As used in this chapter, the following terms
shall have the meanings indicated:
In the case of the renewal of leases, shall mean the starting
date of the last renewal term. "Anniversary date" shall mean the date
that the lease is entered into or periodic tenancy commenced (oral
lease) and each yearly renewal date thereafter.
The actual legal monthly rental a tenant is paying for his
apartment or mobile home unit or space. At the time of this chapter,
if the present monthly rent being paid by a tenant is $280 and the
tenant is also paying a $20 a month tax surcharge, the existing legal
rent for the next permissible increase will be $280 and the next permissible
increase will be the increased percentage in CPI as set forth in 7.29.2b
x $280. Thereafter, the "existing rent" will be $280 plus any CPI
increases. The tax surcharge shall be separated from the rent and
not be included in the base rent.
Includes the portion of a structure 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, parking and garage facilities (whether optional
or mandatory), and improvements connected with the use or occupancy
of such portion of the property. Included are any building, structure,
mobile home, or land used as a mobile home park, rented or offered
for rent to one or more tenants or family units. Exempt from this
chapter are: motels, hotels and similar type buildings; commercial
buildings with regards to commercial rentals; and housing structures
owner-occupied with two units or fewer rental units. Housing units
newly constructed and rented for the first time are exempted, with
regards to tenants' first year rental; that is, the initial rent may
be determined by the landlord but all subsequent rents will be subject
to the provisions of this chapter.
Any consideration paid by the tenant or mobile home owner
or tenant for the use and occupancy of the rental property. All charges
that are considered mandatory for all tenants, including but not limited
to refurbishment fees and administrative fees, shall be considered
rent and shall be illegal, unless inclusive of all rents and meeting
the ceiling limitations of this chapter. Optional charges which are
chosen by tenants such as pet fees, pool fees, recreation fees, and
alike, shall not be inclusive of the definition of “rent”
as viewed by this Chapter. Enforcement fees or security fees such
as late fees, bounced check fees, legal fees and costs of court for
enforcement of breach of lease agreement and increases in security
deposit are also not considered rent for purposes of this Chapter.
Either certified mail, or regular mail or hand delivery acknowledged
by written receipt; or if the party refuses to claim or acknowledge
delivery, by regular mail.
The "Consumer Price Index for all urban consumers" for the
region of the United States, of which Eatontown, New Jersey, is a
part (i.e., the New York-East-New Jersey region) published periodically
by the Bureau of Labor Statistics, Unites States Department of Labor.
The housing space, mobile home park and dwelling are free
from all heat, hot water, elevator and all health, safety and fire
violations as well as 90% qualitatively free of all other violations
of the Eatontown Property Maintenance Ordinance,[1] hotel and multiple dwelling law, Mobile Home Park Ordinance
(mobile home units only).[2]
A.
Establishment of rents between a landlord and a tenant
in any dwelling or mobile home space shall hereafter be determined
by the provisions of this chapter. Any rental increase in excess of
that authorized by the provisions of this chapter shall be void.
B.
Upon proper notice at the expiration of a lease or
periodic tenancy, no landlord may request or receive an increase greater
than the percentage increase, if any, in the Price Index published
in the fourth month prior to the month in which the lease or periodic
tenancy terminates over the Price Index published in the sixteenth
month prior to the month of termination. The rent resulting from the
imposition of any increase provided hereunder may be rounded to the
nearest dollar with regards to the final step of calculation only.
Calculation of the CPI published shall be in the month it is published
not the month of designation, i.e., November CPI published in December
is December’s CPI. Calculation of percentages shall be calculated
out two decimal points only and then dropped not rounded. No landlord
shall request or receive more than one rental increase per year per
housing space or mobile home space unless said housing space or mobile
home space is decontrolled by a vacancy. By way of example, a rent
increase computed in accordance with the provisions of this section
shall be computed as follows:
|
EXAMPLE
| ||||
|
Assuming a lease or periodic tenancy expires
in April of 2005, use the CPI published in the fourth preceding month,
or December of 2004 (a. below). Take the CPI published in the sixteenth
month preceding the month of termination, or December of 2003 (b.
below) and subtract b. from a. To calculate the percentage change
in the CPI, take c. and divide it by b. (d. below).
| ||||
|
Next, multiply the current rent by the percentage
change in the CPI (e. below) and add to the current rent to arrive
at the new rent.
| ||||
|
a.
|
CPI published in December 2004
|
293.9
| ||
|
b.
|
CPI published in December 2003
|
-283.6
| ||
|
c.
|
Difference in CPI
|
10.3
| ||
|
d.
|
Percentage change in CPI 10.3 divide by 283.6
=
|
.03
| ||
|
e.
|
Permissible increase is $400.00 (current rent)
multiplied by .03 =
|
12.00
| ||
|
f.
|
New rent is (rounded to nearest dollar)
|
412.00
| ||
A.
Any landlord seeking an increase in rent shall, at least 60 days prior to the effective date of the increase, notify the tenant of the calculations involved in computing the increase, including the Price Index at the respective dates as required in § 256-6 the allowable percentage increase, the allowable rental increase, the previous year's base rent, and a certification by the landlord that the dwelling is in substantial compliance with the Municipal Property Maintenance Code,[1] Hotel and Multiple Dwelling law and Mobile Home Park Ordinance
(for mobile home units only).[2] Failure to comply with this provision shall result in
the rental continuing at old rent until proper notice is given.
B.
Any landlord seeking a rent increase, a lease renewal
or an agreement to extend or renew leases shall provide notice of
said action in writing and in duplicate to the tenant at least 60
days prior to the effective date of increase renewal, extension or
other action and further that no tenant shall be required to sign
any such rent increase notice, renewal or agreement to extend or renew
lease until such tenant has had the opportunity to review the documents
for a period of five business days.
A.
In the event that a landlord cannot receive a fair return after having received the increase provided in § 256-6, he may appeal to the Rent Leveling Board for increased rental. The Board may grant a hardship rent increase to meet this requirement. The landlord must provide evidence according to the standards recognized at law for determining fair return. The Board will rely upon the recognized standard that a landlord should receive a net operating income of at least 40% of the gross annual income after deducting reasonable and necessary operating expenses, in the absence of an adequate showing that utilization of this standard will result in an unfair return to the landlord. Operating expenses shall not include mortgage principal or interest payments, depreciation or amortization. Any hardship increase granted by the Board will take the place of the annual CPI increase and shall be equally prorated to all units within the structure 30 days after the decision of the Rent Leveling Board, provide that no increase shall take effect with regard to any tenant who has a written lease until the expiration of the lease unless the lease provides otherwise.
B.
Landlord may seek addition surcharges for major capital
improvements or services. To qualify for a major improvement surcharge,
a claimant must show a benefit to the tenant, in the form of improved
lifestyle, convenience, ease and/or security with regards to the capital
improvement in accordance with the applicable provisions of the Internal
Revenue Code and/or its regulation. The landlord must notify each
tenant of the total cost of the completed capital improvement or service,
the number of years of useful life of the improvement as claimed by
the landlord for purposes of depreciation for income tax purposes,
the cost of the improvement allocated on a pro rata basis to each
tenant based on either the total square footage of the tenant’s
occupied space to the total occupied square footage of the building
or apportioned on the basis of the tenant’s proportionate share
of the total monthly rental from the entire building, or in the case
of mobile home parks, square footage of the lot size of the mobile
home and the capital improvement surcharge the landlord is seeking
from each tenant. The landlord seeking a capital improvement or service
surcharge shall appeal for the surcharge to the Rent Leveling Board
who shall determine if the improvement is a major improvement and
if so, may permit such increase to take place and may direct that
the increase shall be collected in equal monthly payments spread over
the useful life of the capital improvement. If the increase is granted
it shall not be considered rental and calculated in cost of living
increases. In any event, no increase authorized by this section shall
exceed 15% of the tenant's rent.
C.
Prior to any such appeal to the Board provided for in Subsections A and B of this section, a landlord must post in the lobby of each building or if no lobby is present, in a conspicuous place in and about the premises a notice of the appeal setting forth the basis for the appeal. The notice must be posted for a least 15 days prior to the proposed date of appeal. He shall also send a separate notice by regular and certified mail return receipt requested to each tenant at least 15 days prior to the proposed date of the appeal. Landlord must also submit to the Board a certification from the Housing Department of Eatontown that the building and grounds are in substantial compliance with the municipal Property Maintenance Ordinance,[1] Hotel and Multiple Dwelling Law and with regards to mobile
homes the Mobile Home Park Ordinance.[2]
A.
There is hereby created a Rent Leveling Board within
the Borough of Eatontown. The Board shall consist of five regular
members and two alternate members. The members of the Board shall
be appointed by the governing body and their terms of office shall
be for a period of one year each, with each member serving without
compensation.
B.
Except as provided herein, the powers herein granted
to the Rent Leveling Board are advisory powers and its actions shall
be subject to review by the governing body of the Borough hereinafter
provided.
C.
The Board shall elect among themselves a Chairperson
at the first annual meeting of the Rent Monitoring Board which is
called. The Council shall appoint a paid Board Secretary and legal
counsel when needed. The Construction Code Official and Housing Inspector
may be called for specific reasons when needed by the Board and in
its discretion. The Board shall be subject to Open Public Meeting
Act.
D.
Members of the Rent Leveling Board shall be appointed
based on the following designations: one member as a tenant in an
Eatontown apartment complex; one member as a tenant in a mobile home
park; one member who is designated as a landlord representative from
one of the apartment complexes or mobile home parks in the Borough
of Eatontown. The balance of the membership of regular members shall
be designated as citizens at large within the Borough of Eatontown.
Alternate members shall be designated as citizens at large.
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 chapter, including but not limited to the following:
A.
To issue and promulgate such rules and regulations
as it deems necessary to implement the purposes of this chapter, which
rules and regulations shall have the force of law until revised, repealed
or amended by the Board in the exercise of discretion, providing that
such rules are filed with the Borough Clerk.
B.
To supply information and assistance to landlords
and tenants to help them comply with the provisions of this chapter.
C.
To hold hearings and adjudicate applications from
landlords for additional rent and surcharges.
D.
To hold hearings and adjudicate applications and complaints
from tenants for reduced or improper rentals. The Board shall give
both landlord and tenant reasonable opportunity to be heard before
making any determination.
E.
Upon application the Board may in its discretion issue
written advisory opinions as to any issue of jurisdiction on any future
potential matter. The opinion shall not be binding but shall be advisory
in nature and provide guidance for future actions.
Both landlord and tenant may appeal in writing
the findings of the Board to the governing body within 20 days from
the date of the determination. The Council shall hold a hearing on
the record before the Board. Procedures for appeal and costs shall
be determined in the Rules and Regulations of the Board. The cost
and responsibility for transcripts shall be set forth in the Board’s
Rules and Regulations.
A.
In the event a tax appeal is taken by the landlord
and the landlord is successful in the appeal and the tax is reduced,
the landlord shall remit and tenant shall receive 50% of the reduction
as applied to its tax portion, after deducting all expenses incurred
by the landlord in prosecuting the appeal, within 45 days of receipt
by the landlord of the monies or the crediting of such monies against
the landlord's outstanding taxes. The landlord shall notify each tenant
of such tax reduction and of the calculations involved in computing
the tenant's credit, including the property tax for the dwelling place
or mobile home space before the appeal, the reduced property tax for
the dwelling place or mobile home space after the appeal, the number
of square feet of all housing space in the dwelling or mobile home
space, the tax decrease per square foot of housing space or mobile
home space, the number of square feet occupied by the tenant or mobile
home space tenant, the credit to which the tenant is entitled and
how it is being credited. The landlord shall provide the Board in
writing with a detailed list of the items of expense incurred by him
in prosecuting the tax appeal.
B.
A tenant who has resided in housing space or mobile
home space for less than the entire tax year to which a reduction
pertains (hereinafter "tax year") shall be entitled to receive a percentage
of the tax refund pertaining to his housing space which percentage
shall be equal to the percentage of the tax year the tenant resided
in the housing space or mobile home space.
C.
With respect to any tenant who is entitled to a tax
refund but whose whereabouts are unknown, the landlord shall, within
45 days after receipt by him of his tax refund or the crediting of
such refund against outstanding taxes, deposit the tenant's portion
in a bank account maintained by the landlord.
D.
With respect to a tenant whose whereabouts are unknown,
the landlord shall make a reasonable effort to ascertain such tenant's
whereabouts, and refund to him any amounts to which he is entitled.
If, after two months from the date of the landlord's receipt of his
tax refund or the crediting of such refund against outstanding taxes,
he has been unable to ascertain the whereabouts of any tenant entitled
to a refund, the landlord shall apply such tenant's portion of the
tax refund for general maintenance purposes and/or making improvements
to the common elements of the dwelling.
E.
Within two months after the expiration of the two-month
period during which a landlord must attempt to locate a tenant whose
whereabouts is unknown, the landlord shall expend, and shall provide
details to the Board pertaining to the expenditure of, funds for general
maintenance purposes and/or for making improvements to the common
elements.
During the term of this chapter, the landlord
shall maintain the same standards of service, maintenance, furniture,
furnishings and equipment in the housing space, mobile home space
and park, dwelling and common areas as it provided or was required
to do by law or lease or tenancy at the date the lease or tenancy
was entered into or started. In the event the landlord fails to provide
such services, tenants may petition the Board for a rent reduction.
The owner of housing space or dwelling or mobile
home space being rented for the first time shall not be restricted
in the initial rent he charges. Any subsequent rental increases, however,
shall be subject to the provisions of this chapter.
Should a lease entered into between the landlord
and tenant prove to be in conflict with a rent leveling ordinance,
the ordinance shall take precedence.
[Amended 6-24-2015 by Ord. No. 08-2015; 11-10-2022 by Ord. No. 22-2022]
Any housing space, dwelling, apartment or mobile home which
is presently vacant or which becomes vacant during or at the end of
any lease term shall be permanently decontrolled, therefore allowing
the landlord to set the rent at market rate. Once any housing space,
dwelling, apartment or mobile home becomes decontrolled pursuant to
this section, such unit shall no longer be afforded the rights or
remedies set forth in this chapter, including the right to seek relief
from the Rent Control Board. The landlord of any housing space, dwelling,
apartment or mobile home park shall provide to the Borough Housing
Officer the address or other identifying information of all rent-controlled
units under their ownership or control on January 1 of each year.
Any person found guilty of violating the requirement to provide the
information set forth in this section to the Borough Housing Officer
shall be subject to a fine not exceeding $2,000. Each and every day
that such violation continues shall be considered a separate violation.
Any tenant filing a complaint with the Rent
Leveling Board against the landlord shall be required to sign a complaint
and appear before the Board to give testimony as requested by the
Board. The landlord and/or his representative upon due notice shall
be required to appear and give testimony. Any tenant appearing before
the Board may select someone to represent them who need not be an
attorney provided the person representing the tenant is authorized
to do so in writing. Any person representing a tenant except an attorney
is not permitted to charge a fee for his service. Any landlord who
is incorporated or is an LLC must be with legal counsel if appearing
on a landlord instituted complaint.
When the Rent Leveling Board shall request of
any landlord any information with respect to any rental unit such
information shall be provided to the Rent Leveling Board within 15
days of such request. Failure to report the information required within
the 15 days specified shall result in the rental space remaining controlled
to the same extent and under the same conditions as it had not been
vacant and any rental charged the new tenant in excess of that controlled
rate shall be void.
All landlords shall be required to have at all
times a copy of the Rent Leveling Ordinance posted in the lobby or
other conspicuous place in the premises and provide a copy to all
tenants on the initial lease or tenancy or all existing tenants written
60 days of enactment of this chapter.
This article being necessary for the welfare
of the Borough and its inhabitants shall be liberally construed to
effectuate the purposes thereof.
