[HISTORY: Adopted by the Township Council
of the Township of Franklin as indicated in article histories. Amendments
noted where applicable.]
[Adopted 9-13-1973 by Ord. No. 647; amended
in its entirety 12-15-1983 by Ord. No. 1155 (Ch. 193, Art. I, of
the 1990 Code)]
For the purposes of this article, the following
words and phrases shall have the meanings respectively ascribed to
them by this section:
Fit for habitation as defined by relevant Township ordinance;
also occupied or unoccupied and offered for rent.
Any building or structure rented or offered for rent to two
or more tenants or family units and containing kitchen, sleeping and
sanitary facilities within the dwelling unit.
[Amended 10-8-1991 by Ord. No. 1672]
Consists of one or more rooms which are arranged, designed
or used as living quarters for one family only.
Any individual or more persons living together in a dwelling
unit.
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.
The consumer price index (all items) for the Metropolitan
New York City area, published periodically by the Bureau of Labor
Statistics, United States Department of Labor.
Dwellings offered for rent in newly rehabilitated condition
for the first time after September 13, 1973, if the cost of rehabilitation
exceeds 1 1/2 of either the undepreciated cost or the fair market
value of the dwelling prior to rehabilitation.
The payable rent charged and received for the housing space or dwelling over the previous twelve-month period, exclusive of any of the following: all real property taxes and any costs for utilities if the same are provided by the landlord, and any increase for major capital improvements as permitted by §§ 294-13 and 294-14.
[Amended 4-11-1989 by Ord. No. 1478]
The minimum rate charged by the Township for water and sewer.
[Amended 10-8-1991 by Ord. No. 1672]
Exempt from this article are motels, hotels
and similar type buildings; any building or structure or portion thereof
rented for commercial use; single-family dwellings; and two-family
dwellings in which the owner resides in one unit. Rehabilitated dwellings
rented for the first time are exempted, and the initial rent can be
determined by the landlord. All subsequent rents will be subject to
the provisions of this article. Also exempt from this article are
housing units which have been constructed and occupied on or after
January 1, 1982. In this respect, the word "occupied" shall mean the
issuance of a certificate of occupancy for said unit.
A.
Establishment of rents between a landlord and tenant
to whom this article is applicable shall hereafter be determined by
the following provisions. At the termination of a lease of a periodic
tenant, no landlord may request or receive any increase in the rental
income and additional charges for that dwelling or housing space from
any tenant, new or continuing, which is greater than a combination
of the following:
(1)
Any increased cost to the landlord for utilities.
(2)
An amount not to exceed 3 1/2% of the rental
income for each twelve-month period for which the premises has been
rented in all instances where, under said rental, the landlord supplies
the heat at no charge to the tenant and an amount not to exceed 3%
of the rental income for each twelve-month period for which the premises
has been rented in all instances where the heat is paid for by the
tenant, either directly or through an additional charge by the landlord.
[Amended 6-9-1987 by Ord. No. 1342; 8-8-1989 by Ord. No. 1511; 3-11-1997 by Ord. No. 2005]
B.
The landlord shall notify the Rent Leveling Administrator
by certified mail, return receipt requested, in writing, at least
60 days prior to the effective date of the proposed increase, setting
forth therein in detail the calculations involved in computing the
increase. A copy of said notice shall be mailed to the tenant's residence
by regular mail and by certified mail, return receipt requested. Delivery
is considered to have been made upon the date of the initial certified
mailing. A tenant may be notified by other than certified mail only
if the landlord or his representative shall serve the tenant personally,
or by leaving at the usual place of abode of the tenant with a member
of the household of 14 years of age or more, the notice provided for
herein, and the landlord or his representative shall certify such
service by affidavit and return said affidavit in his records.
[Amended 3-11-1997 by Ord. No. 2005; 2-24-2009 by Ord. No.
3813]
C.
Upon receipt of said notice and where the increase sought hereunder is due to increased cost for utilities, the Administrator shall schedule a hearing on said increase, and the landlord shall post in the lobby in each building, or if no lobby is present in a conspicuous place in or about the premises, a notice of said hearing date at least five days prior to the proposed date of the hearing. Any increases sought based upon the increase permitted by the terms of Subsection A(2) of this section shall not require a public hearing.
[Amended 2-24-2009 by Ord. No. 3813]
D.
No landlord may request or receive any increase in rental income or additional charges or surcharges except as provided by this article and until such time as the landlord shall have obtained approval, in writing, from the Rent Leveling Administrator for said increase, except where said increase is pursuant to Subsection A(2) hereof, in which case no such written approval from the Rent Leveling Administrator shall be required.
[Amended 2-24-2009 by Ord. No. 3813]
E.
For a periodic tenant whose lease term shall be less
than one year, said tenant shall not suffer or be caused to pay any
rent increase in the next twelve-month period which exceeds the increase
permitted herein for the preceding twelve-month period.
F.
Vacancy decontrol.
(1)
Notwithstanding any limitations upon permissible rent
increases under any other provision of this article, upon the voluntary,
uncoerced vacation of any apartment for which rent increases are controlled
by this article, the landlord shall have the right to fix the rent
for such vacated apartment at such a sum as he deems appropriate.
(2)
In the case of a tenant moving to different premises within the same complex, the maximum permissible increase that said tenant shall be permitted to suffer shall be as set forth in Subsection A hereof.
[Amended 2-24-2009 by Ord. No. 3813]
(a)
In order for the landlord to qualify for the
vacancy decontrol rent increase, the landlord shall first be required
to file a written statement with the Rent Leveling Administrator,
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 housing space unit and that the vacation of such unit was a voluntary
act on the part of the tenant. Such noncoercion certification shall
not be required in order for the landlord to qualify for the vacancy
decontrol increase if:
[1]
The increase does not exceed the total of all
permissible increases authorized by any other provisions of this article;
[2]
The tenant has moved from the unit without notice
to the landlord;
[3]
The unit has been vacated pursuant to a judicially
mandated eviction; or
[4]
The tenant has refused to sign such certification
and the landlord has certified that he has provided the tenant with:
[a]
Notice in the lease or notice at the inception
of the lease or notice by personal service within 30 days of the passage
of the vacancy decontrol provisions of the tenant's rights under the
vacancy decontrol provisions of this article; and
[b]
Notice to the tenant of the tenant's rights
under the vacancy decontrol provisions of this article when the tenant
notifies the landlord that he is vacating the dwelling unit or 60
days prior to the termination of the lease, whichever is earlier.
(b)
The aforesaid notices shall prominently advise the tenant that if he alleges harassment or pressure, he should notify the Franklin Township Rent Leveling Administrator, and a hearing will be held on the allegation. A hearing pursuant to Subsection F(2)(a)[4] above shall be held before the Rent Leveling Administrator upon at least seven days' notice to the public and the vacating tenant. The decontrol provisions of this section shall only apply to dwelling units which are physically vacated subsequent to the effective date of this section.
G.
Upon vacation of any apartment hereafter, the landlord
shall file a statement with the Rent Leveling Administrator certifying
to the Board:
[Amended 2-24-2009 by Ord. No. 3813]
(1)
The apartment and building numbers of such dwelling
unit.
(2)
The rent paid by the vacating tenant.
(3)
The maximum rent increase which would be permissible
under the other provisions of this article.
(4)
The rent agreed to by the new tenant for such apartment.
(5)
That the vacation of such apartment was the voluntary
act of the vacating tenant and that such vacation was not the result
of landlord harassment or pressure upon such vacating tenant.
Any rental income increase at a time other than
the expiration of a lease or termination of a periodic lease shall
be void. Any rental income increase in excess of that authorized by
the provisions of this article shall be void.
Any landlord seeking an increase in rent shall
notify the tenant in detail of the calculations involved in computing
the increase and shall include the allowable rental increase, the
amount of rent before and after the proposed increase and the effective
date of the proposed increase. The failure of the landlord to provide
the tenant with this information shall make any increase void, and
the tenant shall recover any increase paid.
A landlord may seek a tax surcharge from a tenant
because of an increase in municipal property taxes. The tax surcharge
shall not exceed that amount authorized by the following provisions:
A.
The landlord shall divide the increase in the present
property tax over the property tax of the previous year by the number
of square feet in the dwelling to obtain the tax increase per square
foot. The tenant shall not be liable for a tax surcharge exceeding
the tax increase per square foot multiplied by the total square feet
occupied by the tenant.
B.
Any landlord seeking a tax surcharge shall notify
the tenant of the calculations involved in computing the tax surcharge,
including the present property tax for the dwelling, the property
tax for the dwelling for the previous year, the total number of square
feet in the dwelling, the tax increase per square foot, the number
of square feet occupied by the tenant, the maximum allowable surcharge
and the effective date of the proposed increase. The failure of the
landlord to provide a tenant with this information shall make any
increase void, and the tenant shall recover any increase paid.
C.
The tax surcharge for which each tenant is liable
shall be paid in 12 monthly installments.
D.
The tax surcharge shall not be considered rent for
purposes of computing cost-of-living rental increase.
E.
In the event of a tax appeal, the portion of a tenant's
tax surcharge not being paid by the landlord to the government will
be held in a separate interest-bearing account. In the event that
the appeal is successful and taxes are reduced, the tenant shall receive
the reduction, plus accrued interest as applied to its tax portion,
after deducting all reasonable expenses incurred by the landlord in
prosecuting such appeal. Payment to the tenant will be made in the
form of a credit against the next monthly rental or a check payable
to the tenant.
A tenant shall be entitled to a rent reduction
from a landlord because of decrease in the municipal property taxes.
The tax reduction shall not exceed that amount authorized by the following
provisions:
A.
The landlord shall divide the tax decrease in the
present property tax over the property tax of the previous year by
the number of square feet in the dwelling to obtain the tax decrease
per square foot. The tenant shall not be entitled to a reduction because
of a tax decrease exceeding the tax decrease per square foot multiplied
by the number of square feet occupied by the tenant. The tax decrease
each tenant is entitled to shall be a credit to rent in 12 monthly
installments.
B.
Any tenant entitled to a rent decrease because of
a reduction of municipal property taxes shall be notified by the landlord
of the calculations involved in computing the reduction, including
the present property tax for the dwelling, the property tax for the
dwelling for the previous year, the total number of square feet in
the dwelling, the tax decrease per square foot, the number of square
feet occupied by the tenant, the amount of rent decrease each tenant
is entitled to and the effective date of the proposed decrease.
A.
There is hereby created a Rent Leveling Board within
the Township of Franklin.
B.
The Board shall consist of five members and two alternate
members. The Township Council shall also appoint a Council Liaison.
Not more than one of the members shall be a landlord, or, if no landlord
shall be willing to be so appointed, then, in such event, the Council
may appoint a person who is employed in some capacity by a landlord.
Further, not more than one tenant shall serve as a regular member
of said Board.
[Amended 5-24-1984 by Ord. No. 1169; 3-9-2010 by Ord. No.
3868]
C.
The Chairperson shall be chosen by the membership
from among the members.
D.
All members shall be appointed by the Township Council.
E.
Terms.
(2)
The alternate members shall be appointed for terms
of one year.
(3)
Any subsequent appointment shall be for a three-year
term, except for alternate members, who shall serve for one-year terms.
(4)
Members shall serve their respective terms and until
their successors are thereafter appointed and qualified.
[Added 2-24-2009 by Ord. No. 3813]
(5)
The
Council Liaison shall be appointed for a one-year term.
[Added 3-9-2010 by Ord. No. 3868]
F.
No member shall hold any other elective office or
position in the Township.
G.
The Board shall have the services of an attorney,
who shall be appointed by the Township Council for a one-year term
ending June 30 of each year, and the services of a secretary.
H.
The members of the Board shall serve without compensation,
but the salary of the attorney shall be fixed by resolution of the
Township Council.
[Added 2-24-2009 by Ord. No. 3813]
There is hereby established a Rent Leveling
Administrator within the Township of Franklin. The Rent Leveling Administrator
shall be appointed by the Town Manager, to serve in this position
and, under the direction of the Rent Leveling Board, shall have the
powers set forth in this chapter, including but not limited to the
following:
A.
To supply information and assistance to landlords
and tenants and to bring together tenants and landlords in informal
conferences and suggest resolutions of conflicts between them, in
order to help them comply with the provisions of this chapter.
B.
To remedy violations of this chapter by ordering rebates
and increases and bringing appropriate legal charges as provided in
this chapter.
C.
To accept, process and render decisions regarding:
(1)
Complaints from tenants of illegal rental increases.
(2)
Applications from landlords for rental increases.
(a)
Any rebate ordered by the Rent Leveling Administrator
shall be considered a penalty against the landlord if said rebate
is not made to the tenant within 30 days of the service of a final
determination by the Administrator. The Administrator may authorize
a reduction in rent until such time as the overpayment is reimbursed.
The tenant may bring an action in the Municipal Court for the collection
of this penalty after the time allowed.
(b)
In case of failure by a tenant to pay rents
as determined by the Administrator or the Board, the landlord may
resort to the appropriate legal remedies for nonpayment of rent.
D.
Obtain, keep and maintain all available records, data
and information necessary to the enforcement, construction and application
of this article.
E.
Exercise all powers necessary and appropriate, to
the maximum extent permitted by law, to carry out and execute the
purposes of this article.
F.
Decisions of the Rent Leveling Administrator shall
be final unless, within 30 days of the decision, an aggrieved party
appeals to the Rent Leveling Board.
[Amended 2-24-2009 by Ord. No. 3813]
The Rent Leveling Board is hereby granted and
shall have and exercise, in addition to other powers herein granted,
all the powers necessary and appropriate to carry out and execute
the purposes of this article. However, the Board shall have no jurisdiction
to consider any matter not expressly set forth in this article. The
powers of the Board shall include but shall not be limited to the
following:
A.
To hold hearings and adjudicate applications from
tenants for reduced rentals as hereinafter provided.
[Amended 2-24-2009 by Ord. No. 3813]
The hearings of the Rent Leveling Board shall
be opened to the public and shall not be held before 7:00 p.m. prevailing
time. Upon receipt of an appeal for a hearing regarding a decision
of the Rent Leveling Adminstrator pursuant to this article, the Secretary
of the Board shall furnish copies thereof to each Board member and
set a hearing date. The appellant shall give 10 days' written notice
of such hearing to all interested parties, including all landlords
and tenants affected by said appeal and shall file proof of service
of notice with the Board. Said hearing will be conducted at the earliest
regularly scheduled meeting or at a special date to be fixed by the
Board. The Chairman of the Rent Leveling Board or, in his absence,
the Acting Chairman shall have the power to issue subpoenas to any
parties in dispute for the attendance of witnesses and the production
of records and may administer oaths and take testimony with regard
to any dispute brought before and heard by the Board. Failure to respond
to a subpoena issued or the failure to produce records when so demanded
shall constitute a violation of the provisions of this article. The
Rent Leveling Board shall hold a hearing within 30 days of the receipt
of notice required herein from a landlord or tenant. The Board shall
render its decision within 30 days after the close of all such hearings.
The decision of the Rent Leveling Board shall be final.
[Amended 2-24-2009 by Ord. No. 3813]
Any tenant may appeal to the Rent Leveling Administrator
any computation by the landlord under the provisions of this article.
[Amended 2-24-2009 by Ord. No. 3813]
The power of enforcement of the provisions of
this article shall be vested in the Rent Leveling Administrator, and
the Department of Community Development shall be responsible for the
administration and coordination with the Rent Leveling Board.
A.
A landlord may apply to the Rent Leveling Administrator for an increase in rent due to hardship, and the Rent Leveling Administrator may cause, on such application and after notice to tenants and a hearing as provided in § 294-3C hereof, to grant a rent increase upon and to the extent of a showing by the landlord that the net operating income (total income less operating expenses exclusive of depreciation and debt service) from the building is less than a fair net operating income. The net operating income shall not be considered less than fair if it is 35% or more of the annual income.
[Amended 4-11-1989 by Ord. No. 1478; 2-24-2009 by Ord. No.
3813]
B.
The adjustment under this section shall be in such
amount as is necessary to bring the net operating income from the
building to a fair net operating income as defined hereinabove. Any
increase granted pursuant to this section shall be considered rent
for the purpose of computing permitted rental increases under this
article. Any increase granted hereunder shall be divided by the total
square feet of the dwelling to determine the increase per square foot,
and the tenant shall be liable for an amount equal to the cost per
square foot multiplied by the total square feet occupied by the tenant.
C.
The Rent Leveling Administrator shall complete all
hearings and render its determination within 75 days of the filing
of an application hereunder by a landlord.
[Amended 2-24-2009 by Ord. No. 3813]
D.
As part of such application, the landlord shall be
required to present to the Administrator an audit report showing all
income and expenses for the dwelling or housing space on which the
landlord seeks such increase, certified to by a certified public accountant.
In addition thereto, if the landlord shall maintain rent cards, such
cards shall be made available to the Administrator for examination
and review.
[Amended 2-24-2009 by Ord. No. 3813]
A.
A landlord may seek a capital improvement surcharge
for any completed major capital improvement. The landlord shall notify
such tenant of the total cost of the completed capital improvement,
the number of years of useful life of the improvement as claimed by
the landlord for purpose of depreciation for income tax purposes,
the average annual cost of the improvement, the need for such improvement,
the benefit to the tenant and the effective date of the proposed increase.
B.
In calculating the capital improvement surcharge,
the cost of the capital improvement shall be divided by the number
of years of useful life of such improvement to determine the average
annual cost of such improvement. The landlord shall divide the average
annual cost of such improvement by the total square feet of the dwelling
to determine the capital improvement surcharge per square foot, if
applicable. The tenant shall not be liable for a capital improvement
surcharge exceeding the surcharge increase per square foot multiplied
by the total square feet occupied by the tenant, if applicable. The
capital improvement surcharge applicable to each tenant shall not
exceed 10% of his rental, unless such improvement is mandated by local
ordinance, and shall be payable in 12 monthly installments.
C.
Any capital improvement surcharge of any hardship
rental increase, as provided in this article, shall not be considered
rent for the purposes of computing cost-of-living rental increases
unless so specified by the Rent Leveling Administrator.
[Amended 2-24-2009 by Ord. No. 3813]
A.
During the term of this article, the landlord shall
maintain the same standards of service, maintenance, furniture, furnishings
or equipment in the housing space and dwellings as he provided or
was required to do by law or lease at the date the lease was entered
into.
B.
A tenant or tenants who are not receiving substantially
the same standards of service, maintenance, furniture, furnishings
or equipment may have the Rent Leveling Board determine the reasonable
rental value of the housing space or dwelling in view of this deficiency
after first notifying the landlord of their intention to do so.
[Amended 2-24-2009 by Ord. No. 3813]
In the event that a tenant cannot meet his monthly
rental during a term of any lease entered into after September 13,
1973, because of an adverse change in his financial condition, he
may appeal to the Rent Leveling Administrator to have his lease voided
at the discretion of the Administrator and have 50% of any deposit
or escrow refunded.
The owner of a newly constructed housing space,
rehabilitated dwelling or dwelling being rented for the first time
after adoption of this article shall not be restricted in the initial
rent he charges. Any subsequent re-rental or rental increases, however,
shall be subject to the provisions of this article.
Any provision of a lease or other agreement
whereby any provision of this article is waived shall be deemed against
public policy and shall be void.
[Amended 2-24-2009 by Ord. No. 3813]
Any tenant may question a rent increase or increase
of sums other than rental and has the right to see the landlord's
supporting documentation. This right also extends to the Rent Leveling
Administrator.
A landlord shall not take retaliatory action
against any tenant who exercises any rights conferred on him under
this article. "Retaliatory action" means action taken by the landlord,
including undue or unusual inconvenience, violations of privacy, harassment,
reduction in quality or quantity of services or any form of threat
or coercion. This information must be contained in all increase notices.
Failure of the landlord to provide this information may make such
notice void.
[Amended 2-24-2009 by Ord. No. 3813]
A landlord who makes proper notice of an increase
to a tenant and is subsequently delayed by the Rent Leveling Administrator
or governing body from effecting such increase on the date stipulated
in the notice shall be entitled to recover the sum he was entitled
to as if the increase became effective as stipulated in the notice.
A tenant who has paid an increase that is subsequently
determined to be void shall be entitled to recover such sums paid.
Such sum can be returned as a credit to the tenant's rent or paid
by check.
[Amended 2-24-2009 by Ord. No. 3813]
In the event that the Department of Housing
and Urban Development, pursuant to any regulations duly adopted by
said Department, shall determine that this decision of the Rent Leveling
Administrator jeopardizes the Department's economic interest in a
project and thereby asserts exclusive jurisdiction over the regulation
of rents of such project, the Department and/or landlord shall submit
to the Rent Leveling Administrator copies of all financial data supplied
to the Department by the landlord and upon which date such decision
of the Department was based.
[Amended 3-11-1997 by Ord. No. 2005]
A.
A violation of any provision of this article shall
be punishable by a fine not to exceed $500 and for each subsequent
offense in any calendar year by a fine not to exceed $1,000.
B.
If after 30 days' notice to the landlord, which notice
shall be given to the landlord by regular mail and certified mail,
return receipt requested, to the last known address of the owner,
any fine shall remain unpaid, the fine so charged shall forthwith
become a lien upon the property and shall become and form part of
the taxes then next to be assessed upon the property and shall be
collected and enforced according to law.
This article, being necessary for the welfare
of the Township and its inhabitants, shall be liberally construed
to effectuate the purposes thereof. It shall not apply to housing
units which have been constructed and occupied on or after January
1, 1982.
[Amended 4-11-1989 by Ord. No. 1478; 2-13-1990 by Ord. No.
1547; 12-12-1995 by Ord. No. 1929; 4-9-1996 by Ord. No. 1950; 12-12-2000 by Ord. No. 3170; 2-24-2009 by Ord. No. 3813]
This article is to take effect in accordance with the applicable law and shall remain in full force and effect until December 31, 2005. On September 30 of each year, the Rent Leveling Administrator shall forward a written report to the Township Council with recommendations for revisions and/or extension of this article, including recommendations for revision to the provisions of § 294-3A. At that time, the Township Council shall review said report and take such action as it deems appropriate.
Any rent increases as imposed after June 30,
1976, in excess of the increase as permitted under the terms of this
article are hereby declared to be null and void as of the effective
date of this article.
During the course of the lawful eviction of
any tenant of any dwelling unit from such dwelling unit, no landlord
shall cause, suffer or permit, either himself or by the actions of
any servant and/or employee or any person effectuating an order of
eviction, the personal property, including but not limited to furniture,
clothing and appliances, of any tenant being so evicted to be placed
or caused to be placed in an area not enclosed by a structure for
loading on a vehicle or vehicles which are present at the dwelling
unit at such time of removal and available for said property to be
immediately loaded therein.
[Adopted 3-8-1988 by Ord. No. 1385 (Ch.
193, Art. II, of the 1990 Code)]
The fees to be charged for the making and processing
of applications for protected tenancy status under the Senior Citizens
and Disabled Protected Tenancy Act[1] shall be as follows:
C.
If either party requests a certified shorthand reporter,
such party shall be responsible to secure and pay for such service.
[1]
Editor's Note: See N.J.S.A. 2A:18-61.22 et
seq.
