This article shall be known and cited as the
"Mobile Home Park Rent Stabilization Ordinance of the Township of
Howell."
As used in this article, the following terms
shall have the meanings indicated:
AVAILABLE FOR RENT TO TENANTS
Fit for rental and habitation as defined by the statutes,
codes and ordinances in full force and effect in the State of New
Jersey, County of Monmouth and Township of Howell, and occupied or
unoccupied and offered for rent.
BASE RENT
The lawful rent in effect for the mobile home and/or mobile
home park space on October 1, 1984, together with all subsequent base
rental increases granted by the Rent Control Board pursuant to this
article. The term "base rent" shall not include the cost of supplied
utilities or municipal service fees, nor shall it include any amounts
granted by the Rent Control Board for major capital improvements or
tax surcharges as defined in this article.
GROSS MAXIMIZED ANNUAL INCOME
The gross maximum potential rent roll less a maximum deduction
of 1 1/2% for vacancies and uncollectibles, or the actual sum of rents
collected, whichever amount is larger, and includes all income resulting
directly or indirectly from the operation of a property or building,
including but not limited to, all rent received or collectible, all
earnings from commissions, vending machines, deductions from security
deposits, late fees, pet fees, parking fees, and any and all other
fees or income derived from operation of the rental premises.
LANDLORD
The mobile home park operator, owner or other person leasing
a mobile home and/or a mobile home park space to a tenant.
LEASE
Includes any written or oral agreement pursuant to which
any person is permitted to occupy a mobile home and/or a mobile home
park space.
MAJOR CAPITAL IMPROVEMENT
A substantial addition to the mobile home park housing accommodations
such as would materially increase the rental value of the leased mobile
home and/or mobile home park space and which provides an additional
service or benefit to the residents of the park not previously accorded
them. The term does not include repairs or replacements which merely
maintain the mobile home park in efficient operating condition. In
determining whether a particular expenditure constitutes a major capital
improvement under this definition, the Rent Control Board shall consider
the following:
A.
The nature of the improvement.
B.
The extent and cost of the improvement.
C.
The additional service or benefit to the mobile
home park and to the residents' enjoyment thereof gained as a result
of the improvement.
D.
The degree of permanency of the improvement.
E.
Whether the park owner depreciated the cost
of the improvement over the useful life of the object on his tax return.
MOBILE HOME PARK
Any lot or parcel of land and premises where the owner, lessee,
or other person having control thereof shall offer mobile homes or
sites for mobile homes on a rental or lease or other basis.
MOBILE HOME PARK SPACE
That portion of a mobile home park rented or offered for
rent for the purpose of parking a trailer or positioning a mobile
home for living and dwelling purposes to one or more tenants or family
units, together with all the privileges, services, equipment, facilities
and improvements connected with the use or occupancy of such portion
of the property. Mobile home park spaces which are newly constructed
and rented for the first time are exempted, and the initial rent may
be determined by the owner. All subsequent rents will be subject to
the provisions of this article.
MOBILE HOME PARK SPACE-APPROVED
That portion of a mobile home park for which spaces have
been approved to be built by license or variance but which at the
time in question remains unimproved and unavailable for rent.
NET OPERATING INCOME
Gross maximized annual income less reasonable and necessary
operating expenses.
PERSON
Any natural person, or any partnership, limited partnership,
joint venture, association or corporation or other entity.
PREVIOUS TWELVE-MONTH PERIOD, PREVIOUS TWELVE-MONTH BASE RENT
or PREVIOUS YEAR
The twelve-month period two years immediately preceding an
application to the Howell Township Rent Stabilization and Control
Board. The failure to apply for an increase calculated under this
article based upon the previous twelve-month period or previous year
shall constitute a waiver of any earlier increase that could have
been requested, and no increase shall be permitted for any period
beyond the previous twelve-month period or year preceding application
to the Howell Township Rent Stabilization and Control Board; provided,
further, that as to any assessment error for any previous year, the
foregoing shall not apply if the landlord brings an application for
a tax surcharge before the Howell Township Rent Stabilization and
Control Board within 30 days of being advised of such error by the
Howell Township Tax Assessor.
REASONABLE AND NECESSARY OPERATING EXPENSES
All valid expenses incurred and paid by a mobile home park
owner that were reasonably necessary for the operation of the park
during the period reflected in income computed in accordance with
the provisions and limitations of this article. In computing reasonable
and necessary operating expenses the following limitations shall apply
in all cases:
A.
Expenses incurred by the sales of new or used
mobile homes shall not constitute a reasonable and necessary operating
expense.
B.
Operating expenses shall not include fines,
penalties, mortgage amortization (principal) payments, mortgage interest
payments or depreciation.
C.
Taxes shall be limited to amounts actually paid,
including those paid in escrow pending appeal. Taxes shall not include
the park owner's real estate taxes on his personal residence(s).
D.
Repairs and maintenance expenses shall not include
expenditures for major capital improvements as defined in this article.
Unusual or extraordinary expenses for repairs and maintenance shall
be prorated over the time period that the particular expense is not
expected to re-occur, not to exceed five years.
E.
Purchase costs for new equipment not qualifying
as a major capital improvement under this article shall be prorated
over the useful life of the item.
F.
Professional fees, including legal and accounting
expenses, shall be limited to actual costs for the day-to-day operation
of the park.
G.
Management expenses shall be limited to actual
services performed and paid for, including the resident manager's
salary, telephone expenses, postage, office supplies, stationery and
the value of the resident manager's mobile home site if said value
is included in gross income. In the case of self-management by a park
owner performing management duties from an on-site personal residence,
management expenses shall be allocated between monies expended in
the operation of the park and monies expended for the park owner's
personal and household expenses. In no event shall a fee for management
services exceed 5% of gross income.
REBATE
Any reimbursement received by or credited to a landlord for
any tax or utility charge paid by or assessed against him in connection
with the operation of a mobile home park, or any reduction in the
amount of any tax or utility charge or assessment a landlord is required
to pay in connection with the operation of a mobile home park.
RENT
Includes any charge or charges made, fixed, demanded or charged
for the use or occupancy of a mobile home or mobile home park space,
whether or not commonly known as rent, be it for a landlord or tenant-owned
mobile home.
REPAIR
The reconstruction or renewal of any part of an existing
mobile home park for the purpose of its maintenance.
SERVICE
Mailing to the home address by certified mail, return receipt
requested, or in-hand delivery certified to by affidavit, or an acknowledgment
of service executed by the person served, which affidavit or acknowledgment
of service must be retained in the records of the person causing service.
SUPPLIED UTILITIES
Trash removal, fuel, electrical, water and sewer services
supplied directly to the individual mobile home, and not to the common
areas of the park, for which services the landlord is responsible
to the supplier for payment.
TENANT
An individual who rents and/or occupies a mobile home and/or
mobile home park space.
Rent increases, as authorized by this article,
may be allowed only if the mobile home park substantially complies
with all existing state, county and local codes.
Where a mobile home park or any part thereof
is being operated in violation of municipal codes and where such violation
adversely affects habitability, any affected tenant(s) may apply to
the Board for a reasonable reduction in rent, commensurate with any
such effect on habitability; whereupon, the Board shall duly notify
the landlord and schedule the matter for a hearing. If, as a result
of such a hearing, the Board determines that a violation of a municipal
code exists and that such violation affects habitability, it may grant
a reasonable reduction in rent to the affected tenant, which rent
shall remain in effect until the landlord corrects the said violation(s).
Any rental income or additional charge increase
at a time other than at the expiration of a tenancy or termination
of a periodic tenancy shall be void, except where approved by the
Board in accordance with the provisions of this article. Any rental
income of additional charge increase in excess of that authorized
by the provisions of this article shall be void. Periodic tenancy
for the purposes of this article shall mean a tenancy that continues
from month to month or other recurring period until terminated by
landlord or tenant as provided by law.
A tenant shall be entitled to a rent reduction
from a landlord because of a decrease in the municipal property taxes
or cost of supplied utilities or any decrease in space fees or license
fees charged by the municipality. The reduction shall not exceed that
amount authorized by the following provisions:
A. Where the decrease consists of a decrease in the municipal
property tax due to aid received from the State Aid for Schools Fund
and where said decrease is subject to the provisions of Chapter 63,
P.L. 1976 (N.J.S.A. 54:4-62 et seq.), as may be amended from time
to time, the landlord shall make such rebate upon such terms as Chapter
63, P.L. 1976, provides.
B. Where the decrease consists of a decrease in the municipal property tax other than that decrease provided for Subsection
A above, the landlord shall divide the decrease in the present tax over the tax for the previous year by the total number of completed mobile home spaces in the mobile home park. The decrease each tenant is entitled to shall be a credit to rent in 12 monthly installments commencing September 1 of each year. Any tenant entitled to a rent decrease hereunder shall be served with a notice of the calculations involved in computing such reduction and the effective date of such reduction.
C. Where the decrease consists of a decrease in the cost
of supplied utilities, space fees or license fees, the landlord shall
divide the decrease in the present cost of supplied utilities, space
fees or license fees over the cost of supplied utilities, space fees
or license fees of the previous year by the total number of completed
mobile home spaces in the mobile home park to obtain the decrease
per space. The decrease each tenant is entitled to shall be a credit
to rent in 12 monthly installments commencing from the effective date
of said reduction. Any tenant entitled to a rent decrease hereunder
shall be served with a notice by the landlord of the calculations
involved in computing such reduction and the effective date of such
reduction.
[Amended 5-24-2011 by Ord. No. O-11-12]
A landlord shall be entitled to a rent surcharge
for any increase in municipal property taxes and sewer rates. Any
landlord seeking a surcharge for property taxes and sewer rates shall
serve the tenants with a notice at least 30 days prior to the date
on which said surcharge is to be effective, of the calculations involved,
include the property tax and sewer rates for the mobile home park
for the year immediately preceding the year for which the tax surcharge
and sewer rate is sought, and the increase in the present tax and
sewer rate over the tax and sewer rate for the preceding year divided
by the total number of completed mobile home spaces in the mobile
home park. The tax surcharge each tenant is liable for shall be paid
in 12 monthly installments commencing September 1 of each year. The
sewer charge each tenant is liable for shall be paid in 12 monthly
installments commencing 30 days after the landlord is notified of
the increase.
In any application or applications, or any portion or portions thereof, for a rent increase in any twelve-month period, under §
204-12A or
B, the Board shall consider the economic and financial hardship imposed on the tenant or tenants to which such increase or increases shall apply. The Board may order that the rent increase or increases be denied, in whole or in part, modified or implemented on a scheduled or staggered basis as the Board shall determine. This section may only be implemented upon the claim of a tenant or tenants to be affected by the rent increase application or applications that they will suffer unreasonably severe financial or economic hardship if the application or applications are granted, in whole or in part, and the burden of proof in establishing any unreasonably severe financial or economic hardship shall be on the tenant or tenants making such claim or claims. Nothing contained in this section shall be deemed to permit or require the denial of a just and reasonable rate of return under §
204-12A as determined by the Board.
A willful violation of any provisions of this
article or of a final decision or order of the Board, including but
not limited to the willful filing with the Board of any material misstatement
of fact, shall be punishable by a fine of not more than $500 or imprisonment
for not more than 90 days, or both in the discretion of the court,
for each day the violation continues. A violation affecting more than
one mobile home space shall be considered a separate violation as
to each mobile home space.