A landlord may apply to the Rent Leveling Board for a surcharge for
the installation of a major capital improvement.
A major capital improvement consists of a substantial change in the
housing accommodations which materially increases the rental value and provides
the tenants with a benefit or service which the tenants had not previously
enjoyed. Replacement of facilities, materials or equipment in order to maintain
the same level of service as previously provided shall not constitute a capital
improvement.
The landlord must apply for a capital improvement surcharge to the Rent
Leveling Board on the form provided by the Board. The following information
shall be supplied to the Rent Leveling Board:
A.
A description of the capital improvement.
B.
The total cost of the improvement.
C.
The number of years of useful life of the improvement.
D.
Copies of all permits necessary to perform the work for
installation or construction of the capital improvement.
E.
Proof that the improvement has been completed within
the previous 12 months.
F.
Copies of all bills which directly relate to the capital
improvement. All bills must be itemized.
G.
Copies of all canceled checks, which must correspond
to the bills cited above.
H.
If the improvement exceeds $5,000, proof of three legitimate
quotes on the capital improvement. If the lowest bidder was not contracted,
the landlord must have supporting documentation as to the reason the low bidder
was not employed.
I.
The rent roll for the current fiscal year.
Ten copies of this application must be filed and accompanied by a fee
of $20.
The landlord must make available to the tenants in the applicable building
all of the above information which is required by the Board.
[Amended 3-6-1990 by Ord. No. 1103]
The Secretary/Investigator of the Board shall reject and return all applications which do not meet the minimum requirements of § 235-41 of this article.
An application for rent adjustment for capital improvement shall be
made within 12 months after completion of the work. The landlord of record
is the only person allowed to apply for a capital improvement surcharge.
The Board shall hold a hearing on the landlord's application no
sooner than 30 days nor later than 120 days after receiving the application.
The Board shall make the following determinations:
A.
That the bills presented directly apply to the capital
improvement application.
B.
That the work done is a major capital improvement as
defined by this chapter.
C.
That the work was completed and was done in the twelve-month
time period required by this chapter.
D.
That the amount of the cost of such improvement is exclusive
of both interest and service charges.
E.
The number of years of useful life of the improvement.
The landlord shall file with the Rent Leveling Board a proposal as to
the payment of the capital improvement surcharge. The proposal shall provide
for payment of the surcharge over the useful life of the capital improvement.
The method of payment shall reflect the following:
A.
If the capital improvement benefits all housing spaces,
but in varying degrees according to the amount of living area of each housing
space, then the cost for the improvement shall be charged according to either
the number of rooms or the space in proportion to the total rentable area
in the building.
B.
If the capital improvement is equally beneficial to all
housing spaces, regardless of the living area within any housing space, then
the cost of the improvement shall be charged according to the number of housing
spaces within the dwelling.
C.
Increases in rent resulting from a capital improvement
surcharge shall be limited to 5% of the yearly base rent determined by the
United States Department of Housing and Urban Development (at the time the
surcharge was granted) for use in establishing subsidy levels for one-bedroom
apartments in Bergen County.
If a capital improvement is granted, the landlord shall notify the tenant of the following information within the time specified in Article II of this chapter:
A.
The total cost of the improvement granted.
B.
The method of computation to determine the surcharge.
C.
The number of rooms in the dwelling.
D.
The number of rooms occupied by the tenant.
E.
The allowable surcharge for each tenant, yearly and monthly.
F.
The effective and expiration date of the surcharge.
The decision of the Board shall be by resolution, with certified copies
mailed to the landlord and to the tenants who participated in the hearing.
The resolution shall include the following:
Each landlord shall be limited to one application and approval of an
increase in rent due to capital improvement during any one calendar year.
No capital improvement shall be granted while another is in effect.
Capital improvement surcharges shall not be included in the base rent
for the calculation of annual rent charges.
