[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Editor's Note: This ordinance superseded former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and regulations shall have the force of law until revised, repealed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:
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.
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.
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.
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.
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.
The owner of a multiple dwelling or any person acting on
behalf of the landlord, except for a contract purchaser for the 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.
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.
The amount by which annual income exceeds annual operating
expenses.
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.
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.
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.
A.
Annual percentage increase. At the expiration of any
lease or term of periodic tenancy, a landlord may not request nor
receive an annual percentage increase in the base rent for housing
space in a multiple dwelling covered by this article, which is greater
than the average increase of the CPI over the past three calendar
years from the year in which the lease or tenancy expires.
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.
A.
This article shall apply to all multiple dwelling units as defined in § 209-3 of this article as of the date of passage of this article. Any multiple dwelling unit that becomes vacant after the date of this article shall not be subject to the terms and conditions of this article, provided the landlord notifies the Board as required in this section. Thereafter, the vacated multiple dwelling unit shall be deemed decontrolled.
B.
The assignment or subleasing by the tenant of housing
space shall constitute a vacancy for purposes of this act.
C.
A landlord shall notify the Board, in writing, within
30 days of the vacating of housing space in a multiple dwelling. The
notice shall include the base rent and any surcharge charged to the
vacating tenant. The landlord shall also advise the Board as to the
reason the prior tenant vacated, including, but not limited to, for
example, eviction by court action, voluntary vacation at the end of
the term of a lease, or any other reason for vacation.
D.
If the Board determines that the landlord harassed the prior tenant into vacating the housing space, the Board may determine that the initial rent of the housing space is to be governed by § 209-4A of this article and order the base rent decreased to the maximum allowable amount under that section.
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.
This article being necessary for the welfare
of the Township of Maplewood and its inhabitants shall be liberally
construed to effectuate those purposes.
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.
This article is to take effect upon passage
and publication as required by law.
