[HISTORY: Adopted by the Township Committee
of the Township of Pittsgrove 5-27-1987 by Ord. No. 9-1987; amended in its entirety 12-30-1991 by Ord. No.
19A-1991. Subsequent amendments noted where applicable.]
Whereas the Township Committee of Pittsgrove
Township in Salem County hereby finds that a housing state of emergency
exists within mobile home parks located within the Township; whereby
the Township Committee seeks to prevent any possible exorbitant rental
increases resulting from any housing shortage while allowing the landlords
and park operators a fair and equitable return upon their investment,
and in accordance with the police powers granted to the Township Committee
of the Township of Pittsgrove in order to protect and promulgate the
health, safety and welfare of the citizens of the Township of Pittsgrove,
the Committee has the authority to establish and maintain and does
hereby establish and enact the within chapter for rent stabilization;
including the appointment of a Board to administer this chapter and
penalties for the violation thereof.
This chapter shall be known and cited as the
“Mobile Home Park Rent Stabilization Ordinance of Pittsgrove
Township.”
As used in this chapter, the following terms
shall have the meanings indicated:
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 Salem and Township of Pittsgrove, and occupied or
unoccupied and offered for rent.
The lawful rent in effect for the mobile home space on October
1, 1987, together with all subsequent base rent increases granted
by the Rent Control Board pursuant to this chapter. The term “base
rent” shall not include any of the following:
The cost of supplied utilities.
The base cost of trash removal, being the cost
to remove trash to a park operator one year prior to the date of the
park operator's application for annual increase.
Space and pad fees.
Property taxes.
The amount granted by the Rent Control Board
for major capital improvements or other pass-throughs as provided
by this chapter for the preceding year.
The CPI-U regional and selected cities for Philadelphia,
Pennsylvania and New Jersey, as published by the Bureau of Labor Standards
of the United States Department of Labor using the 1982-1984 equals
one-dollar index.
All income resulting directly or indirectly from the operation
of a mobile home park, including income which could have resulted
from residential vacancies, unless such vacancies resulted from market
conditions. In addition, it shall include, but not be limited to,
all rent, whether from residential or nonresidential transactions,
received or collectible, including any rent from less-than-arm's-length
transactions; the landlord's share of interest for administrative
expenses on security deposits; all earnings from commissions, laundry
equipment and supplies or vending machines; earnings from the sale
of gas or LP fuel; deductions from security deposits; entrance fees,
hookup fees, late fees, pet fees, parking fees, charges for use of
recreational areas and amounts received by the landlord as a result
of real estate tax appeals; and income from rebates, tax surcharges,
capital improvement surcharges, rent surcharges and hardship surcharges
for the year immediately prior to the date the application is filed.
In any case where a housing unit is occupied in whole or in part rent
free, the full rental value shall be considered the legal rent. All
income, as defined above, shall be computed on an annual basis.
Includes all facilities which are vital to the use of the
premises for residential purposes, including but not limited to all
facilities pertaining to sanitation, security and safety, privacy
and any other condition that contributes to the tenants' peaceful
enjoyment of their mobile home.
The mobile home park operator, owner, lessor, sublessor,
receiver, trustee, executor, assignee or other person receiving or
entitled to receive rent for the use or occupancy of the entire mobile
home park or a portion thereof, including an individual mobile home
and/or a mobile home park space.
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.
A substantial addition to the mobile home park accommodations
such as would materially increase the rental value of the mobile home
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 an efficient operating condition. In determining whether a particular
expenditure constitutes a “major capital improvement”
under this section, the Rent Control Board shall consider the following:
The nature of the improvement.
The extent and cost of the improvement.
The additional service or benefit to the mobile
home park and to the residents' enjoyment thereof gained as a result
of the improvement.
The degree of permanency of the improvement.
Whether the park owner depreciated the cost
of the improvement over the full useful life of the object on his
tax return.
Compliance with those requirements which have an effect upon
the functional operation of the mobile home park facility.
Any lot or parcel of land and premises where the owner, lessee
or other person having control thereof shall offer sites for mobile
homes on a rental or lease or other basis.
That portion of a mobile home park rented or offered for
rent for the purpose of parking a mobile home or modular home for
living and dwelling purposes to one or more tenants or family units,
together with all privileges, services, equipment, facilities and
improvements connected with the use or occupancy of such property
or portion of property. “Mobile home park spaces” or pads
which are newly constructed and rented for the first time are exempted,
and the initial rent may be determined by the owner during the first
two years of rental operation.
The gross annual income less reasonable and necessary operating
expenses (see “reasonable and necessary operating expenses”).
Any natural person or any partnership, limited partnership,
joint venture, association or corporation or other entity.
All valid expenses incurred and paid by a mobile home park
owner or operator that were reasonably necessary for the operation
of the park during the comparable period used for the gross annual
income. In computing reasonable and necessary operating expenses,
the following limitations shall apply in all cases:
Expenses incurred in furtherance of the sales
of new or used mobile homes shall not constitute a reasonable and
necessary operating expense.
Operating expenses shall not include fines,
penalties, mortgage amortization (principal) payments, mortgage interest
payments or depreciation.
Taxes shall be limited to amounts actually paid,
including those paid into escrow pending appeal. Taxes shall not include
the park owner's real estate taxes on his personal residence(s).
Repairs and maintenance expenses shall not include
expenditures for major capital improvements, as defined in this chapter.
Unusual or extraordinary expenses for repairs and maintenance shall
be prorated over the time period that the particular expense is not
expected to reoccur, but not to exceed five years.
Purchase costs of new or replacement equipment
not qualifying as a major capital improvement under this chapter shall
be prorated over the useful life of the item.
Professional fees, including legal and accounting
expenses, shall be limited to the actual cost of the services necessary
for the day-to-day operation of the park.
Management expenses shall be limited to actual
services performed in the operation of the mobile home park and paid
for by the landlord, to include 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 the
gross income. In the case of a park managed by the owner performing
management duties from an on-site personal residence, the management
expenses shall be allocated between the moneys expended in the operation
of the park and the moneys expended for the owner's personal household
expenses.
Expenses shall also include real estate taxes;
water and sewer and septic charges; advertising expenses necessary
to effect full occupancy of the park; dues for professional organizations;
heating fuel; electricity; water; garbage and trash removal and disposal;
security and grounds maintenance; any other taxes, permits or fees
which the Board, in its discretion, shall deem appropriate; and insurance
charges for fire, liability, compensation and other appropriate insurance
coverage, but excluding FHA, VA or other mortgage insurance.
Any reimbursement received by or credited to the landlord
for any tax or utility charge paid or assessed against the landlord
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.
Includes any charge or charges made, fixed, demanded or charged
for the use or occupancy of a mobile home and/or mobile home park
space, whether or not commonly known as “rent.”
The reconstruction or renewal of any part of an existing
mobile home park for the purpose of its maintenance.
Mailing to the home address by regular mail, supported by
certification or in-hand delivery certified 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.
That as a quantitative matter, any violation that may exist
is only de minimis in amount.
Trash removal, fuel, electrical, water (including water testing
mandated by any state or local public agency) 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.
A mobile home owner who rents and occupies a mobile home
park space and/or a tenant who rents both a mobile home and park space
in combination.
Free market conditions shall determine the rental structure
of mobile home and pad rights sold outside of the vested tenancy period.
However, under no circumstances shall the impact of the free market
conditions be permitted to cause an increase in rental of the mobile
home park space greater than 25% of the previous lot rental. Vacancy
decontrol shall allow mobile home park space rental fees to automatically
float to reflect current market conditions subject to the twenty-five
percent cap herein described.
Any tenant selling his or her mobile home during the period
from January 1, 1992, to December 31, 1992, shall pass on to his or
her buyer a protected tenancy status for that period that will vest
in the buyer rights to the seller's rent-control-governed monthly
rental fee subject to any additional assessments or pass-through charges
as allowed by the Rent Control Board.
A.
There is hereby created a Rent Stabilization and Control
Board within and for Pittsgrove Township. The Board shall consist
of five members and three alternates, all of whom shall be appointed
by the Mayor and confirmed by the Township Committee. Two initial
members shall be appointed for one-year terms, two for two-year terms
and one for a three-year term. Subsequent members shall serve three-year
terms, and vacancies shall be filled for the balance of any term.
There shall be no compensation for the Board members.
B.
The membership of the Board shall be as follows: One
regular member shall be an owner or manager of a mobile home park
located in Pittsgrove Township. One member shall be a tenant of a
mobile home park located in Pittsgrove Township. The three remaining
members of the Board shall be residents of Pittsgrove Township who
are neither owners nor managers of a mobile home park nor tenants
of such a park. The Chairman/woman shall be chosen by the Rent Control
Board from among the nonlandlord/tenant members. The Rent Control
Board shall also designate a Vice Chairman/woman and shall appoint
a Secretary to the Board. Each of said terms shall be deemed to commence
on the first day of July for the first year of their respective appointments,
and subsequent appointees shall begin their terms on that date. There
shall be three alternates to serve in the absence or disqualification
of a corresponding member of the Board, one of whom shall be a park
owner or manager and one of whom shall be a tenant in a Township mobile
home park, but neither the alternate landlord nor tenant member of
the Board shall be of the same mobile home park as the regular member.
The remaining alternate shall be a resident of Pittsgrove Township
who is neither a landlord, manager nor tenant of a mobile home park.
The three alternate members shall be appointed annually by the Mayor
and confirmed by the Township Committee and shall also serve without
compensation.
C.
There shall be appropriated in the annual budget of
Pittsgrove Township such sum as may be determined by the Township
Committee to be necessary for the purpose of administering this chapter,
and the Board shall submit specific appropriations for inclusion in
the Township annual budget. The Township Committee may appoint a financial
consultant when needed to assist the Board. The Rent Control Board
will appoint an attorney to assist the Board in its duties. The salaries
and terms of the attorney and the Board Secretary shall be determined
by the Township Committee.
A.
The Rent Control 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.
(1)
To adopt such rules and regulations, including bylaws,
as it deems necessary for its own government not inconsistent with
this chapter or with law.
(2)
To issue and promulgate such rules and regulations
as it deems necessary to implement the purposes of this chapter, such
rules and regulations being subject to the approval of the Township
Committee.
(3)
To supply information and assistance to landlords
and tenants and to assist them in complying with the provisions of
this chapter and to provide to applicants forms of application, including
instructions as to what documentation is required in support of those
applications.
(4)
To hold hearings and to adjudicate applications from
landlords for additional rental income or charges as hereinafter provided.
(5)
To hold hearings and to adjudicate applications from
tenants for reductions in rental income or charges as herein provided.
(6)
To administer oaths, to examine witnesses and by subpoena
to compel the attendance and the testimony of witnesses and the production
of books, papers, documents or other tangible things, pursuant to
the provisions of the County and Municipal Investigations Law (N.J.S.A.
2A:67A-1 et seq.). The Board shall give both the landlord and the
tenant reasonable opportunity to be heard before making any determination
and shall base its determination on the reasonable and credible evidence
before it, although the strict rules of evidence shall not apply.
The Board shall render a written decision in the form of a resolution,
clearly stating the amount of increase, if any, granted, the effective
date of said increase and the reasons for the Board's decision. The
Board shall issue its findings, in writing, not more than 60 days
after filing of a complete application in accordance with this chapter.
B.
The Board may delegate one or more of its members
to set up a prehearing conference with the landlords and interested
tenants for the purpose of reviewing the application, establishing
stipulations, determining issues in controversy and expediting a hearing.
A.
The Board shall meet and conduct hearings at least
once a month at a time and place to be set by the Board unless there
shall be no pending business before the Board. Special meetings may
be called by the Chairman/woman or a majority of the members (not
alternates) upon at least 72 hours' notice to all members and alternates,
in writing.
C.
A quorum shall be necessary to conduct business and
shall consist of a simple majority of the full membership of the Board.
D.
Each regular member shall participate in all meetings
of the Board and shall have one vote when present.
E.
Each alternate member can fully participate in all
meetings of the Board but shall only have a vote if the member of
his or her class is absent or disqualified.
F.
A member or alternate may vote on matters already
in progress upon certification, in writing, that he or she has reviewed
all prior proceedings in the matter and is familiar therewith.
G.
A verbatim recording shall be taken of all meetings
of the Board, copies of which shall be produced and supplied upon
request and upon payment of the actual cost of transcribing and copying
the number of copies requested.
H.
Accurate minutes of all meetings and decisions shall
be kept by the Recording Secretary and filed monthly with the Township
Clerk.
The following fee schedule for petitions and
applications to the Rent Control Board is established. The fees shall
be payable to the Township Clerk of Pittsgrove Township.
A.
Each tenant petition for rent reduction, as herein provided, shall be accompanied by a filing fee as indicated in Chapter A120, Fees, which is nonrefundable.
B.
Each landlord petition for rent increase shall be accompanied by a filing fee as indicated in Chapter A120, Fees, which is nonrefundable. In the event that a landlord files for a rent increase based on capital improvements, as provided herein in § 75-14, or a hardship increase, as provided herein in § 75-17, his application shall be accompanied by a consulting escrow fee in the amount as indicated in Chapter A120, Fees. This consulting escrow fee shall be utilized to pay for the services of a licensed or certified public accountant at rates to be fixed by the Township Committee, who shall review the landlord's submissions and determine the accuracy and propriety of the depreciation schedules, interest payments and methods of calculation as submitted in support of the landlord's petition. Escrow fees which are deposited in excess of the amount required for the consulting services shall be refunded to the landlord. In the event that additional moneys are needed above the escrow fee indicated above for the service by the consultant, the applicant shall be informed of the amount needed, and that amount shall be deposited with Pittsgrove Township, but in no case shall the fee be higher than as indicated in Chapter A120, Fees.
Any owner or tenant who is affected by any action
or decision of the Rent Control Board may appeal the final decision
or order of said Board to the Superior Court of New Jersey, as provided
by law, and shall have no right of appeal to the Township Committee.
[Amended 9-13-2005 by Ord. No. 9-2005; 3-14-2006 by Ord. No.
4-2006]
A willful violation of any of the provisions
of this chapter or of a final resolution 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, upon conviction, by one
or more of the following: imprisonment in the county jail for any
term not exceeding 90 days; or by a fine of no less than $100 and
not more than $2,000; or by a period of community service not exceeding
90 days. A violation affecting more than one mobile home space shall
be construed as a separate violation as to each separate mobile home
space so affected.
At or within 60 days of the expiration of a
lease for one or more years or less or the termination of a periodic
tenancy of one or more years or less, a landlord may apply on an annual
basis for an increase in rents which, at the discretion of the Board,
may be granted at an amount set by the Board but shall not exceed
the percentage increase between the consumer price index which existed
120 days (four calendar months) prior to the expiration of the lease
or twelve-month tenancy and the consumer price index which existed
120 days (four calendar months) prior to the date on which the landlord
and tenant entered into the expiring lease agreement. In the case
of a periodic tenancy whose lease term shall have been less than one
year, the increase, if any, shall be determined by applying the increase
in the CPI during the one-year period as outlined above [i.e., increase
in the CPI for a period of 16 months prior to the expiration of the
tenant's lease and ending at the period four months prior to the expiration
of the tenant's lease]. An increase under this section shall not be
permitted less than 12 months after any prior annual increase or hardship
increase. An increase, based on the CPI as explained herein, may be
up to but shall not exceed 6%.
A.
Sixty days prior to any proposed increase under this
section, the landlord shall serve in accordance with this chapter
upon the tenants who may be affected and upon the Rent Control Board
a notice setting forth:
(1)
A certification that the names and addresses of the
affected tenants have been attached to the application and are on
file with the Township Clerk.
(2)
A certification that a full list of the lot numbers
of the affected tenants has been attached to the application and is
on file with the Township Clerk.
(3)
The inception date and expiration date of the lease
or periodic tenancy.
(4)
The proposed date of increase.
(5)
The base rent for the unit, as defined under this
chapter.
(6)
A clear and precise explanation of the items and amounts
excluded from the existing gross rent in determining the base rent
and the dates of any adjustments pertaining thereto (including calculations
which show how the landlord arrived at these figures.)
(7)
The amount of any increase sought in accordance with
the consumer price index and as provided by the Board Secretary.
(8)
The dollar effect of said increase on the base and
gross rent.
(9)
The location where notices of the date, time and place
of public hearings shall be posted about the landlord's establishment
and a certification that such a notice has been posted advising the
tenants that an application has been filed and that it is likely that
the application will be considered at the Board's next monthly meeting
and the date, time and place of the next meeting which follows the
filing of the application.
(10)
A certification that the park is in substantial material
compliance with state, county and municipal regulations and that no
substantial maintenance, upkeep, licensing or unabated health problems
exist; provided, however, that insubstantial or nonmaterial violations
resulting in delay in the issuance of a license shall not disqualify
a landlord's application hereunder. The landlord shall further obtain
certification from the Township Tax Collector that no more than two
quarters of real estate property taxes are still due at the time of
the application being filed and certification from the Township Clerk
that all pad fees due at the time of the application have been paid.
(11)
A certification from the park operator that he or
she is in compliance with N.J.S.A. 46:8-28f, which provides:
[Amended 9-13-2005 by Ord. No. 9-2005]
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The name, address and telephone number of an
individual representative of the record owner or managing agent who
may be reached or contacted at any time in the event of an emergency
affecting the premises or any unit of dwelling space therein, including
such emergencies as the failure of any essential service or system,
and who has the authority to make emergency decisions concerning the
building and any repair thereto or expenditure in connection therewith
and shall, at all times, have access to a current list of building
tenants that shall be made available to emergency personnel as required
in the event of an emergency.
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B.
The Rent Control Board, upon receipt of any application
which is deemed to be incomplete, shall return the application to
the park operator for completion, and any time limitations imposed
by this chapter upon the Board shall not be effective until the Board
has received a complete application.
C.
It is intended that a park operator shall receive
annually the percentage of increase in the consumer price index as
described above, contingent upon meeting the requirements as stated
above.
D.
The Board Secretary, upon receiving the application,
shall notify the applicant of the scheduled public hearing date so
that the applicant can meet the requirements set forth in Subsection
B(9) above. The landlord shall certify, in writing, at or before the
public meeting, the fact that the public notices were actually posted.
A.
A landlord is entitled to pass through to tenants
its increases in property taxes from those levied in the immediately
preceding tax year, provided that the landlord has complied with the
provisions of this subsection.
(1)
No increase shall be permitted if the landlord is
delinquent in more than two quarters of real estate tax payments.
The landlord shall notify the tenants and the Rent Control Board not
less than 60 days prior to the proposed increase or pass-through by
regular mail or by personal service, each supported by certification
or affidavit and which shall contain the following information:
(a)
The tax bill for the current year and the paid
tax bill for the preceding year; or proof showing the amount and payment
of the prior year's property taxes and proof showing that no more
than two quarters of taxes are due and owing.
(b)
Certification.
[1]
A certification by a duly qualified civil engineer,
licensed land appraiser or other suitable expert, which clearly indicates
the parts of the property that are:
[a]
Areas undeveloped and presumed not part of the
current operation of the residential uses of the mobile home park
with a clear statement of what portion of the tax assessment is based
on that area.
[b]
Areas developed and used for the personal purposes
of the owner and/or management, including residences and personal
and nonoperational storage facilities, with a clear statement of what
portion of the tax assessment is based on those areas.
[c]
Areas developed and used for commercial or other
nonresidential operations, with a clear statement of what portion
of the tax assessment is based on those areas.
[d]
Areas developed, used and available for use
to the mobile home residents, including pads and common areas which
shall include all areas and facilities reasonably considered to be
incidental to the operation of a mobile home park, with a clear statement
of what portion of the tax assessment is based on those areas.
[2]
In the event that the landlord certifies, by
submission of a written affidavit, that the conditions referred to
in Subsection A(1)(b)[1][a], [b], [c] and [d] above remain unchanged
from the last approved certification, the submissions for Subsection
A(1)(b)[1][a], [b], [c] and [d] for that application shall incorporate
the documentation submitted in prior years.
(c)
Calculations showing the amount of increase
over the prior year's taxes and any ancillary proofs which demonstrate
that the property under consideration is within the area of the mobile
home park which is available for use of the mobile home residents.
(d)
Calculations which demonstrate the total amount
of tax increase for the area of the mobile home park which is available
for use of the mobile home residents divided by the total number of
mobile home spaces to indicate the annual amount to be passed through
to each tenant.
(e)
Calculations dividing the annual amount by 12
to indicate the amount the park operator is seeking to pass through
to each tenant on a monthly basis.
(2)
A landlord must submit to the Rent Control Board all
documentation reflecting that any real estate evaluation increase
is being appealed. Should the Rent Control Board approve the requested
application for a real estate tax pass-through, the landlord shall
furnish to the Rent Control Board, within 60 days after a decision
has been rendered by the Appeals Board, documentation stating the
Appeals Board decision. If the Appeals Board decision results in a
lowering of the landlord's real estate taxes, the landlord shall file
a request for a pass-through reduction of real estate tax charges
to the tenants retroactive to and to coincide with the date of reduction
approved by the Appeals Board.
B.
A landlord is entitled to pass through to tenants its increases in supplied utilities, as defined in § 75-3, provided that the landlord has complied with the provisions of this subsection. No increase shall be permitted if the landlord is delinquent in more than two quarters of real estate tax payments. The landlord shall notify the tenants and the Rent Control Board not less than 60 days prior to the proposed increase or pass-through by regular mail or personal service, supported by certification or affidavit and which shall contain the following information:
(1)
The invoice for the utility or service at issue showing
the increase along with an invoice showing the costs to the landlord
prior to the increase and/or a notice from the utility or service
provider that an increase will take effect.
(2)
A statement as to what date the utility or service
rate increase became or becomes effective.
(3)
A statement by the landlord that the rate increase
is not to be a temporary rate increase by the supplier.
(4)
Calculations showing the amount of increase over the
prior year's cost and any ancillary proofs which demonstrate that
the utility or service under consideration is within the area of the
mobile home park which is available for use of the mobile home residents.
(5)
Calculations which demonstrate how the utility or
service increase is to be divided or apportioned by or among the total
number of mobile home spaces to indicate the annual amount to be passed
through to each tenant.
(6)
Calculations dividing the annual amount by 12 to indicate
the amount the park operator is seeking to pass through to each tenant
on a monthly basis.
A landlord shall be entitled to pass through
to its tenants increases in governmental charges and/or space, pad
and licensing fees from those imposed by the municipality in the immediately
preceding year, provided that the landlord has complied with the provisions
of this section. Increased costs for owner-supplied utilities, as
mandated by public authority or law and which are payable to the State
of New Jersey, County of Salem or Pittsgrove Township, shall be applicable
to this section.
A.
No increase shall be permitted if the landlord is
delinquent in payment of the previous year's municipal charges, including
taxes, space and pad fees and licensing fees.
B.
Any increase in governmental charges and for space and pad fees and licensing fees shall be determined by using the rate of the prior calendar year and then calculating the increase per unit using generally the guidelines as set forth in § 75-11 of this chapter.
C.
The landlord shall notify the tenants and the Rent
Control Board 60 days prior to the proposed increase by regular mail
or by personal service, each supported by certification or affidavit,
such notice to include the following:
(1)
The calculations which demonstrate the increase over
the prior year of governmental charges, pad fees or licensing fees,
including exhibits which demonstrate the cost per unit as a result
of the mandated charges, including exhibits which demonstrate the
increased cost to the park operator.
(2)
A statement that the landlord is not delinquent in
the payment of the previous year's governmental charges, space, pad
or licensing fees.
D.
Governmental charges, space or pad fees and licensing increases allowable under this section shall be paid by the tenant in 12 equal monthly installments which shall commence at the time of the annual increase pursuant to § 75-10.
E.
The Board shall schedule a public hearing with respect
to the proposed increase within 30 days of the landlord's application
or at its next monthly meeting, and the landlord shall post a notice
regarding the public hearing, as provided in § 75-10B(9)
of this chapter.
A.
All mobile home park tenants residing within a park
as of the effective date of this amended chapter, January 1, 1992,
shall be granted vested tenant status. Such status shall remain in
effect until January 1, 1993. If during the period of the tenant's
vested status the tenant sells and transfers his/her mobile home and
limited right to a space within the park to a purchaser for value
in an arm's-length transaction, said purchaser shall assume the selling
tenant's vested tenancy status as it pertains to rent control for
the duration of the vested tenancy (until January 1, 1993).
B.
Purchasers of mobile homes or pad rights within the park after January 1, 1993, shall take such mobile homes from their sellers, subject to the pad rents established pursuant to the vacancy decontrol provisions set forth herein pursuant to §§ 75-10, 75-11, 75-13, 75-14, 75-15, 75-16, 75-17 and 75-21.
C.
Vacancy decontrol. The purchasers of mobile homes, pursuant to Subsection B, shall have their pad rental fee determined pursuant to the fair market rent as established by the Rent Control Board, together with and in accordance with the timetable and procedures specified in § 75-10 of this chapter; provided, however, that the determination of the fair market rent shall be exclusively based upon the submission of written opinions by qualified experts. The credibility and qualifications of experts shall remain within the reasonable discretion of the Rent Control Board.
A.
A landlord may seek a pass-through surcharge for major
capital improvements, as defined in this chapter, to cover the cost
of a completed major capital improvement.
(1)
A landlord may also seek a preliminary determination from the Board as to whether a contemplated capital improvement or any part thereof will be considered a major capital improvement under this chapter. The application for a preliminary determination must include the information mandated in Subsection B(1) through (7) below; provided, however, that factors related to the costs of proposed capital improvements may be estimated based on the submission of a licensed architect or engineer. For those capital improvement projects for which preliminary determination has been made, the scope of criteria for review shall be limited to compliance and adherence to the preliminary determination; any portion of said capital improvement project which was not included in the preliminary determination shall be subject to review de novo pursuant to this section.
(2)
A landlord may not be entitled to receive a major
capital improvement surcharge which shall be necessitated as a result
of deterioration of the park or other deterioration beyond ordinary
wear and tear or failure of the landlord to perform ordinary repair,
replacement or maintenance.
B.
A landlord shall file an application as defined below,
including all supporting documents, and a public hearing shall be
required for all major capital improvement surcharges or preliminary
determinations by the Board. At least 45 days prior to the public
hearing, the landlord shall notify each tenant in the park by regular
mail or personal service, supported by certification or affidavit.
This notice shall include the following information:
(1)
A detailed description of the improvement.
(2)
The total cost of the completed improvement.
(3)
The number of years of useful life claimed by the
landlord for the major capital improvement and the basis therefor.
(4)
The total number of spaces or pads contained in the
park for which the surcharge income is sought.
(5)
If the park consists of different sizes or classes
of spaces, the ratio of the different classes of spaces based on an
average base rent.
(6)
The apportioned surcharge the landlord is seeking
from each tenant space or class of tenant space in accordance with
this section.
(7)
The identification of the locations where notices
of any public hearing will be posted.
C.
Notice of the public hearing shall include the date,
time and place and shall be posted in conspicuous locations at least
five days before the hearing.
D.
Not less than five days prior to any hearing, all
supportive documentation for the surcharge shall be presented to the
Secretary of the Rent Control Board for public inspection.
E.
The capital improvement surcharge approved by the
Board shall be apportioned among all units or spaces unless, in the
discretion of the Board, the improvement benefits units in varying
degrees according to the amount of living space, in which case the
Board shall equitably apportion the cost of the improvement on the
basis of space or pad size. In the event that the improvement is equally
beneficial to all dwelling units regardless of the living area or
pad size, then the cost of the improvement shall be equally surcharged
to all such spaces.
F.
Any surcharge granted hereunder shall not exceed 10%
of the tenant's base rent in effect at the time the surcharge is granted.
The surcharge paid by each tenant shall be paid in monthly installments
and shall be 1/12 of the tenant's total yearly surcharge. The payment
shall be made during the useful life of the improvement as determined
by the Board. A surcharge granted by the Rent Control Board shall
not be considered rent for the purposes of computing automatic rent
increases and shall not be included in a base rent for any other purpose.
A.
In the event of a successful tax appeal by a landlord
resulting in a reduction of the municipal property tax, the tenant
shall receive 50% of the net tax refund after deducting all reasonable
expenses incurred by the landlord in prosecuting the appeal. The tenant's
share in subsequent years shall be 50% of the gross tax reduction.
B.
The proportionate share of each individual tenant
is to be determined on the basis of the number of mobile home spaces
or pads.
C.
The landlord shall, within 30 days of the receipt
of a tax refund, identify for each tenant and the Rent Control Board,
in writing:
D.
If the tenant is still residing in the dwelling or
complex, then the tenant's proportionate share of the refund shall
be deducted from his next month's rent. A tenant who is no longer
residing in the complex is entitled to his proportionate share of
the tax refund. The landlord shall so inform him by sending him a
notice to his forwarding address. Money unclaimed after 60 days shall
revert to the Township.
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 the space fees or
license fees charged by the municipality or for the existence of municipal
code violations, as provided for in Subsection B hereof.
A.
The reduction shall not exceed that amount authorized
by the following provisions:
(1)
Where the decrease consists of a decrease in the municipal
property tax due to aid received from state aid for school funds and
where said decrease is subject to the provisions of P.L. 1976, c.
63 (N.J.S.A. 54:4-6.2 et seq.), as may be amended from time to time,
the landlord shall make such rebate upon such terms as P.L. 1976,
c. 63, provides.
(2)
Where the decrease consists of a decrease in the municipal property tax, other than that decrease provided for in Subsection A(1) above, the landlord shall divide the decrease in the present tax over the tax for the previous year by the total number of mobile home spaces in the park. The decrease each tenant is entitled to shall be a credit against the tenant's rent in 12 monthly installments. 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. The notice shall be served on the Board and the tenants within 60 days of notification to the landlord of the reduction.
(3)
In the event that 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 for the previous year by the total number
of mobile home spaces in the mobile home park to obtain the decrease
per space. The decrease which each tenant is entitled to receive shall
be a credit against rent in 12 monthly installments. Notice of said
decrease shall be served on the Board and the tenants within 45 days
of the notice to the landlord of the decrease, and the credit against
rent for any such decrease shall be implemented within 60 days of
the landlord's receipt of a notice of reduction.
(4)
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 or tenants 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 the 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 or tenants,
which rent shall remain in effect until the landlord corrects said
violation or violations.
B.
An application for reduction based on habitability
shall include:
(1)
A clear statement of the reasons for the basis of
the claim for a reduction with mathematical calculations of all amounts
relevant to the requested reduction.
(2)
A detailed list of all mobile home spaces affected
by the alleged violation.
(3)
A certification that the application is being made
in good faith and not for the purpose of retaliating for or delaying
any increases otherwise provided for under this chapter.
It is expressly recognized that an efficient
landlord is entitled to a just and reasonable rate of return from
the operation of his property. To that end, a landlord is permitted
to make application to the Board for rental increases on the basis
that rents allowed by this chapter prevent the landlord from receiving
a just and reasonable rate of return. Such rental increases shall
be allowed only on the basis of the formula set forth in this provision,
which formula shall be the exclusive formula for determining a just
and reasonable rate of return. Upon application duly made and pursuant
to the requirements of this chapter, the Board may grant to the park
owner a rental increase upon his showing that his reasonable and necessary
operating expenses for the last full fiscal year exceeded 60% of his
gross annual income (60/40 Rule). If the Board is satisfied that such
a showing has been established and that the landlord has conducted
the operation of his park and business in a reasonable and efficient
manner, then the Board may grant a rental increase sufficient to restore
reasonable and necessary operating expenses to 60% of the gross annual
income.
A.
Contents.
(1)
Every application under this section shall be served
on the Board and on all tenants and shall include the following:
(a)
The name and address and telephone number of
the landlord.
(b)
The name and address of the attorney, if any,
and the accountant who prepared the application on behalf of the landlord.
(c)
A certified rent list indicating thereon all
actual and allowable rents, as well as the rental sought in the application
from each tenant.
(d)
A written explanation of the basis for the requested
increase.
(e)
A detailed financial report setting forth the
justification for the requested increase, including income statements,
balance sheets, cash-flow analysis, statements of charges from previously
submitted applications, statements of projected expenses and revenues
and such other documents as may be helpful to or requested by the
Board. The articles contained in this subsection shall be sworn to
by a licensed public or certified public accountant if the same shall
be requested by the Board.
(f)
A copy of the termination notice to the tenants
to be used if the increase is granted.
(g)
A copy of the notice to be forwarded to the
tenants notifying them of the hearing.
(h)
A detailed description of each category of tenant-occupied
space or area available for rent to tenants, including all amenities
and square footage.
(i)
A statement setting forth what the applicant
believes to be the reasonable rental for each unit.
(2)
Each petition for rent increases in accordance with
this section shall be accompanied by the necessary application fee
and deposit for the cost of consulting services as required by this
chapter. The consulting escrow moneys shall be utilized to pay for
the services of financial consultants, who shall review the landlord's
submission, determine its acceptability as to form and shall then
prepare a detailed accounting and financial review, and/or for a real
estate appraiser who shall review the property for determination of
value and prepare a report for consideration by the Board. Any amount
of the escrow fee in excess of that required for consulting services
shall be refunded to the landlord.
B.
Items to be submitted under specific subsections in
support of an application for hardship are as follows:
(1)
Actual increased annual operating expenses and costs
of operations:
(a)
The application will require submission of financial
data indicating the increase in the reasonable and necessary operating
expenses for the most recent twelve-month period, said period ending
no earlier than 60 days from the date of the application.
(b)
Documents in support of this section shall include
such costs as repairs, maintenance, taxes, administration and salaries,
as well as projected expenditures for the next twelve-month period,
repairs and maintenance reasonable and necessary to maintain the premises
in good condition and real estate taxes actually paid, including sums
in escrow pending appeal.
(2)
Just and reasonable rate of return on owner's investment.
The application should include the following:
(a)
A calculation of the return on historic costs
for the most recent twelve-month period, said period ending no earlier
than 60 days prior to the date of application and also for the entire
period since purchase of the park by the current owners.
(b)
A calculation of the projected return on historic
costs for the next twelve-month period.
(c)
The investment basis, including a schedule of
the original investment and the additional investments and decreases
in investments by the present owners.
(d)
A schedule of the receivables from or payable
to the owners.
(e)
Disclosure of any affiliation with any other
company, including a summary of intercompany transactions during the
period under consideration (prior and the projected 12 months).
(f)
The estimated income tax savings that are expected
to result to the parent company or to the owners if the company is
operating as a partnership or tax option corporation under Subchapter
S as a result of the entity generating a net operating loss for tax
purposes that would be available to the parent company or to the owners.
(g)
A schedule of rates of return on their investments
having comparable risks.
(h)
A statement demonstrating that repairs and maintenance
costs were reasonable and necessary to maintain the premises in a
good condition.
(i)
A statement demonstrating that real estate taxes
are actually paid, including sums in escrow pending appeal.
A.
Upon receipt of an application for hardship increase,
the Recording Secretary of the Board or the Board itself caused, through
its financial consultant, a preliminary review to indicate whether
the application is complete and whether it meets the requirements
of this chapter. Within 15 days of the submission of the application,
the Recording Secretary or financial consultant shall notify the applicant
whether the application is deemed complete and proper or improper.
If improper, the Recording Secretary or financial consultant shall
return the application to the applicant with specific instructions
as to what corrections or additions need to be made to the application
to complete the proper scheduling of a hearing.
B.
Within 20 days of the submission of an application
under this section, unless the same has been returned as improper
or incomplete, the Recording Secretary shall establish a hearing date
and notify the applicant of the same. Such hearing date shall be no
later than 60 days from the date of the submission of the application.
At least 15 days prior to the date scheduled for the hearing, the
applicant must cause proper service to be effected upon all tenants
in units to be affected by the rental increase sought by the landlord.
The notification to the tenants must include the date of the hearing,
the proposed monthly increase to each tenant and a notice that the
supporting documents for the proposed increase are available for review
during business hours at the office of the applicant and by prearrangement
at the Township Municipal Building. A copy of the notice and affidavit
of mailing or service shall be filed with the Rent Control Board prior
to commencement of the hearing.
C.
Clear and legible copies of all documents upon which
the applicant intends to rely in support of the hardship application,
including such additional documents as requested by the Board, will
be filed with the Secretary of the Board at the time of the filing
of the original application or within five working days of a request
from the Board for additional or supplemental information.
A.
If the Board, after full hearing, determines that
the landlord is entitled to a hardship increase in accordance with
the 60/40 Rule, the amount of such increase shall be entered in the
form of a resolution and served upon the landlord who shall serve
notice of the total award and the amount applicable as rent to each
tenant under the provisions of this chapter.
B.
A landlord may not apply for a hardship increase more
than once during any twelve-month period.
C.
A hardship increase, if awarded, shall be considered
rent and shall be utilized in calculating any subsequent base rents
or automatic increase.
A.
Notwithstanding the 60/40 Rule as applied in § 75-20, it is acknowledged that in the most extreme of circumstances, a landlord or park operator who avails himself or herself of all available hardship and other increases and efficiently operates his or her park may still be unable to make a profit on his or her investment. A park operator who has properly sought and received all available increases under the preceding sections of this chapter may, upon notice to the Board and affected tenants, as required in § 75-18, apply to the Board for extraordinary increase to the extent that the landlord or park operator shall be permitted an increase in rents to effect a profit. The granting of such extraordinary relief shall be in the sole discretion of the Board and shall be based on the enumerated information as required for hardship increase in § 75-18 and such other documentation as the landlord shall choose to submit to document his failure to achieve profit.
B.
The award of any such extraordinary increase shall
be predicated on the Board's finding that the park has been operated
in a proper and efficient manner and that, despite such operation,
the operator has demonstrated a legitimate, as opposed to technical
or self-created, failure to achieve a profit.
Any rental income or additional charge or increase
in excess of that authorized by the Board and the provisions of this
chapter shall be void.
This chapter, being necessary for the health
and welfare of the citizens of Pittsgrove Township, shall be liberally
construed to effectuate the purposes thereof.
