the tenants, on forms approved by the Administrative Officer of the Rent Stabilization and proof that service thereof was made on each affected tenant at least 90 days prior to the scheduled hearing.
(3)
Notice of the net CCMUA surcharge application shall be made pursuant to the notice provisions as set forth in § 68A-7A modified to reflect a net CCMUA surcharge application.
(4)
Failure of an application to meet the criteria set forth in § 68A-4, Maintenance of standards, may result in denying the net CCMUA surcharge application.
(5)
A net CCMUA surcharge may be granted only once to each unit in a complex; said surcharge shall continue indefinitely but shall terminate upon the cessation of CCMUA sewer charges to that unit, for whatever reason. Notwithstanding this provision, the granted net CCMUA surcharge amount may be automatically increased or decreased by the amount of an increase or decrease in the amount charged by the CCMUA for sewer service per unit, divided by 12 (to reach a monthly increase amount). Similarly, the granted net CCMUA surcharge amount shall be decreased automatically by the amount of any reduction made by the Gloucester Township Municipal Utility Authority for sewer service subsequent to the effective date of the surcharge, divided by 12 (to reach a monthly reduction amount). A landlord shall be required to submit proofs of the current net CCMUA surcharge, as computed, as part of any subsequent rental application before the Administrator, either under § 68A-7A, § 68A-7B or § 68A-8.
A landlord, if qualifying, may apply for a hardship increase application. A hardship increase may be applied for at any time during the landlord's operational year. The landlord must comply with all notice provisions applicable to a standard rent increase (§ 68A-7A) as set forth in this chapter. A hardship application requires the same financial data presented for a rate of return increase pursuant to § 68A-7B, except that items may be waived by the Administrator as appropriate, upon the advice of an accountant retained by the Administrator. Additionally, the applicant shall submit the following:
A.
No landlord, after the effective date of this chapter, shall increase any rents of tenants of a complex subject to this chapter without first having made application therefor and complying with the provisions of this chapter and therefore receiving approval of such increase.
B.
A rental increase, except for a hardship application pursuant to § 68A-8 above, shall be granted by the Administrator only once within a twelve-month period.
C.
Notwithstanding any provision contained within this chapter to the contrary, the landlord of a manufactured home park or mobile home park may nevertheless increase the rent being charged to the tenant of a particular dwelling space (i.e., a mobile home pad unit) without the prior approval of the Administrator under the following circumstances:
(1)
Upon the sale or transfer of the ownership or right of occupancy of a dwelling space, the initial rent charged to the new transferee or occupant of that dwelling space may be adjusted by the landlord by an amount that is equal to one-half of the difference between the then current rent and fair market rent, which increase shall be known as the "first rent increase."
(2)
Upon any subsequent sale or nonexempt transfer of the ownership or right of occupancy of the same dwelling space, the landlord may thereafter increase the then current base rent to the then fair market rent, which increase shall be known as the "second rent increase."
(3)
In the event that a subsequent sale or nonexempt transfer as contemplated by § 68A-9C(2) above does not occur within five years after the initial sale or transfer [per § 68A-9C(1) above], then the landlord may nevertheless thereafter increase the then current base rent to the then fair market rent, but such second rent increase shall be phased in at the rate of 20% per year of the amount of the second rent increase over a five-year period of time, which increase shall be known as the "phased-in increase."
(4)
Any new rent duly established by either § 68A-9C(1) (first rent increase), § 68A-9C(2) (second rent increase) or § 68A-9C(3) (phased-in increase) above will thereafter be deemed the base rent under this chapter and shall be subject to all other rent increase provisions contained within this chapter.
(5)
Exempted from any of the rental increases (i.e., first rent increase, second rent increase or phased-in increase) of this provision (§ 68A-9C) are interspousal transfers (e.g., upon the death of a spouse or transfers from estate planning purposes where there is no actual change in tenancy) and subleases if the landlord, in its sole discretion, permits same.
(6)
Once the landlord of a manufactured home park or mobile home park adjusts the rent being charged to a tenant of a particular dwelling space under either § 68A-9C(2) or (3) above without the prior approval of the Administrator as so allowed, such that fair market rent has been achieved through a second rent increase or phased-in increase, then all subsequent rent increases shall otherwise be in accordance with this chapter.
(7)
For the purposes of this provision (§ 68A-9C), the fair market rent shall be $425, which fair market rent amount shall be effective through December 31, 2004. After January 1, 2005, the determination of fair market rent shall be made by the Administrator through the submission by the landlord of comparable rents charged as comparable mobile home parks not subject to rent control or rent stabilization. The Administrator shall establish this new fair market rent upon written application of a landlord after due notice for a public hearing as otherwise required within this chapter, and the payment of an application fee of $250. Upon proper application by a landlord, the Administrator shall determine a new fair market rent within 90 days of such application.
Any rental increases authorized pursuant to this chapter shall take effect at the expiration of the term of a lease or upon termination of a periodic tenancy. Prorated or partial increases are prohibited, and any such prorated increase (for less than a month) shall be void. Any increase authorized for an operational year, but not actually implemented by the landlord within said operational year, shall be deemed waived and shall thereafter be void; as intended by this prohibition, if a tenant is not actually paying the approved monthly rental amount, or any portion thereof, then it is deemed not to be "actually implemented." Any rental increase in excess of that authorized under this chapter shall be void.
The landlord of a manufactured home or mobile home pad being rented for the first time shall not be restricted in the rent charged for such dwelling. Any subsequent rent increases, however, shall be subject to the provisions of this chapter.
An intentional violation of any provision of this chapter, including but not limited to the willful filing with the Administrator of any material misstatement of fact, shall be a disorderly person's offense and shall be punishable by a fine not exceeding $200. Each day that a violation occurs shall be considered a separate offense. A violation affecting more than one leasehold unit shall be considered separate offenses.
Any provision of a lease or other agreement whereby any provision of this chapter is waived shall be deemed against public policy and shall be voided.
A.
Any interested tenant may appeal to the governing body, or as designated, any final decision of the Administrator on any application for rental increases set forth in § 68A-7A. Such appeal shall be made within 45 days of the date of such final decision. The appeal to the governing body shall be made by serving the Municipal Clerk in person or by certified mail with a notice of appeal specifying the grounds thereof and the name and address of the appellant and the name and address of his attorney, if represented. Such appeal shall be decided by the governing body, or as may be designated, only upon the filed information.
B.
Notice of the meeting to review the record shall be given by the governing body by personal service or certified mail to the appellant, to the landlord at least 10 days prior to the date of the meeting.
C.
The governing body shall conclude a review of the record below not later than 45 days from the date of receipt unless the appellant consents in writing to an extension of such period. Upon the filing of an appeal, the Municipal Clerk shall order the filed information, the cost of which is to be paid by the appellant. Failure of the governing body to hold a hearing and conclude a review of the record and to render a decision within such specified period without written consent of the appellant shall constitute a decision confirming the action of the Administrator.
D.
The governing body may reverse, remand or affirm, wholly or in part, or may modify the final decision of the Administrator.
E.
An appeal to the governing body, or as designated, shall stay all proceedings in furtherance of the action in respect to which the decision appealed from was made, including the implementation of any rent increase.
F.
The governing body, or as designated, shall mail a copy of the decision to the appellant or, if represented then to his attorney, without separate charge and for a reasonable charge to any interested party who has requested it, not later than 10 days after the date of the decision.
G.
Nothing in this chapter shall be construed to restrict the right of any party to obtain a review by any court of competent jurisdiction according to law.
A.
An application pursuant to § 68A-7A shall be accompanied by an application fee computed by multiplying the number of dwelling units by $2 per dwelling unit, but in no event shall the fee be fewer than $200, except in the case of six or less rental spaces contained in any single complex, which application fee shall then be $50.
B.
Escrow.
(1)
An application filed pursuant to § 68A-7B or § 68A-8, in addition to the application fee set forth in § 68A-15A above, shall be accompanied by an escrow deposit computed by multiplying the number of dwelling units by $3 per dwelling unit, but in no event shall the fee be less than $1,000 for 25 units or less, or $3,000 for 26 units or more.
(2)
The total deposit collected pursuant to § 68A-15B(1) above shall be placed in an escrow account with the Gloucester Township Housing Authority, to be applied to the payment for any services rendered by an accountant, auditor, stenographer, or real estate appraiser retained by the Administrator pursuant to § 68A-7B(9).
(3)
Within 60 days after the completion of proceedings before the Administrator on an application for a rent increase filed pursuant to § 68A-7B or § 68A-8, the Gloucester Township Housing Authority shall apply any balance remaining in the escrow account as payment for the services of any accountant, auditor, stenographer or real estate appraiser whose professional services were utilized by the Administrator. If there remains any balance, it shall be refunded to the applicant. If a deficit in the escrow account occurs due to unpaid bills for any accountant, auditor, stenographer or real estate appraiser, then the applicant shall post such additional escrow needed to bring the balance to zero; no rental increase granted, in the event there is a deficit balance in the escrow account, shall be effective until such time as the deficit is fully paid.
This chapter, being necessary for the protection of the health, safety and welfare of the Township of Gloucester, its inhabitants and citizens, shall be liberally construed to effectuate the purposes thereof.