[Adopted 5-17-2005 by Ord. No. 2292-05[1]]
[1]
Editor's Note: This ordinance superseded former Ch. 209, Rent Control, adopted 12-17-2002 by Ord. No. 2200-02.
A. 
There is constituted a Rent Leveling Board (Board) within the Township of Maplewood. The Board shall consist of five members and two alternates, who shall sit in place of any absent members. The Township Committee shall appoint each member of the Board and any alternate. Each member of the Board and any alternate shall have a term of office for a period of two years and shall serve without compensation. The Board shall elect a Chair from among its members on an annual basis.
[Amended 5-16-2017 by Ord. No. 2861-17]
B. 
Vacancies in the membership of the Board for any reason whatsoever shall be filled by the Township Committee for the unexpired term of the member or alternate whose place is vacated.
A. 
The Board is granted all powers necessary and appropriate to carry out and execute the purposes of this article, including, but not limited to, the following powers:
(1) 
To issue and promulgate rules and regulations as it deems necessary to implement the purposes of this article, which rules and regulations shall have the force of law until revised, repealed or amended, providing that those rules and regulations are filed with the Township Clerk;
(2) 
To supply information and assistance to a landlord and a tenant to help them comply with the provisions of this article;
(3) 
To hold hearings, adjudicate applications from a landlord for additional base rent or a surcharge, and order relief; and
(4) 
To hold hearings, adjudicate applications from a tenant for a reduction in base rent or a surcharge, and order appropriate relief.
B. 
The Board shall give a landlord and tenant reasonable opportunity to be heard before making any determination. The Board shall render its decision within 20 days after completing its hearing on any matter.
For purposes of this article, the following definitions apply:
ANNUAL INCOME
The legal monthly, weekly or other periodic base rent and surcharges (except previously granted fair return surcharges) for all units, both residential and commercial, in a multiple dwelling on the date an application is filed, computed on an annual basis, together with any other income earned from the operation of the multiple dwelling during the test year; provided, that where a unit has seasonable, alternate or other varying base rent, an appropriate adjustment shall be made. Where a unit is occupied in whole or in part rent-free, the full rental value shall be included.
ANNUAL OPERATING EXPENSES
All property taxes and operating costs necessary for the operation and maintenance of a multiple dwelling, excluding depreciation, mortgage interest and amortization, properly allocated to the test year.
BASE RENT
The sum of money due a landlord from a tenant for housing space for the term of the tenancy, excluding any surcharge, other than that provided for in the third sentence of § 209-4B(2) of this article.
CPI
The consumer price index (all items) for the Metropolitan New York City area, published periodically by the Bureau of Labor Statistics, United States Department of Labor.
HOUSING SPACE
That portion of a building rented or offered for rent for the home, residence or sleeping place of an individual or family, together with all privileges, services, furnishings, equipment, facilities and improvements connected with its use or occupancy.
LANDLORD
The owner of a multiple dwelling or any person acting on behalf of the landlord, except for a contract purchaser for the multiple dwelling.
MULTIPLE DWELLING
A building which is occupied, or to be occupied, in whole or in part, as the housing space of three or more individuals or families living independently of each other, except for hotels, motels and similar type buildings, and three-family buildings where the landlord resides.
MUNICIPAL PROPERTY TAXES
Those taxes assessed to each property within the Township of Maplewood which includes the municipal portion, the county portion and the Board of Education portion.
NET OPERATING INCOME (NOI)
The amount by which annual income exceeds annual operating expenses.
PERIODIC TENANCY
A lease tenancy, whether oral or written, for housing space, the term of which shall be for the renewable period of less than one year, including, but not limited to, month-to-month tenancies.
SURCHARGE
The sum of money due a landlord from a tenant in addition to base rent for a limited duration and for the reasons permitted under § 209-4B (a fair return surcharge), § 209-4C (a capital improvements surcharge), or § 209-4D (a property tax surcharge) of this article.
TENANT
An individual or family who occupies housing space in a multiple dwelling and pays base rent to a landlord for that housing space, and may include, in appropriate circumstances, a group of tenants.
TEST YEAR
The most recent full calendar or fiscal year, or any 12 consecutive months ending not earlier than 30 days prior to the date an application is filed.
[Amended 10-7-2025 by Ord. No. 3168-25]
A. 
Annual percentage increase. At the expiration of any lease or term of periodic tenancy, the maximum annual percentage increase in the base rent for a housing unit covered by this article for the new lease or periodic tenancy shall not exceed the average increase of the CPI over the past three calendar years prior to the expiration of the prior lease or tenancy.
B. 
Hardship rent surcharge.
(1) 
Surcharge. In the event that a landlord does not make a fair return on invested capital in a multiple dwelling covered by this article, the landlord may file an application with the Rent Leveling Board for a hardship rent surcharge.
(a) 
A landlord's invested capital shall be a total of the initial cash investment or down payment and the total amount of amortization of the mortgage covering the property. The invested capital shall be reduced by any amounts realized from recasting or refinancing mortgages in excess of the mortgages being paid off.
(b) 
A fair return on invested capital shall be that percentage of invested capital equal to 10 interest points above the maximum passbook demand deposit savings account interest rate available in the Township. (Example: if the passbook rate is 2%, then fair return shall be 12%.)
(c) 
A fair return calculation shall be based upon the net operating income over the invested capital.
(2) 
Time period. A surcharge approved pursuant to Subsection B(1) of this subsection shall be effective for a period of one year. At the conclusion of the one-year period, the Board, upon the request of the landlord, may renew the surcharge for an additional one year, providing the landlord satisfies the requirements of Subsection B(1) of this subsection. The Board may, in its discretion, where it has approved a surcharge pursuant to Subsection B(1) of this subsection for three consecutive years, deem the surcharge to be part of the base rent of a tenant.
(3) 
Allocation. A surcharge approved pursuant to Subsection B(1) of this subsection shall be allocated to a tenant based upon the tenant's proportionate share of the total base rent of the multiple dwelling, except to the extent, in the opinion of the Board, that this method of allocation in a particular case would not be feasible or would work an injustice. The surcharge shall be paid in 12 equal monthly installments commencing the month following the approval of the surcharge.
C. 
Capital improvements surcharge.
(1) 
Surcharge. A landlord may file an application for a surcharge to cover the cost of a planned major capital improvement to a multiple dwelling. The landlord's application shall include the total cost of the capital improvement; the number of years of useful life of the capital improvement as claimed by the landlord for depreciation for income tax purposes; and the amount of the surcharge sought from the tenant. The Board may grant a surcharge only if it finds that the major capital improvement benefits the tenant. The Board may approve the planned major capital improvement; however, the landlord may not implement the surcharge until the landlord submits verification of completion of work and payment (in the form of a detailed invoice and paid bill or cancelled check) and the Board provides final approval.
(2) 
Time period. A surcharge approved pursuant to Subsection C(1) of this subsection shall be effective for a period as the Board may, in its discretion, determine.
(3) 
Allocation. A surcharge approved pursuant to Subsection C(1) of this subsection shall be allocated to a tenant based upon the tenant's proportionate share of the total base rent of the multiple dwelling, except to the extent, in the opinion of the Board, that this method of allocation in a particular case would not be feasible or would work an injustice, and shall be limited to a maximum of 15% of the tenant's base rent. The surcharge shall be paid in equal monthly installments commencing the month following the approval of the surcharge.
D. 
Property tax surcharge.
(1) 
Surcharge. A landlord is permitted, without prior approval of the Board, to impose a property tax surcharge upon a tenant based upon the difference in municipal property taxes for the current calendar year and the taxes for the immediately preceding calendar year.
Example
2004 taxes
$10,000
2005 taxes
$10,240
Increase in taxes
$240
(2) 
Time period. A surcharge imposed pursuant to Subsection D(1) of this subsection shall not be cumulative for each calendar year. The tenant shall pay the surcharge in six equal monthly installments commencing with the month of July and continuing thereafter.
(3) 
Allocation. A surcharge imposed pursuant to Subsection D(1) of this subsection shall be allocated to a tenant based upon the tenant's proportionate share of the total base rent of the multiple dwelling, except to the extent, in the opinion of the Board, this method of allocation in a particular case would not be feasible or would work an injustice, and shall be limited to a maximum of 75% of the increase in property taxes.
Example
Tenant A's rent per month
$600
Total multiple dwelling rent
$2,400
Yearly tax increase
$240
Total permissible surcharge, $240 x .75 =
$180
Tenant A's share of surcharge, $600/$2,400 x $180 =
$45
(4) 
Notice. Thirty days prior to the imposition of a surcharge, the landlord shall notify the tenant, by certified mail, return receipt requested, or personal service, of the calculations involved in computing the surcharge, setting forth each of the items that comprise the formula outlined in Subsection D(3) of this subsection.
(5) 
Character. A surcharge imposed pursuant to Subsection D(1) of this subsection shall not be considered as part of a tenant's base rent for the purpose of computing an annual percentage increase.
(6) 
Effects of a tax appeal. Where a landlord is successful in taking a tax appeal and the property taxes are reduced, a tenant shall receive 25% of the reduction as applied to its proportionate share of the surcharge after deducting all expenses incurred by the landlord in prosecuting the appeal. The landlord shall advise the tenant, in writing, of the outcome of the appeal within 30 days after receipt of the tax appeal decision.
(7) 
Reduction in taxes. In the event there is a reduction in property taxes, no increase in base rent will be permitted which exceeds that otherwise permitted by this article, offset by the tax savings which accrues to the landlord.
A. 
Applications for relief.
(1) 
Tenant application to reduce base rent or surcharges. A tenant may challenge an increase in base rent or the assessment of a surcharge by filing a written application with the Secretary of the Board. The tenant shall serve a copy of the application on the landlord. The landlord may file with the Secretary of the Board a written response to a tenant's application. The landlord shall serve a copy of the response on the tenant.
(2) 
Landlord application for a surcharge.
(a) 
A landlord may request a fair return surcharge or a capital improvements surcharge by filing a written application with the Secretary of the Board, pursuant to § 209-4B or § 209-4C, respectively, of this article. The landlord shall serve a copy of the application on each affected tenant. A tenant may file with the Secretary of the Board a written response to the landlord's application. The tenant shall serve a copy of the response on the landlord.
(b) 
Upon receipt of an application for a fair return surcharge pursuant to § 209-4B of this article, the Board may retain an independent professional expert to assist the Board in the processing of the application. The Board shall send a copy of the landlord's application to the expert for review. The expert shall submit to the Board an estimate of the cost of the expert's services.
(c) 
The Board shall notify the landlord, in writing, of the estimated cost of the expert's services. Within 30 days of the notice, the landlord shall deposit with the Tax Collector of the Township of Maplewood funds which shall be maintained in an interest-bearing escrow account, sufficient to cover the costs of the expert's services. The expert shall be authorized to review the financial statements and documentation submitted by the landlord and any tenant, to file a report with the Board and, if necessary, to testify at a public hearing.
(d) 
The expert shall submit vouchers for all reasonable and necessary fees for services rendered. Payment for the expert's services shall be made from the escrow account. The expert shall not retain any report prepared with respect to the landlord's application as security for the expert's compensation. If after notice and within the time prescribed by the Board, the landlord fails to deposit sufficient funds with the Tax Collector, the expert may proceed against the landlord for nonpayment of the expert's services. The Board shall take no formal action on the application unless and until all of the fees of the expert have been paid. At that time, any surplus money, including interest in the escrow account, shall be remitted to the landlord.
B. 
Filing and service. Filing or service of an application or a response shall be by certified mail, return receipt requested, or by personal service. Proof of mailing or service upon a landlord or tenant shall be submitted to the Secretary of the Board.
C. 
Notice of hearing. The Secretary of the Board shall notify the landlord and the tenant of the date, time and place of the public hearing of the Board on any application filed pursuant to this section.
To the extent that an increase in base rent or a surcharge is in excess of that permitted by this article, it is declared to be null and void. Any excess base rent or surcharge shall be refunded to a tenant with interest at the rate for one-year treasury bills for the first week of the month in which the Board makes its determination.
The Township Clerk shall have available for public inspection the most recent CPI figures.
A. 
A landlord or a tenant may appeal the findings of the Board to the Township Committee within 20 days from the date of the Board's determination and request a hearing by the Township Committee based on the record (the evidence and proceedings) compiled by the Board.
B. 
The decision of the Board shall be final and conclusive, and shall be affirmed by the Township Committee unless that decision is not supported by substantial evidence.
A. 
During the term of this article, a landlord shall maintain the same standards of services, painting, maintenance, furniture, furnishings and equipment in the housing space as provided and as required by law or lease at the date the lease was entered into.
B. 
Upon the receipt by a landlord of notice of a violation of a health, building or other municipal ordinance involving the multiple dwelling, the landlord shall make public the violation by posting a notice in the public portion of the multiple dwelling.
A landlord or anyone acting on behalf of a landlord shall not use coercion, threat or action of reprisal against a tenant in an attempt to prevent the tenant from exercising the tenant's rights under this article or to force a tenant from a dwelling covered by this article.
Notwithstanding anything to the contrary, any housing space governed by the provisions of Ordinance Number 2140-00 at the time of the passage of this article shall be governed by the provisions of this article until vacated by the present tenant.
A landlord shall have available for inspection by the Board, at any time requested by the Board, all records of tenancies, leases, base rents and surcharges being charged to a tenant.
A. 
On or before March 1 of each year, all owners of multiple dwellings covered by this article shall file with the Township Clerk a list of rents for all apartments owned by them. This list shall contain a sworn affidavit as to the accuracy of said list.
B. 
Within 60 days of the date of any change in rent for any covered multiple dwelling, a landlord shall notify the Township Clerk of such a change.
A violation of any provisions of this article, including but not limited to the filing with the Board of any material misstatement of fact, shall be punishable by a fine of not less than $1,250 and imprisonment for not more than 90 days, or both. A violation affecting more than one multiple dwelling unit shall be considered a separate violation as to each multiple dwelling unit.
If any provision of this article or the application of that provision to any person or circumstance is declared invalid, that invalidity shall not affect other provisions or application of this article which can be given effect, and to this end, the provisions of this article are declared to be severable.
This article shall be reviewed by the Board and the Township Committee periodically, and shall be subject to revisions and amendments, if any, as determined by the Township Committee.