As used in this chapter, the following terms
shall have the meanings indicated:
AVAILABLE FOR RENT TO TENANTS
Fit for habitation as defined by the statutes, codes and
ordinances in full force and effect in the State of New Jersey, County
of Gloucester and Township of Mantua, and either occupied, unoccupied
and offered for rent.
DWELLING
Includes any building, structure or trailer or land used
as a trailer park, either occupied or unoccupied, rented or offered
for rent to one or more tenants or family units.
HOUSING SPACE
Includes that portion of a dwelling, either occupied or unoccupied,
rented or offered for rent for living and dwelling purposes to an
individual and/or family unit, together with all privileges, services,
furnishings, furniture, equipment, facilities and improvements connected
with the use or occupancy of such portion of the property.
JUST AND REASONABLE RATE OF RETURN
One which is not confiscatory. It should be one generally
commensurate with returns on similar investments; however, an evaluation
must be made of the interests of not only the investor but also of
the tenants and general public.
LEASE
A written or oral lease in existence between the landlord
and the tenant, and, in the absence of a written or oral lease or
in the circumstances wherein a month-to-month tenancy is created by
the tenant and landlord, either explicitly, implicitly or by operation
of law, lease shall mean, for the purposes of this chapter, the twelve-month
period commencing on February 1 of each year.
MOBILE HOME SPACE
That portion of a mobile home park rented or offered for
rent for the purpose of parking or positioning a trailer or mobile
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 portion
of the property.
MULTIPLE DWELLING
Any building or structure of one or more stories and any
land appurtenant thereto, and any portion thereof in which five or
more units of dwelling space are occupied or are to be occupied by
five or more persons or families who live independently of each other.
This definition shall also mean any group of 10 or more buildings
on a single parcel of land or on contiguous parcels under common ownership,
in each of which two units of dwelling space are occupied or intended
to be occupied by two persons or households living independently of
each other, and any land appurtenant thereto and any portion thereof.
This definition shall not be construed to include any building or
structure defined as a hotel and registered as a hotel with the Commissioner
of Community Affairs and occupied or intended to be occupied exclusively
as such. This definition shall not be construed to include any building
section containing not more than two dwelling units held under a condominium
or cooperative form of ownership, or by a mutual housing corporation,
where all the dwelling units in the section are occupied by their
owners, if a condominium, or by shareholders in the cooperative or
mutual housing corporation, and where such building section has at
least two exterior walls unattached to any adjoining building section
and is attached to any adjoining building sections exclusively by
walls of such fire-resistant rating as shall be accepted or expected
by recognized standards; this definition does not include any building
of three stories of fewer, owned or controlled by a nonprofit corporation
organized under any law of this state for the primary purpose to provide
for its shareholders or members housing in a retirement community
as the same is defined under the provisions of the Retirement Community
Full Disclosure Act (N.J.S.A. 45:22A-1 et seq.) of the Laws of the
State of New Jersey.
PRICE INDEX
The consumer price index (all items) for the region of the
United States of which the Township of Mantua, State of New Jersey,
is a part, published periodically by the Bureau of Labor Statistics,
United States Department of Labor.
PROTECTED TENANCY
A dwelling or housing space occupied by a tenant that is
not subject to vacancy decontrol as hereinafter described. A protected
tenancy arises at the commencement of a tenancy relationship with
the landlord in which the provisions of this chapter are directed.
Such a protected tenancy commences following the vacancy decontrol
of a unit and continues throughout the parties' relationship.
RENTAL INCOME
The payable rent charged and received for the mobile home
space over the previous twelve-month period exclusive of any of the
following: space fees or license fees charged by the Township of Mantua
pursuant to any duly adopted ordinance; any cost of supplied utilities;
and any increase for hardship or major capital improvements as permitted
hereinafter.
SERVICE
Mailing to the home address by certified mail, return receipt
requested, or by hand delivery certified to by affidavit or by 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.
SUPPLIED UTILITIES
Fuel, electrical, water and sewer services supplied directly
to the individual mobile home, for which services the landlord is
responsible to the supplier for payment.
The establishment of rents between a landlord
and a protected tenant to whom this chapter is applicable shall hereafter
be determined by using either of the methods set forth in Subsection
A or B below, but not both, and by utilizing the procedures set forth
in Subsections C, D, E and F below.
A. Rent increases shall be allowed only to the extent
which is reasonably necessary to permit an efficient landlord to realize
a just and reasonable return on his property, with reliance given
upon the following grounds:
(1) A rent increase reasonably necessary to indemnify an efficient landlord for the increased cost to the landlord for supplied utilities and for the cost of completed capital improvements as determined by §
318-9, where the absorption of those costs will materially and adversely diminish the return realized by the landlord on his property.
(2) A rent increase necessary to cover the inadequacy
of the landlord's net working capital generated from operations to
cover mortgage payments, where the mortgage payments result from a
capitalization equity ratio which is commercially reasonable and reasonably
related to the acquisition or refinancing of the dwelling for rental
purposes.
(a)
A landlord who finds that present rental income
and additional charges from the housing space on which he seeks relief
hereunder are insufficient to cover the cost of payments on a first
mortgage and any subsequent mortgages directly used to improve and
upgrade the housing space and/or payments for maintenance and/or all
operating costs may appeal to the Board for a hardship, the Board
may grant the landlord a hardship rent increase to meet these needs
after considering the proofs presented by the landlord, the condition
of housing space and degree of hardship to the landlord.
(b)
The burden of proof in regard to value computation,
the reasonableness of expenses, reasonable rental, inadequacy rate
of return and all items pertaining thereto is on the applicant. Where
a majority of the Board decides that it is unable to make a proper
determination from the facts as presented, the Board may call for
an independent examination of all relevant documents, and the independent
examiner shall then present his findings to the Board prior to its
deciding on the application.
(3) Any increase to the landlord in mobile home space
fees or license fees charged by the Township of Mantua pursuant to
any duly adopted ordinance. The landlord may also seek an increase
as reimbursement for 1/2 of his application fee paid to the Township
at the time of filing the application with the Township for a rent
increase.
B. Any amount equal to the percentage difference between the consumer price index for December of the year in which the increase is sought and the consumer price index for December of the previous year, whichever is less. Any continuing tenant shall not suffer or be caused to pay the rent increase for the housing space or dwelling unit within any twelve-month period which exceeds the above-permitted increase for the twelve-month period. Specifically, in the event that a specific term for the tenancy does not exist between the landlord and tenant pursuant to any written or oral lease or in the event that explicitly, implicitly, applied or by operation of law the relationship between the landlord and tenant is realistically deemed to be a month-to-month tenancy, tenants so situate shall not suffer or be caused to pay more than one rent increase allowable under §
318-2, in any twelve-month period commencing February 1 of each year, for the relevant housing space or dwelling unit.
[Amended 8-23-2005 by Ord. No. O-13-2005]
C. Rent increase. The approved rent increase shall become
effective on the later of the anniversary of the effective date of
the last approved rent increase or the date of the petition and be
collectible over a period of not less than 12 months from the date
it becomes effective.
D. Application requirements for standard consumer price
index increase. An application by a landlord pursuant to this chapter
shall include the following, in addition to any requirements which
may be mandated by other sections of this chapter:
(1) A certification by the landlord certifying:
(a)
That he is an efficient operator of the residential
real property.
(b)
That the residential real property is in a safe
and sanitary condition and that there are no outstanding code violations
at the site that have been issued by Township, county, state, or federal
authorities. Within the meaning of this section, code violations shall
encompass all areas and services over which the landlord exercises
dominion, control or responsibility, such as common areas to multiple
tenants and/or maintenance of the dwelling space when the parties'
agreement provides. Such statement by the landlord must be dated within
90 days prior to the date the proposed rent increase is to take effect.
In the event that the landlord has been found in violation of any
existing health or safety codes, the landlord shall describe in detail
the nature of the alleged violation, the date such violation was found
and the landlord's timetable for curing such violations or the reasons
for his inability to cure such violations.
(c)
That all municipal taxes, municipal utilities
charges and county municipal charges have been paid to date.
(d)
A statement identifying the effective date of
the last rental increase allowed by the Board and the nature of the
increase granted.
(2) A nonrefundable filing fee in the amount of $150.
(3) Computation of the new proposed rents for each unit
within the complex and the date upon which said increase would go
into effect, absent any prior vacation of each said unit.
(4) The landlord shall submit an original and 10 copies
of an application for a standard increase to the Board Secretary.
(5) The landlord shall notify the Rent Leveling Board,
in writing, at least 60 days prior to the proposed increase effective
date pursuant to the provisions of this section, and said application
shall have attached to it the calculations and/or computations involved
in computing the requested increase. A copy of said notice shall be
served by certified mail, return receipt requested, or personal service
on any tenant who may be affected by the increase, together with a
notice to the tenant stating that the tenancy established at the outset
of the leasehold is hereby terminated and that a new tenancy may be
created by the parties at an increased rental, if approved by the
Board.
(6) Where an increase is sought based upon §
318-2, no hearing shall be scheduled unless requested by a tenant, and the increase shall become effective upon the date specified in said notice.
(7) A certification by the landlord that he is not earning
a fair net operating income pursuant to his present rental structure.
The application shall include the amount of the increase and the percentage
of the increase requested.
(8) Notwithstanding any other provisions in this section,
no hearings shall be required by the Rent Leveling Board on any proposed
increase unless a hearing is requested, in writing, by a tenant within
30 days of receipt of a notice of the proposed increase.
(9) If the tenant(s) is represented by an attorney or
a tenants' association, said representation shall be indicated, in
writing, prior to or at the initial hearing on an application. If
the representation is acting on behalf of more than one tenant, he
shall submit a list of the names and addresses of all tenants that
are represented by him and provide the Board with a calculation as
to the percentage of tenants in the multiple dwelling concerned by
the application that are represented by him.
E. Petition. A petition for relief under this section shall contain the information described in Subsection
D above. The merits of a petition shall be determined on the basis of the relief sought, the surrounding circumstances and upon the adequacy, competency and credibility of the evidence. The existence of discretionary information shall not relieve a petitioner from its burden of proof. The landlord shall supply the Board with the following:
(1) Proof of service of termination notice required by Subsection
D(5).
(2) A schedule of rental rates for the previous operational
year for all units to which this chapter is applicable by providing
the rent rolls with the categories listed below.
(3) A statement setting forth the estimated reasonable
expenses and all other reasonable costs for the operational year,
by providing the following:
(a)
Statement of financial condition (balance sheet)
for the period ended in the application (no more than 60 days prior
to the filing of application).
(b)
Statement of revenue (for the year ended no
more than 60 days prior to the filing of the application). The statement
should include:
[1]
Gross rents (per rent roll) less:
(c)
Statement of operating expenses (for the year
ended no more than 60 days prior to filing the application). The operating
expenses should be detailed enough to make an analysis of the expenses
meaningful. The operating expenses will not include depreciation or
interest expenses.
(d)
Comparative statement of operations. This statement
will show, side by side, the revenue and operating expenses for the
current and two preceding years on an actual basis and for the year
under review on an estimated basis. The projection should assume no
rental increase.
(e)
Statement of changes in financial position.
(f)
Analysis of operating expenses. The applicant
should furnish a detailed analysis of cost in the following areas
for the then most recent and the projected operational years:
[2]
Calculation of fringe benefits and payroll taxes.
[3]
Maintenance.
[a]
Description of maintenance performed by own
staff and cost.
[b]
Maintenance performed by outside contractors.
[4]
Utilities: break out type of utility. Where
a tenant pays his own utilities, a statement should be provided by
the utility as to the average cost to the tenant.
[5]
Management fees.
[b]
Relationship of owners of the management company
to the landlord.
[c]
Duties performed and services rendered for which
the fee is collected.
(4) A statement setting forth the reasonable rental of
property. The statement should address but not be limited to:
(a)
Comparable rents being charged at other complexes;
(b)
The rate of return on the investment; and
(c)
The capital investment to maintain the complex.
(5) A schedule showing the original cost of the investment
and capitalized expenditures since date of purchase.
(6) Statement of value. This can consist of a statement
by the landlord or an appraiser's report. However, the establishment
of value must be fully explained and disclosed.
(7) Statement of return. The landlord must calculate the
present rate of return the requested increase will yield. The rate
of return must be substantiated as being reasonable for the type of
investment and risk involved. Comparison to similar types of investments
and their yields should be discussed.
(8) Certification by the landlord as to the accuracy of
all financial statements. The landlord's certification should be accompanied
by either an examination, compilation or an agreed-upon procedure
of a certified public accountant as prescribed by the American Institute
of Certified Public Accountants.
(9) No application for any increase shall be reviewed
or heard by the Board unless a proof of payment of all real estate
taxes and municipal utility authority service charges is submitted
by the applicant at the time of filing of the application.
(10) The burden of proof in regard to value computation,
the reasonableness of expenses, reasonable rental, vacancies, inadequacy
of rate of return and all items pertaining thereto is on the applicant.
Where a majority of the Board decides that it is unable to make proper
determination from the facts as presented, the Board may appoint an
auditor or an accountant to make an independent examination of all
relevant documents or a real estate appraiser to make an independent
appraisal of the value of the complex, and they shall the present
their findings to the Board prior to its deciding on the application.
F. Increase by agreement.
(1) The landlord and the tenants may effectuate rent increases
by agreement. The agreement must be in writing and signed by the landlord
and signed by the tenants representing 75% plus one of the rental
units affected by the rent increase. The written agreement must contain
the following information: the old rent, the new rent, the effective
date of the new rent, the amount of increase and any other terms and
conditions of the agreement.
(2) Landlords seeking a rent increase pursuant to this subsection shall be obligated to file an application with the Board pursuant to Subsection
D of this section along with a copy of the proposed agreement.
(3) If there is a tenant or tenants that does not agree
to be bound by the agreement for increase proposed by the landlord
and the agreeing tenants, the dissenting tenants shall have the right
to a hearing by the Board upon timely notice to the Board of their
objection to the agreement. No increase pursuant to this subsection
may take effect until the Board makes a final determination concerning
the agreement. Upon receipt of an objection, the Board Secretary shall
schedule a date for the Board to consider the agreement if the agreement
has been memorialized. Once the date has been set, the landlord must
notify all of the tenants whose rental units are to be affected by
the rental increase of the date of the meeting and at the same time
provide the tenants with a copy of the proposed agreement. Said notification
must be by certified mail, return receipt requested, or by personal
service.
(4) At the time the Board meets to consider the proposed
agreement, the Board shall take testimony concerning the proposed
agreement. The decision of whether or not to approve the proposed
agreement shall remain solely with the Board, who shall also have
the authority to modify the agreement as it deems necessary.
(5) Resolution of disputes. In the event that all parties
agree to a settlement of any petition properly brought before the
Board under the provisions of this chapter, the Board may nevertheless
hold a hearing, make independent findings of fact and determinations
and issue a decision in the form of a written resolution, clearly
indicating the amount of rent increase granted, the effective dates
and the reasons for the Board's decision. The Board, in its sole discretion,
may accept or reject, in whole or in part, any settlement agreed on
by the parties.
Any rental increase at a time other than as
permitted by this chapter or at the expiration of a lease or termination
of a periodic lease shall be void. Any rental increase in excess of
that authorized by the provisions of this chapter shall be void, and
increased payments made pursuant to said illegal rent increase shall
be returned to the tenant(s).
Any landlord seeking an increase in rent predicated upon §
318-2A or
B shall, in the application for a rent increase, annex the actual calculations involved in computing the rental increase and shall also attach said calculations to the notice. Said notice of increase and calculation shall include:
A. For a year-to-year tenant:
(1) The consumer price index as of February 1 in the year
the increase is sought.
(2) The consumer price index as of February 1 of the previous
year.
(3) The difference between Subsection
A(1) and
(2), as computed by subtracting Subsection
A(2) from Subsection
A(1).
(4) The percentage of increase allowed, determined by dividing Subsection
A(3) by Subsection
A(2).
(5) Actual rental increase in terms of dollars, determined
by multiplying the old rent by the percentage and adding this amount
to the old rent to determine the new rent.
B. For a periodic tenant of less than one year:
(1) The consumer price index as of February 1 of the year
in which the increase is sought.
(2) The consumer price index as of the date the lease
was entered into with said tenant.
(3) The differences between Subsection
B(1) and
B(2), as computed by subtracting Subsection
B(2) from Subsection
B(1).
(4) The percentage of increase allowed, determined by dividing Subsection
B(3) by Subsection
B(2).
(5) Actual rental increase in terms of dollars, determined
by multiplying the old rent by the percentage and adding this amount
to the old rent to determine the new rent.
C. For a tenant whose tenancy has no specific term pursuant
to an oral or written lease with the landlord or whose tenancy is
construed, explicitly, implicitly or implied or by operation of law,
as a month-to-month tenancy:
(1) The consumer price index as of February 1 of the year
for which the rental increase is desired.
(2) The consumer price index as of February 1 of the preceding
year.
(3) The difference between Subsection
C(1) and
C(2), as computed by subtracting Subsection
C(2) from Subsection
C(1).
(4) The percentage of increase allowed, determined by dividing Subsection
C(3) by Subsection
C(2).
(5) Actual rental increase in terms of dollars, determined
by multiplying the old rent by the percentage and adding this rent
to the old rent to determine the new rent.
D. A landlord shall provide to each tenant an itemization
as to the amount of money they are paying for "rent," itemizing as
to utilities, charges for capital improvements and other expenses
in addition to normal rent. Such breakdown shall be provided on an
annual basis and then no later than March 15 of each year. In order
to provide a clear understanding as to how much rent is being paid,
each resident in a mobile home park should be provided an itemization
as to the amount of money they are paying for "rent." For example,
there should be an itemization as to what is paid for utilities, capital
improvements, and pad fee in addition to rent. This should be provided
on an annual basis so that residents are provided a true breakdown
as to the cost of residing in the park.
[Amended 8-23-2005 by Ord. No. O-13-2005]
A tenant shall be entitled to a rent reduction
from a landlord by reason of a decrease on municipal water and/or
sewer rates, or cost of supplied utilities or any decrease in space
fees or license fees charged by the Township of Mantua. The tenant
shall also be entitled to a rent reduction where a landlord fails
to maintain the same standard of service, maintenance and equipment
in the mobile home park and mobile home spaces as was contracted for.
The reduction shall not exceed that amount authorized by the following
provisions:
A. Where the decrease consists of a decrease on the municipal
property tax by reason of aid received from the State Aid for Schools
Fund 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 reductions in the form of a
rebate upon such terms as is provided in P.L. 1976, c. 63.
B. Where the decrease consists of a decrease in municipal property tax other than that decrease provided for in Subsection
A above, the landlord shall divide the decrease in yearly taxes by 12, and the tenant shall receive a decrease in the monthly rent equal to 1/12 of the tenant's prorated share of the annual decreases in taxes in the present tax over the tax for the previous year divided by the total number of completed dwelling or housing spaces existing under the landlord's control. The decrease each tenant is entitled to shall be a credit against rent taken in 12 equal monthly installments commencing September of each year. Making such computation, a landlord shall include as a denominator for distribution of the proportionate decrease the total number of lots in the development. 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.
C. Where 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, mobile
home space fees or license fees over the cost of supplied utilities,
mobile home space fees or license fees of the previous year by the
total number of completed dwelling or housing spaces under his control
and subject to this chapter in order to obtain the decrease per space.
The decrease each tenant is entitled to shall be a credit against
rent on 12 monthly installments commencing from the effective date
of said reduction. Any tenant entitled to a rent decrease hereunder
shall be served with a notice by the landlord, including the calculations
involved in computing said reduction and the effective date of said
reduction.
D. Where the decrease consists of a failure to provide maintenance on the part of the landlord (as required by §
318-13), the decrease awarded shall equal the reasonable value of the maintenance service which is not being provided by the landlord, taking into consideration the habitability of the rented premises. The decrease shall begin on the first next date rental is due following the grant of the decrease by the Board and shall continue during the entire period that the reason for the decrease continues to occur, but in any event not less than a one-month period. The landlord shall notify the Board of the corrections or the restoration of maintenance, and the Board shall verify the same prior to the rent returning to its previous level. At any time after the grant of the decrease, the landlord may apply to the Rent Leveling Board for an elimination of the decrease and the Board shall establish a hearing date to consider the application. In order to eliminate the decrease, the landlord must show that the reasons for which the decrease was granted have been corrected or eliminated and the maintenance restored or completed. An elimination of a rent decrease shall be made retroactive by the Board based on its discretion to the point at which the reason for the decrease started.
A landlord may seek an additional increase per year in rent for major capital expenditures. A capital expenditure shall be any item considered as such under the Federal Internal Revenue Statute and Regulations. Prior to filing an appeal with the Rent Leveling Board, the landlord must serve each tenant with a notice of the total cost of the completed major capital expenditures; the number of useful years of life of the improvement as claimed by the landlord for purposes of depreciation for income tax purposes; the average cost, including debt service, of the improvement (calculated by dividing the cost of the major improvement by the total number of completed dwelling or housing spaces under the control of the landlord and subject to this chapter); and the major capital expenditures surcharge he is seeking from each tenant. The landlord seeking a major capital expenditures surcharge shall appeal for said surcharge to the Rent Leveling Board, which shall determine, after the landlord has served notice to the affected tenants for the hearing date, if such improvement is a major improvement and, if so, the amount of increase granted for such major improvement and shall establish the conditions for such increase. If such increase is granted, it shall not be considered rental income and shall not be included in the calculations to determine allowable increases as permitted under §
318-2 hereof. In any event, no increase granted under this section shall exceed 10% of the tenant's rental income unless said increase or capital expenditure is mandated by law. An application for an increase under this section shall not be ripe for determination by the Board until the actual improvement has been completed or the applicant has entered into a binding contract for all costs with a contractor for a sum certain for work to be commenced on a specified date during the pendency of the application.
The Rent Leveling Board may appoint a Public
Interest Accountant to review any hardship application or increase
for major improvements sought by a landlord. The Public Interest Accountant
shall have the liberty to examine any and all physical records of
the applicant for the past three years if the Accountant deems same
necessary. The Public Interest Accountant shall report to the Rent
Leveling Board any unnecessary, extraordinary or inflated mortgages,
interest payments or operating expenses and shall list any reasons
why the hardship rent increase is not necessary to ensure the continued
operation of the dwelling or housing spaces under the control of the
landlord and subject to this chapter.
This chapter, being necessary for the welfare
of the Township and its inhabitants, shall be liberally construed
to effectuate the purposes hereof.
[Added 8-23-2005 by Ord. No. O-13-2005]
A. Notwithstanding any limitations upon permissible rent
increases under any other provision of this chapter, upon voluntary
and uncoerced vacation of any dwelling or housing space or upon the
voluntary uncoerced change of resident's tenancy in a mobile home
located on the mobile home space for which rent increases are controlled
by this chapter, the landlord shall have the right to fix the rent
for such vacated apartment, dwelling space or mobile home space at
such sum as landlord deems appropriate. Subsequently, however; any
future rent increase sought for such dwelling, housing space or mobile
home space which remains rented to the same tenant shall be subject
to the provisions of this chapter.
B. The decontrol provisions of this section shall apply
only to dwelling units which are physically vacated, or mobile home
spaces where the tenants are changed subsequent to the effective date
of this section.
C. This section is retroactive to November 25, 2003.
It is the intent of the governing body to allow vacancy decontrol
to be uninterrupted despite its temporary repeal between November
25, 2003, and the date of this amendment.