Chapter 68. Rent Stabilization
RENT STABILIZATION - Chapter 68
68‑1. Title
68‑2. Definitions
68‑3. Administration
68‑4. Maintenance of Standards
68-5. Inspections
68-6. Proof of Taxes and Municipal Charges Paid
68-7. Ordinance Violations
68‑8. Establishment of Rent Increases
68-9. Hardship Application
68‑10. Rental Increases Restricted
68‑11. Prohibited Increases
68‑12. Initial Rentals
68-13. Exemption for Rehabilitation Program
68‑14. Violations and Penalties
68‑15. Noncomplying Lease Provisions Void
68‑16. Appeal to the Governing Body
68-17. Application Fees; Escrow
68‑18. Construction of Provisions
68‑19. Repealer
68‑20. Severability
68‑21. When Effective
Township Council recognizes that the goal of Rent Stabilization in the Township of Gloucester is to provide economic justice to residential tenants and to protect residential tenants of the township, and residential senior citizen tenants of the township who are more or less dependent on apartment owners and mobile home park owners and have no other housing options, and to permit efficient administration and a fair, just, and reasonable return to landlords
68-1. Title.
This Ordinance shall be known as the "Rent Stabilization Ordinance of the Township of Gloucester".
68‑2. Definitions.
As used in this Ordinance, the following terms shall have the meanings indicated:
AVAILABLE FOR RENT TO TENANTS ‑ Fit for habitation, as defined by state and local housing inspection codes and the law as promulgated by the Legislature and the courts of the State of New Jersey, and offered for rent.
COMPLEX ‑ An apartment or multiple dwelling which includes dwelling units advertised as available for rent to tenants under the same management and trading under the same name.
DWELLING SPACE ‑ An apartment unit which includes that portion of a dwelling or building rented or offered for rent for living and dwelling purposes to one (1) individual or family unit, together with all privileges, services, and furnishings appurtenant thereto, including the use or occupancy of such portion of the complex as is granted the household from the landlord to the tenant under the lease. There shall be two (2) classes of dwellings as follows:
A. Class A dwelling spaces are those which the landlord pays for the heat directly to the service provider.
B. Class B dwelling spaces are those which the tenant pays for heat directly to the service provider.
HARASSMENT/PRESSURE - Harassment/Pressure, under this ordinance is defined as any act, proceeding or event that leads to the reduction of standard, services, maintenance, health and safety conditions, furniture, furnishings or equipment caused by the Landlord with intent to force the Tenant to vacate the rental unit.[Amended on 10-11-06 by Ord. O-06-29]
JUST AND REASONABLE RATE OF RETURN ‑ A rate of return to the landlord 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 (landlord) but also of the tenants and the general public.
LANDLORD ‑ An owner, sublessor, assignee or other person, firm, partnership or corporation receiving or entitled to receive rents or any agent of the same receiving or entitled to receive rent from a tenant of a multiple dwelling.
MULTIPLE DWELLING ‑ Any building or structure or group of complex of buildings or structures of lands in or on which four (4) or more units of dwelling spaces are occupied or are intended to be occupied by four (4) or more persons who live independently of each other. The term "dwelling," whenever used within the body of this Ordinance, shall be construed to mean "multiple dwelling."
NET CCMUA SURCHARGE - The yearly amount charged by the Camden County Municipal Utility Authority (CCMUA) for sewer service per unit, reduced by the amount of any decrease implemented by the Gloucester Township Utility Authority for sewer service subsequent to the effective date of this Ordinance Amendment, divided by twelve (to reach a monthly surcharge amount).
OPERATIONAL YEAR ‑ The year to which the proposed rent increase is to be applied. A new landlord may change the operational year of the complex at the time of its first application to the Administrator pursuant to this Ordinance; thereafter, the operational year shall not be changed.
REASONABLE EXPENSES ‑ Expenses of a landlord related to a complex, including but not limited to taxes and depreciation not previously compensated for through tax savings or other such means, utilities, insurance, maintenance, reasonable repairs, vacancy allowances and uncollectibles.
REASONABLE RENTAL ‑ A statement of rental value which includes a showing of the age, character, locality, appurtenant amenities and state of repair of the multiple dwelling, as well as comparable rentals for similar properties located within the Township.
TENANT - An individual who resides within a dwelling space located at an apartment complex within Gloucester Township, which complex is subject to the provisions of this Ordinance, and which individual is otherwise residing within said dwelling space pursuant to a valid lease and whose rents are affected by this Ordinance.
UNIT VACANCY STABILIZATION/REHABILITATION - A unit that is vacant and reconditioned with replaced and upgraded appliances, cabinetry, bathroom fixtures, carpet/flooring and heating and air conditioning as may be approved.
68-3. Administration.
The Administration of the Rent Stabilization Ordinance shall include all powers necessary and incidental to carry out and execute the purposes of the Ordinance. The specific powers granted are:
To administer and adjudicate applications from landlords for standard rent increases allowed by this Ordinance.
To administer and determine whether the landlord applicant is an economically efficient operator and whether the return on the applicant’s investment is a just and reasonable rate of return. This decision shall only be made on applications for increases filed pursuant to ' 68-7(B).
To administer and adjudicate applications from landlords for hardship increases. These may be granted to the landlord when he has clearly shown that he cannot meet his mortgage payments and maintenance costs.
To hold hearings and adjudicate an application for a Net CCMUA Surcharge pursuant to 68-7(H).
To issue and promulgate such rules and regulations as deemed necessary to implement the purpose of this Ordinance. Said rules and regulations may be amended from time to time in the exercise of its discretion. Such rules and regulations shall be filed with the Township Clerk.
To supply information and assistance to landlords and tenants to help them comply with the provisions of the Ordinance.
To request the attendance of witnesses and the production of books and records in connection with hearings held pursuant to the provisions of this Ordinance.
To enforce the provisions of this Ordinance and to initiate proceedings in Municipal Court for willful violations thereof, and to seek the restitution or reimbursement of any rental amount charged in excess of the rental amount allowed pursuant to this Ordinance, either through a civil action or through the Municipal Court proceedings. Nothing in this provision is to be construed as the exclusive remedy by which an individual tenant may seek a rent rebate for any invalid rent increase.
To enforce, upon behalf of the Township, the provision of the Tenants’ Property Tax Rebate Act (N.J.S.A. 54:4-6.2, et seq.), and any amendments or regulations thereto, against a landlord or owner of qualified real rental property, to require said landlord or owner to provide a property tax rebate to the tenants thereof as provided in said Act. The authority granted by this provision shall not be limited to “multiple dwelling” as that term is defined in ' 68-2 of this Ordinance, but rather is applicable to all “qualified real rental property” within the meaning of the Tenants’ Property Tax Rebate Act. The authority granted by this provision shall be in accordance with N.J.S.A. 54:4-6.12, whereby the Township may issue process, with jurisdiction in Municipal Court.
H. The Administrative Officer (Administrator) of the Division of Rental Housing and Property Maintenance Compliance shall be responsible to accept applications submitted from either landlords or tenants in accordance with the provisions of this Ordinance, to review said applications for completeness, and to deem said applications complete or not. No application shall be determined unless first deemed complete by the Administrator. If an application is seemed not complete by the Administrator, then the applicant shall be notified of any deficiencies and shall have 30 days thereafter to submit any missing documents or to otherwise correct any deficiency. If the application is thereafter not deemed complete by the Administrator through the submission of missing documents or the correction of any noted deficiency by the applicant with the said thirty (30) days, then the application shall not proceed.
I. Senior Citizen and Disable Protected Tenancy Regulations.
The Administrative Officer shall serve as administrative agent to perform the duties and responsibilities prescribed under the Senior Citizen and Disabled Protected Tenancy Act, N.J.S.A. 2A:18‑61.22, et seq.
The fee for administrative services performed pursuant to the Senior Citizen and Disabled Protected Tenancy Act shall be as follows:
UNITS FEES
0‑25 $150.00
25‑50 $250.00
50‑100 $400.00
100‑200 $700.00
200‑500 $1,500.00
over 500 $2,500.00
The owner of the building or structure seeking to convert any premises involving administration services under said Act shall pay the appropriate fee heretofore established to the Township of Gloucester prior to filing of an application for registration of conversion and concurrently with the notification of intention and submission of a tenant list to the Administrative Officer.
68-4. Maintenance of Standards.
A. Whether or not the landlord is seeking a rent increase, he must at all times maintain the same standards of service, maintenance, furniture, furnishings, recreational facilities and landscaping as he is required to do by law or by the terms of the lease at the date the lease was entered into. The intent of this paragraph is to have the landlords maintain their facilities at all times, and to upgrade their facilities for the betterment of the community. Any fraudulent inducement by the landlord which results in the signing of the lease by the tenant shall be considered by the Administrator in its determination.
B. Any individual tenant or class of tenants who are not receiving the same standards of service, maintenance, furniture, furnishings, recreational facilities or landscaping which existed at the signing of the lease may petition the Administrator for a rent reduction in view of the deficiency. The tenant or class of tenants shall pay the reduced rent as determined by the administrator as the full payment of rent until the landlord proves that the deficiency has been corrected. The Administrator shall determine the reduced rent by using the following suggestive, but not exclusive guidelines:
Violation of the applicable housing, building, maintenance or sanitary code.
Nature of the deficiency or defect as it affects habitability.
The potential and actual effect of the deficiency or defect upon safety, security and sanitation of the dwelling and surrounding area.
Length of time of the existence of the deficiency or defect.
Age of the structure.
Amount of rent.
Any responsibility of the tenant for the creation of the defect or deficiency, or denial of access to correct the deficiency or defective condition.
68-5. Proof of Taxes and Municipal Charges Paid.
No application for any rental increase either under '' 68-7(A), 68-7(B) or 68-8, shall be accepted as complete, nor heard by the Administrator unless proof of payment of all real estate taxes, municipal utility authority service charges and CCMUA service charges are submitted by the applicant to the Administrator as part of the application. Such proof of payment shall be for all such taxes or charges due as of the date of the filing of the application. For rent increase applications pursuant to ' 68-8 (Hardship Applications), the applicant may substitute written approval from the Township, Township Utility Authority or CCMUA, through the appropriate official financial director/administrator, executive director, etc., indicating that arrangements have been made for payments and that this requirement can be waived.
68-6. Ordinance Violations.
No application for any rental increase either under ' 68-7 or 68-8, shall be accepted by nor heard by the Administrator while there is pending any charge before the Municipal Court of the Township of Gloucester, or any other Court of competent jurisdiction, for a violation of this Ordinance or any other ordinance of the Township of Gloucester that relates to public health, safety and welfare, or whenever a violation of this Ordinance or any other ordinance of the Township of Gloucester relating to public health, safety and welfare remains unabated by the Landlord.
68-7. Establishment of Rent Increases.
Establishment of a rent increase between a landlord and a tenant to whom this Ordinance is applicable shall be determined by this section of this Ordinance. The percent increases in ' 68-7(A) are not mandatory increases, and the Administrator must consider the criteria set forth in ' 68‑4. Failure of an applicant to meet the criteria set forth in ' 68‑4 may result in granting an increase less than that applied for.
A. Standard Rent Increase Procedure:
An annual increase of up to four and one‑half (4-1/2%) percent for Class A dwelling spaces; and four (4%) percent for Class B dwelling spaces may be granted by the Administrator if the landlord provides the Administrator with a complete application, including but not limited to a copy of a proper termination notice pursuant to applicable law pertaining to the units and proof that service thereof was made on each affected tenant at least ninety (90) days prior to the effective date stated in the notice.
The notice must state that the landlord has applied for a rent increase, 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. . If the Administrator is not provided with proof of the proper service of this notice by the required time, the application shall be incomplete. The termination notice must include a statement that the tenant has a right at any time during the term of the tenancy to petition for a reduction of rent for defects or deficiencies that have not been corrected or otherwise remain unabated.
The landlord must also submit to the Administrator a sworn statement that the maintenance and security standards for the complex as set forth in ' 68‑4 have been complied with. The Administrator may require the submission of any other information, including more detailed information relating to maintenance standards, security standards and expenditures, which it deems necessary or proper for its deliberation.
The landlord must also submit a schedule of rental rates for the previous operational year for all apartments in the complex by providing the rent rolls with the categories listed below.
a. Apartment
b. Tenant
c. Base rent approved
d. Rent presently charged
e. Term of lease
f. Lease expiration date
The Administrator may grant less than the increase requested after considering various factors, including but not limited to the reasonable rental value of the dwelling spaces and the landlord's overall maintenance of standards in the complex as set forth in ' 68‑4.
B. Rate of Return Increase Procedure. An annual rental increase in excess of that set forth in ' 68‑7 (A) may be granted to the landlord by the Administrator, provided that the Administrator is supplied with the following:
1. Proof of service of the termination notice as required in ' 68‑7 (A).
2. A schedule of rental rates for the previous operational year as required in ' 68-7(A).
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 sixty (60) days prior to the filing of application).
b. Statement of revenue for the period ended in the application (no more than sixty (60) days prior to the filing of the application). This statement should include:
(1) Gross rents (per rent roll) less:
(a) Vacancy
(b) Uncollectibles
(c) Employee apartments
(2) Net rents
(3) Other income
(4) Total revenue
c. Statement of operating expenses for the period ended in the application (no more than sixty (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 shall 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 year and the two (2) preceding years on an actual basis and for the year under review on an actual basis if available and for the year under review on an estimated basis, if projected. 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 costs in the following areas for the then most recent and the projected operational years:
(1) Payroll
(a) Position
(b) Duties
(c) Hours worked
(d) Salary of wages
(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
(c) Major repairs and cost
(d) Replacement of carpeting and appliances and cost
(e) Other items
(4) Utilities. The applicant should furnish a breakdown of the types 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
(a) Rate
(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. Rate of return on investment
c. Capital investment to maintain 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 present rate of return the increase will yield. The rate of return must be substantiated as being reasonable for the type of investment and risk involved. Comparison to similar type 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 an audited financial statement as prepared by a certified public accountant as prescribed by the American Institute of Certified Public Accountants.
9. For a rate of return increase application, the burden of proof in regards to value computation, the reasonableness of expenses, reasonable rental value, inadequacy of rate of return and all items pertaining thereto is on the applicant. If determined necessary, the Administrator may consult an auditor, accountant or real estate appraiser or attorney appointed by the Township, to provide an examination of all documents supplied by the applicant, as well as other relevant information, and to present findings to the Administrator as part of the hearing on the rate of return application.
10. A property owner cannot submit a rate of return application whereby more than one (1) complex is mentioned therein. A property owner will not be permitted to subsidize a complex which yields inadequate return out of its profits derived from other complexes or concealed by averaging it together with other complexes.
11. In determining the value of real property, the Administrator may consider evidence using various means of computation, such as depreciated replacement costs, market value based on sales of comparable properties or any soundly conceived method which the parties may suggest, such as assessed valuation or original cost depreciated.
12. The Landlord must provide the Administrator with the aforementioned information at least ninety (90) days prior to a hearing on a rate of return application. Failure of the landlord to provide the Administrator with this information shall make the application incomplete.
C. A completed standard rental increase or rental decrease application shall be filed with the Administrative Officer at least ninety (90) days prior to the requested date for determination. Once an applicant has filed a complete application, and the Administrator has conducted a review, at which time all interested parties may present testimony, the Administrator shall render its decision within ninety (90) days, unless extended with the consent of the applicant. Upon failure to do, such application, at the expiration of such time, unless otherwise extended with the consent of the applicant, shall be deemed to be denied in the same manner as though the Administrator has rendered a decision to that effect.
D. Increases will take effect on the date of operational year.
E. Any rental increase or rental decrease granted shall be rounded up or down to the nearest dollar.
F. If an application is postponed by an applicant, for whatever reason, for over one hundred and eighty (180) days after filing, then the application shall be deemed to have been denied without prejudice. If an application is not complete at the time of the initial hearing date, and remains incomplete for over one hundred and eighty (180) days beyond the filing date, then the application shall be deemed to have been denied without prejudice. For any application deemed automatically denied without prejudice by these provisions, the original application fees paid shall be nonrefundable; a new application, including new fees, shall be required to be submitted by the applicant if the applicant desires to seek approval for a rental increase. An applicant may submit a maximum of two (2) applications for each operational year; if these two applications are denied without prejudice pursuant to this provision, no further application may be submitted by that applicant for the same operational year. An applicant may withdraw an application at any time; if an applicant withdraws an application less than seven (7) calendar days prior to the initial hearing date, then the application fees paid shall be non refundable. An applicant may withdraw a maximum of two (2) applications for each operational year; if two (2) applications are withdrawn by the application for the same operational year, no further application may be submitted by that applicant for the same operational year.
G. Miscellaneous Fees
1. As part of a landlord's application for a rent increase, a landlord shall submit a schedule of all Miscellaneous Fees which are being charged to the tenants of its complex. This Miscellaneous Fee Schedule shall include:
a. The nature or type of the miscellaneous fee;
b. The amount charged for each fee;
c. The method by which the landlord has arrived at the charge; and
d. Any other information, including expenses incurred, which the landlord intends to present to justify the reasonableness of its charges.
2. The Administrator, at the time of the hearing on the landlord's application for a rent increase, shall consider the Miscellaneous Fees to be charged and, based on the reasonableness of the charges, shall approve, disapprove or modify said charges. All future increases for Miscellaneous Fees are prohibited unless first approved by the Administrator upon application by the landlord after notice to the tenants in accordance with the same notice requirements as provided for the application for rent increase.
3. For the purpose of this Ordinance, Miscellaneous Fees shall be any consideration, including cash, property, services, or otherwise, given by a tenant to a landlord in addition to the actual rent paid for the right to occupy a dwelling unit, for any amenity, service or property provided by or offered by the landlord, including such items as pool fees, pet fees, short-term fees, guest fees, late charges, restoration fees, bad check charges, as well as variations of any of the above.
4. Notwithstanding anything to the contrary as may otherwise be contained in this Miscellaneous Fees section, a landlord may apply just for a new Miscellaneous Fee charge or a Miscellaneous Fee increase separate from a landlord's application for a rent increase. For such a separate application, the landlord shall pay the same application fees as would be applicable to a separate Net CCMUA Surcharge application as those fees are set forth in ' 68-17(C).
H. Net CCMUA Surcharge:
1. A surcharge may be granted by the Administrator upon the complete and proper application by a landlord. Such surcharge shall be limited to the Net CCMUA Surcharge and to no other charges. Such surcharge shall be separate and distinct from the monthly rental amount due landlord, and shall not be used as a basis for subsequent percentage rental increases pursuant to '' 68-7(A), 68-7(B) or 68-8.
2. A complete and proper application for a Net CCMUA Surcharge requires the submission of the following by the landlord, otherwise pursuant to and in accordance with the provisions of ' 68-7(A).
a. Application fee in accordance with ' 68-16(C), unless this application for Net CCMUA Surcharge is combined with another application under this Ordinance.
b. Proof of taxes and municipal charges being paid in accordance with ' 68-5.
c. Proof from the Camden County Municipal Utility Authority that: (a) the subject apartment complex is effectively hooked-up or tied-in to the regional CCMUA system, and that (b) all sewer charges for the apartment complex have been paid to date. Notwithstanding the above, an applicant may apply for a Net CCMUA Surcharge prior to the actual hook-up into the system and the billing therefore, without the above-stated proofs if they are not yet available, but in no event shall the Net CCMUA Surcharge be charged to tenants until such time as hook-up is effective. The amount of any initial Net CCMUA Surcharge shall be based upon the actual amount billed by the Camden County Municipal Utilities Authority; in the event the CCMUA bills are less than the anticipated amount, then the tenants shall receive a credit for any overpayment.
d. A Net CCMUA Surcharge schedule computing the proposed surcharge for each rental unit, the current rent the current rent plus surcharge amount and the percentage of increase due to the surcharge.
e. Affidavit or certification from the applicant that the CCMUA sewer charges are being charged for all units for which the surcharge is being applied for or an explanation of which units (and why) the sewer charges are not being charged (i.e., units no longer being rented, with an explanation as to why no longer being rented.)
f. Proof in the form of a statement from the Gloucester Township Municipal Utility Authority of the amount of reduction, if any, in their sewer service charge resulting from the connection to the CCMUA regional system or a statement that no reduction has been made.
g. Notice to the tenants, on forms approved by the Administrative Officer and proof that service thereof was made on each affected tenant at least thirty (30) days prior to the scheduled hearing.
3. Notice of the Net CCMUA Surcharge application shall be made pursuant to the notice provisions as set forth in ' 68-7(A) , modified to reflect a Net CCMUA Surcharge application.
4. Failure of an application to meet the criteria set forth in ' 68-4: "Maintenance of Standards" may result in the Administrator denying the Net CCMUA Surcharge application.
5. A Net CCMUA Surcharge may be granted only once to each unit in an apartment complex; said surcharge shall continue indefinitely but shall terminate upon the cessation of CCMUA sewer charges to that unit, for whatever reason. Notwithstanding this provision, the granted Net CCMUA Surcharge amount may be automatically increased or decreased by the amount of an increase or decrease in the amount charged by the CCMUA for sewer service per unit, divided by twelve (to reach a monthly increase amount). Similarly, the granted Net CCMUA Surcharge amount shall be decreased automatically by the amount of any reduction made by the Gloucester Township Municipal Utility Authority for sewer service subsequent to the effective date of the surcharge, divided by twelve (to reach a monthly reduction amount). A landlord shall be required to submit proofs of the current Net CCMUA Surcharge, as computed, as part of any subsequent rental application , either under ' 68-7(A), ' 68-7(B) or ' 68‑8.
I. Unit Vacancy Stabilization/Rehabilitation.
A Unit Vacancy Stabilization may be granted by the Administrator upon the complete and proper application being filed by the owner/landlord. Unit vacancy stabilization shall be permitted on a per unit basis and shall be limited to those units applied for and approved as a rehabilitated unit. Unit vacancy stabilization may be granted by one time only per unit. Following approval for unit vacancy stabilization, the new approved rent shall be applied to the “rent role” and therefore, subject to rent stabilization.
An application for approval for Unit Vacancy Stabilization shall be filed with the Administrator, with the required fee, proof that all taxes, GTMUA and CCMUA charges are paid current and notification has been provided to all tenants of the units applied for at least 30 days prior to the date of the hearing.
The notice must state that the landlord has applied for unit vacancy stabilization, that the tenancy established at the outset of the leasehold shall be terminated. It shall also state that the tenant shall have the option to locate in another unit within the complex or to vacate the complex. If the tenant desires to locate to another unit within the complex the landlord shall have available another unit at a comparable location size and at equal rent to the rent currently being paid by the tenant. The notice shall state that the tenant shall have the “first right of refusal” to rent the vacated unit at the market rate established following approval.
Upon receipt of a completed application, an inspection of the unit or units scheduled for rehabilitation shall be made by the Administrator to determine present condition, date for completed rehabilitation and re-scheduled inspection following rehabilitation and approval for Unit Vacancy Stabilization. Following rehabilitation, the rehabed unit or units shall be submitted for review and approval for vacancy stabilization.
A rehabilitated unit shall be defined as a unit that has completed all the following:
Replaced and upgraded appliances;
Replaced and upgraded cabinetry;
Replaced and upgraded bathroom fixtures;
Replaced and upgraded carpet/flooring;
Replaced and upgraded heating and air-conditioning.
[Amended on 05-09-05 by Ord. O-05-15]
J. Unit Vacancy/Vacated Unit. [Amended on 03-10-08 by Ord. O-08-07]
Anything to the contrary notwithstanding, upon voluntary, un-coerced vacation of any rental unit for which rental increases are controlled by this Ordinance, a Landlord shall have the right to fix the rent for such a vacated rental unit at such a sum as the Landlord deems appropriate, without further application of this Ordinance.
Qualifications for Unit Vacancy/Vacated Unit.
In order for a Landlord to qualify, pursuant to this subsection, the Landlord shall file a written statement with the Administrator, signed by the vacating Tenant, certifying that the Landlord has not, in any manner, harassed or pressured the vacating Tenant into vacating the rental unit, and that the Tenant’s vacating of said unit is a voluntary act on the part of the tenant.
Except, however, a written certification of non-harassment/pressure shall not be required under the following circumstances:
a. The new proposed rent or rent increase does not exceed the total of all permissible increases authorized by this Ordinance.
b. The Tenant has vacated the rental unit without notice to the Landlord.
c. The rental unit has been vacated pursuant to a judicial mandate or eviction under the laws of the State of New Jersey.
d. The Tenant has refused to sign said certification and the Landlord files a written statement to the Administrator that the Landlord has provided to the Tenant a written notice, within five (5) days of the Landlord’s receipt of Tenant’s notice to terminate, explaining Tenant’s Rights against Harassment.
Re-Rental of Vacated Unit.
The Landlord shall file a monthly statement with the Administrator certifying:
a. The unit number, building number/letter, or name of Vacated Rental Units;
b. The rent paid by the vacating Tenant;
c. The vacating was voluntary, not the result of Landlord harassment, or was without notice or the result of Court order for eviction;
d. The rent agreed to be paid by the new Tenant.
e. There shall be “Notice” in the written Lease above Tenant’s signature, stating this unit is not subject to “Rent Stabilization Control”. The Tenant acknowledges that unit rent may be higher than other like units in the complex. [Added on 03-10-08 by Ord. O-08-07]
Harassment/Pressure.
Under this subsection, harassment/pressure is defined as any act, proceeding or event that leads to the reduction of standard, services, maintenance, health and safety conditions, furniture, furnishings or equipment caused by the Landlord with intent to force the Tenant to vacate the rental unit.
If the Tenant notifies the Administrator of harassment/pressure under this subsection, by filing written notice, the Administrator shall schedule a hearing with seven (7) days written notice to the Landlord and Tenant. A finding by the Administrator that such harassment/pressure did in fact exist, the Administrator may deny the Landlord the benefits of this subsection, and/or the Administrator may direct a reduction in rent pursuant to subsection 68-4. [Added on 10-11-06 by Ord. O-06-29]
68-8. Hardship Application.
A landlord, if qualifying, may apply for a hardship increase application. A hardship increase may be applied for at any time during the landlord's operational year. The landlord must comply with all notice provisions applicable to a standard rent increase [' 68-7(A)] as set forth in this Ordinance. A hardship application requires the same financial data presented for a rate of return increase pursuant to ' 68-7(B), except that items may be waived by the Administrator. Additionally, the applicant shall submit the following:
A. Tax returns for the three (3) most recent years.
B. A statement from the landlord outlining the tax benefits accrued to the owners.
C. A cash-flow statement, including debt service, for the most recent three year period and the project year.
D. A statement of indebtedness:
1. To whom owed
2. Payment terms
3. Interest rate
4. Collateral
5. Guaranties by owner
68-9. Rental Increases Restricted.
A. No landlord, after the effective date of this Ordinance, shall increase any rents of tenants of multiple dwellings subject to this Ordinance without first having made an application complying with the provisions of this Ordinance and therefore receiving approval of such increase.
B. A rental increase, except for a Hardship Application pursuant to ' 68-8 above, shall be granted only once within a twelve-month period.
68-10. Prohibited Increases.
Any rental increases authorized pursuant to this Chapter shall take effect at the expiration of the term of a lease or upon termination of a periodic tenancy. Prorated or partial increases are prohibited and any such prorated increase (for less than a month) shall be void. Any increase authorized for an operational year, but not actually implemented by the Landlord within said operational year, shall be deemed waived and shall thereafter be void; as intended by this prohibition, if a tenant is not actually paying the approved monthly rental amount, or any portion thereof, then it is deemed not to be "actually implemented". Any rental increase in excess of that authorized under this Chapter shall be void.
68-11. Initial Rentals.
The landlord of a dwelling being rented for the first time shall not be restricted in the rent charged for such dwelling. Any subsequent rent increases, however, shall be subject to the provisions of this Ordinance. In conformance with the intent of this Ordinance, none of the following dwellings shall be deemed to be a dwelling being rented for the first time:
A. A dwelling involved in a conversion to a condominium, co-operative or other similar form of common ownership.
B. A dwelling that has been remodeled or renovated due to fire or other type of casualty.
C. A dwelling that has previously been used as the superintendent's apartment or for any non-tenant use.
D. A dwelling that was previously subject to the provisions of this Ordinance but was not available for rent to tenants, for whatever reason, for a period of time and is once again available for rent to tenants.
E. A dwelling that has been converted from a one bedroom into a two bedroom by the construction of a partition wall, while not otherwise increasing the total floor space or living area of the unit itself.
68‑12. Exemption for Rent Rehabilitation Program.
The provisions of this Ordinance shall not apply to a multiple dwelling when it is a project rehabilitated or assisted by or under a rental rehabilitation grant or program, or under any federal or state program which pre-exempts local rent control. The landlord of a multi-dwelling which is exempt under this provision shall file annual reports with the Administrative Officer indicating any changes in ownership and confirming the continued exemption. Copies of the annual rent roles shall be attached to said report. The annual report shall be filed on or before December 31st of each year.
A. If the owner of a multiple dwelling participates in the Rent Rehabilitation Program of the Department of Housing and Urban Development, as administered through the State of New Jersey Department of Community Affairs, and accepts financing through such Program to rehabilitate said multiple dwelling, then the owner of such multiple dwelling shall be entitled to increase the rental amount charged for all units directly participating in the Rent Rehabilitation Program up to, but not to exceed, the adjusted Fair Market Rent (F.M.R.) for a comparable unit, based upon the annual schedule of Fair Market Rents promulgated by the Department of Housing and Urban Development effective October 1 of each year, adjusted per the applicable allowances for tenant‑furnished utilities and services (per the current HUD schedule) for the year applicable thereto.
B. Any subsequent rent increase beyond this initial increase for the first year of participation by the multiple dwelling in the Rent Rehabilitation Program shall be limited to, and shall not exceed, any comparable increase as set forth by the annual HUD F.M.R. schedule, as adjusted for that unit by the appropriate allowances for tenant‑furnished utilities and services, and any such rent increase shall result in a rental amount in conformance with and not exceeding the adjusted F.M.R. amounts as so established.
C. Nothing contained within this section shall be construed to regulate rental amounts or rent increases for those units occupied by tenants entitled to subsidies under any governmental program wherein the appropriate governmental agency determines the amount of rent to be paid for said units.
D. The owner of any such multiple dwelling shall furnish evidence of effective participation and final sign‑off approval from the appropriate State or Federal agency administering the Rent Rehabilitation Program as part of an initial application to the Administrator to confirm the initial rental increases as allowed by Paragraph A above in accordance with the HUD F.M.R. annual schedule and allowance schedule (for tenant‑furnished utilities and services), prior to any such rental increase becoming effective. Similarly, evidence of continuing participation, of continuing eligibility and of continuing conformance to the appropriate regulations of the Rent Rehabilitation Program shall also be provided to the Administrator, in order for the Administrator to confirm subsequent annual increases, prior to the effectiveness of any such subsequent increase. All applications under this section, in order to qualify for this exemption, shall contain proof that all units participating in the Rent Rehabilitation Program are in compliance with the Federal Housing Quality Standards.
68-13. Violations and Penalties.
An intentional violation of any provision of this Ordinance, including but not limited to the willful filing of any material misstatement of fact, shall be a disorderly person’s offense and shall be punishable by a fine not exceeding two hundred ($200.00) dollars. Each day that a violation occurs shall be considered a separate offense. A violation affecting more than one (1) leasehold unit shall be considered separate offenses.
68-14. Noncomplying Lease Provisions Void.
Any provision of a lease or other agreement whereby any provision of this Ordinance is waived shall be deemed against public policy and shall be voided.
68-15. Appeal to the Governing Body or as may be Designated.
A. Any interested tenant may appeal to the governing body or as may be designated, any final decision on any application for rental increases set forth in ' 68-7(A). Such appeal shall be made within forty -five (45) days of the date of such final decision. The appeal to the governing body or as designated shall be made by serving the Municipal Clerk in person or by certified mail with a notice of appeal specifying the grounds thereof and the name and address of the appellant and the name and address of his attorney, if represented. Such appeal shall be decided by the governing body, or as designated, only upon the filed information.
B. Notice of the meeting to review the record shall be given by the governing body, or as designated, by personal service or certified mail to the appellant, to the landlord at least ten (10) days prior to the date of the meeting.
C. The governing body, or as designated, shall conclude a review of the record below not later than forty-five (45) days from the date of receipt of the transcript of the hearing unless the appellant consents in writing to an extension of such period. Upon the filing of an appeal, the Municipal Clerk shall order preparation of a transcript, the cost of which is to be paid by the Appellant. Failure of the governing body to hold a hearing and conclude a review of the record and to render a decision within such specified period without written consent of the appellant shall constitute a decision confirming the action of the Administrator.
D. The governing body may reverse, remand or affirm, wholly or in part, or may modify the final decision of the Administrator.
E. An appeal to the governing body, or as designated, shall stay all proceedings in furtherance of the action in respect to which the decision appealed from was made, including the implementation of any rent increase.
F. The governing body shall mail a copy of the decision to the appellant or, if represented then to his attorney, without separate charge and for a reasonable charge to any interested party who has requested it, not later than ten (10) days after the date of the decision.
H. Nothing in this Ordinance shall be construed to restrict the right of any party to obtain a review by any court of competent jurisdiction according to law.
68-16. Application Fees; Escrow.
A FEE SCHEDULE HAS NOT AS YET BEEN REVIEWED BY THE TOWNSHIP COUNCIL
A. An application pursuant to ' 68-7(A) shall be accompanied by an application fee computed by multiplying the number of dwelling units by two ($2.00) dollars per dwelling unit, but in no event shall the fee be less than two hundred ($200.00) dollars, except in the case of six (6) or less rental spaces contained in any single complex, which application fee shall then be fifty ($50.00) dollars.
B. Escrow
1. An application filed pursuant to ' 68-7(B) or ' 68-8, in addition to the application fee set forth in ' 68-17(A) above, shall be accompanied by an escrow deposit computed by multiplying the number of dwelling units by three ($3.00) dollars per dwelling unit, but in no event shall the fee be less than one thousand dollars ($1,000.00) dollars for 25 units or less, or three thousand ($3,000.00) dollars for 26 units or more.
2. The total deposit collected pursuant to ' 68-17(B)(1) above shall be placed in an escrow account with the Gloucester Township Housing Authority, to be applied to the payment for any services rendered by an accountant, auditor, stenographer, real estate appraiser or attorney retained pursuant to ' 68-7(B)(9).
3. Within sixty (60) days after the completion of proceedings on an application for a rent increase filed pursuant to ' 68-7(B) or ' 68-8, the Gloucester Township Housing Authority shall apply any balance remaining in the escrow account as payment for the services of any accountant, auditor, stenographer, real estate appraiser or attorney whose professional services were utilized by the Administrator. If there remains any balance, it shall be refunded to the applicant. If a deficit in the escrow account occurs due to unpaid bills for any accountant, auditor, stenographer, real estate appraiser and attorney, then the applicant shall post such additional escrow needed to bring the balance to zero; no rental increase granted shall be effective until such time as the deficit is fully paid.
C. Net CCMUA Surcharge/Miscellaneous Fees
An application pursuant to ' 68-7(H) (I) (Net CCMUA Surcharge) and/or pursuant to ' 68-7(G) Miscellaneous Fees, if not combined with another application under this Ordinance, shall be accompanied by an application fee as follows:
1-5 Units Twenty-five ($25.00) Dollars
6-100 Units Fifty ($50.00) Dollars
Over 100 Units One Hundred ($100.00) Dollars
68-18. Construction of Provisions.
This Ordinance, being necessary for the protection of the health, safety and welfare of the Township of Gloucester, its inhabitants and citizens, shall be liberally construed to effectuate the purposes thereof.
68-19. Repealer.
All ordinances and provisions thereof inconsistent with the provisions of this Ordinance shall be and are hereby repealed to the extent of such inconsistency.
68-20. Severability.
If any article, section, subsection, sentence, clause or phrase of this Ordinance is for any reason held to be unconstitutional or invalid, such decision or invalidity shall not affect the remaining portions or provisions of this Ordinance.
68-21. When Effective.
This Ordinance shall take effect immediately after final passage and publication in accordance with the laws of the State of New Jersey.