Borough of Palisades Park, NJ
Bergen County
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Table of Contents
Table of Contents
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:
A. 
The determination of the Board as required by § 235-47 of this article.
B. 
Whether the capital improvement was granted.
C. 
If the application was granted, the calculation and the amount of the surcharge.
D. 
A statement as to the beginning and ending dates of the surcharge.
E. 
A description of the appeal procedure to the Mayor and Council.
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.