Borough of Bergenfield, NJ Chapter 240 Rent Control

[HISTORY: Adopted by the Mayor and Council of the Borough of Bergenfield 12-2-1975 by Ord. No. 1045. Amendments noted where applicable.]

§ 240-1 Definitions.

As used in this chapter, the following words and terms shall have the following meanings unless otherwise specifically provided:

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 Bergen and Borough of Bergenfield and occupied or unoccupied and offered for rent.

DWELLING

Includes any building or structure or trailer or land used as a trailer park, rented or offered for rent to one or more tenants or family units. Exempt from this chapter are motels, hotels and similar type buildings and housing units of two units or less. Housing units, newly constructed and rented for the first time, are exempted, and the initial rent may be determined by the landlord. All subsequent rents shall be subject to the provisions of this chapter.

HOUSING SPACE

Includes that portion of a dwelling, rented or offered for rent for living and dwelling purposes to one individual or family unit, together with all privileges, services, furnishings, with improvements connected with the use or occupancy of such portion of the property.

PRICE INDEX

The consumer price index (all items) for the region of the United States of which Bergenfield, New Jersey, is a part, published periodically by the Bureau of Labor Statistics, United States Department of Labor.

§ 240-2 Establishment of rents.

[Amended 12-2-1986 by Ord. No. 2024; 9-17-1996 by Ord. No. 2205]

Establishment of rents between a landlord and tenant, to whom this act is applicable, shall be limited, upon the expiration of a lease or periodic tenancy, to a sum which shall not exceed 4% of the rental charge for the calendar year prior thereto. Said increase may be effected on each annual anniversary date of the commencement of the term of said lease.

§ 240-3 Vacancy decontrol.

[Amended 6-15-1976 by Ord. No. 1056; 6-7-1977 by Ord. No. 1084; 6-20-1978 by Ord. No. 1111; 6-17-1979 by Ord. No. 1131]

Notwithstanding any limitations upon permissible rent increases under any other provisions of this chapter, upon the voluntary, uncoerced vacation of any apartment, rent increases for which are controlled in this chapter, the landlord shall have the right to fix the rent for such vacated apartment at such a sum as he deems appropriate.

A. In order for a landlord to qualify for the vacancy decontrol rent increase, the landlord shall first be required to file with the Rent Leveling Board a written statement, signed by the vacating tenant, certifying to the Board that the landlord has not, in any way, harassed or pressured the tenant into vacating the housing space unit and that the vacation of such unit was a voluntary act on the part of the tenant. Such noncoercion certification shall not be required in order for the landlord to qualify for the vacancy decontrol increase, if (1) the increase does not exceed the total of all permissible increases authorized by any other provisions of this chapter, (2) the tenant has moved from the unit without notice to the landlord, (3) the unit has been vacated pursuant to a judicially mandated eviction, or (4) the tenant has refused to sign such certification; and upon appeal by the landlord, the Rent Leveling Board has found that such refusal was unwarranted and that there was in fact no coercion exerted by the landlord upon the vacating tenant. A hearing pursuant to (4) above shall be held before the Rent Leveling Board upon at least seven days' notice to the public and the vacating tenant. The decontrol provision of this section shall only apply to dwelling units which are physically vacated subsequent to the effective date of this section.

B. Upon vacation of any apartment hereafter, the landlord shall file a statement with the Rent Leveling Board, certifying to the Board (1) the apartment and building numbers of such dwelling unit, (2) the rent paid by the vacating tenant, (3) the maximum rent increase which would be permissible under the other provisions of this chapter, (4) the number of days such apartment remains vacant, (5) the rent agreed to by the new tenant for such apartment, and (6) that the vacation of such apartment was the voluntary act of the vacating tenant and that such vacation was not the result of landlord harassment or pressure upon such vacating tenant. The Rent Leveling Board shall submit monthly reports to the governing body summarizing the number of apartments vacated during each such month and the differences, if any, between the permissible rent increases under the other provisions of this chapter as compared to the increase in rent due to the application of this section. Such monthly reports shall also include the statement of the number of complaints received by the Board with respect to alleged coercion by landlords for the purpose of forcing tenants to vacate apartments.

C. The vacancy decontrol provision of this section shall apply to vacancies created by the expiration of a lease or tenancy term or by a tenant moving from the premises prior to the expiration of the term of his lease or tenancy, provided the landlord certifies such vacancy to the Rent Leveling Board.

§ 240-4 Expiration of lease.

Any rental increase at a time other than 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.

§ 240-5 Notification of increase; hearing.

Any landlord seeking an increase in rent shall notify the tenant by certified mail of the calculations involved in computing the increase, including the consumer price index at the date of entry of the lease, the consumer price index 90 days before the expiration of the lease, the allowable percentage increase and the allowable rental increase. Such landlord, no later than 20 days prior to the date the increase in rent is to take effect, shall file the calculation and proposed rent increase with the Rent Leveling Board for review. In the event the Rent Leveling Board initially determines that such increase shall be in violation of this section, it shall notify the landlord and the tenant in writing of its determination and fix a date for a hearing with reference to this issue. No rent increase shall be effective until the conclusion of such hearing.

§ 240-6 Monthly reports.

[Added 6-20-1978 by Ord. No. 1111; amended 6-17-1979 by Ord. No. 1131]

A. Any landlord who is the owner of property within the Borough of Bergenfield which is affected by the provisions of this chapter shall file with the Rent Leveling Board on a monthly basis, no later than the 15th day of each month, a written report on forms to be designated by the Rent Leveling Board, which report shall contain the following information:

(1) All changes in occupancy of any rental unit in such property during the previous calendar month.

(2) In the event of such changes in occupancy, the name or names of the former tenant, the name or names of the new tenant, the term of the new tenancy, the amount of the former rent on a monthly basis and the amount of the new rent on a monthly basis.

(3) In the event of no change in occupancy, a statement to that effect.

B. In the event a landlord fails to file such report, or in the event the landlord files a report which is knowingly or willfully false, such failure to file or filing of such false report shall be deemed a separate violation of this chapter, punishable pursuant to the provisions of § 240-13 herein.

§ 240-7 Tax surcharge.

A. Formula.

(1) A landlord may seek a tax surcharge from a tenant because of an increase in municipal property taxes. The tax surcharge shall not exceed that amount authorized by the following provisions.

(2) The landlord shall divide the increase in the present property tax over the property tax of the previous year by the total annual rent for all dwelling units, occupied or unoccupied, and whether or not actually received, on such property for the said year to determine the property tax increase and a fixed percentage of rent for every tenant. The annual rent for each residential unit or apartment shall be multiplied by such fixed percentages to determine the annual amount of property tax surcharge for each unit or apartment.

[Amended 6-20-1978 by Ord. No. 1111]

B. Notification of surcharge. Any landlord seeking a surcharge shall notify the tenant by certified mail of the calculations involved in computing the tax surcharge, including the present property tax for the dwelling, the property tax for the dwelling for the previous year, the number of square feet in the dwelling, the tax increase per square foot, the number of square feet occupied by the tenant and the maximum allowable surcharge.

C. Installments. The tax surcharge each tenant is liable for shall be paid in 12 equal monthly payments.

D. Surcharge not considered rent. The tax surcharge shall not be considered rent for purposes of computing cost-of-living rental increases.

E. Tax appeal for property tax reduction.

[Amended 6-20-1978 by Ord. No. 1111]

(1) In the event a tax appeal is taken by the landlord and the landlord is successful in the appeal, and the tax is reduced, the tenant shall receive 50% of the reduction as applied to its portion after deducting all expenses incurred by landlord in prosecuting the appeal. In the event real estate taxes are reduced for any other reason, the tenant shall receive 65% of the reduction as applied to its tax portion.

(2) The property tax rebate for each tenant under this section shall be computed by the landlord in the following manner.

(3) The property tax reduction for the year shall be divided by the total annual rent for all dwelling units or apartments, occupied or unoccupied, and whether or not actually received, on such property for the said year to determine the property tax rebate or credit as a fixed percentage of rent for every tenant. The annual rent of each apartment unit shall be multiplied by such fixed percentage to determine the annual amount of property tax rebate for each apartment or unit.

§ 240-8 Rent Leveling Board.

A. Creation.

[Amended 12-19-1978 by Ord. No. 1122]

(1) There is hereby created a Rent Leveling Board within the Borough. The Board shall consist of two landlords owning apartment rental property within the Borough, two tenants residing within the Borough, and three other persons who reside in the Borough. The members of the Board shall be nominated by the Mayor and with the advice and consent of the Council, appointed by the Mayor. If the Mayor fails to nominate within 30 days of vacancy or if the Council fails to confirm any nomination made by the Mayor, then, after the expiration of 30 days, the Council shall appoint the members. The initial terms of office of the members shall be as follows:

(a) One landlord and one tenant: one-year term.

(b) One landlord and one tenant: two-year term.

(c) One other member: three-year term.

(d) One other member: two-year term.

(e) One other member: one-year term.

(2) The terms of office of all new members appointed or all members reappointed after initial terms as outlined above shall hereafter be three-year terms. In addition, there shall be appointed two alternates in the same manner as the members of the Board are appointed, one alternate to be a tenant residing within the Borough and one alternate to be a landlord at apartment rental property within the Borough. Such alternates shall serve one-year terms.

B. Powers of Board. The Rent Leveling Board is hereby granted and shall have and exercise, in addition to other powers herein granted, all the powers necessary and appropriate to carry out and execute the purposes of this chapter, including but not limited to the following:

(1) To issue and promulgate such rules and regulations as it deems necessary to implement the purposes of this chapter, which rules and regulations shall have the force of law until revised, repealed or amended from time to time by the Board in the exercise of its discretion, provided that such rules are filed with the Borough Clerk.

(2) To supply information and assistance to landlords and tenants to help them comply with the provisions of this chapter.

(3) To hold hearings and adjudicate applications from landlords for additional rental as herein provided.

(4) To hold hearings and adjudicate applications from tenants for reduced rental as herein provided.

C. Enforcement officer.

[Amended 6-20-1978 by Ord. No. 1111; 6-17-1979 by Ord. No. 1131]

(1) The Rent Leveling Board shall appoint one of its members annually to serve as an enforcement officer. Should the property be of interest to the enforcement officer, the Board shall act as a whole and the affected individual shall recuse. The enforcement officer shall have the power to enforce this chapter by issuing complaints in the Municipal Court for violation of this chapter.

[Amended 4-20-2021 by Ord. No. 21-2580]

(2) The Board shall give both landlord and tenant reasonable opportunity to be heard before making any determination.

(3) The Borough Administrator be and he is hereby authorized to assign an existing employee of the Borough as an administrative assistant to the Enforcement Officer in order to assist said officer in the performance of his or her duties. Such administrative assistant shall coordinate the receipt of all reports required by this chapter and, in addition, shall make initial investigations as to all violations of this chapter, reporting the same back to the Enforcement Officer for action. Said administrative assistant shall have such other and further duties as may be determined by the Rent Leveling Board with the consent of the Borough Administrator and consistent with law.

D. Additional powers of the Board. The Rent Leveling Board is granted and shall have and exercise, in addition to the specific powers enumerated above, the following powers:

(1) Increased rental. In the event that a landlord cannot meet his mortgage payments and maintenance, he may apply to the Rent Leveling Board for increased rental. The Board may grant the landlord a hardship rent increase to meet these payments. Prior to any such application to the Board, a landlord must post in the lobby of each building, or if no lobby is present, in a conspicuous place in and about the premises, a notice of application setting forth the basis for the application. The notice must be posted for at least five days prior to the proposed date of hearing.

(2) Capital improvements. The landlord may seek additional rental for major capital improvements or services. The landlord must notify each tenant by certified mail of the total cost of the completed capital improvement or service, the number of years of useful life of the improvement as claimed by the landlord for purposes of depreciation for income tax purposes, the average cost of the improvement, the total number of square feet of the dwelling or garden apartment complex, the total square feet occupied by the tenant and the capital improvement surcharge he is seeking from each tenant and the date, time and place of the scheduled hearing. The landlord seeking a capital improvement or service surcharge shall apply for the surcharge to the Rent Leveling Board who shall determine if the improvement is a major improvement and if so shall permit such increase to take place. If the increase is granted, it shall not be considered rental and calculated in cost-of-living increases. In any event, no increase authorized by this subsection shall exceed 15% of the tenant's annual rent.

(3) Return on investment. In addition to the increased rental set forth in this subsection, the Rent Leveling Board may grant rental increases to a landlord in order to insure that the landlord may obtain a reasonable return on investment. The determination on what is a reasonable return on investment is within the discretion of the Board. Prior to the granting of an increase under this subsection, the Board shall hold a hearing to determine the validity of the landlord's application. Not less than five days prior to the date scheduled for the hearing, the landlord shall post a notice in the lobby of each building, or if no lobby is present, in a conspicuous place in and about the premises, setting forth the application for increase, the basis thereof, the date, time and place of hearing.

(4) Increase apportioned among tenants. Any increase in rent granted pursuant to this subsection shall be apportioned among all tenants by dividing the total authorized annual increase by the total number of square feet of apartment space in the dwelling; the product shall be the increase per square foot. Each tenant shall be liable for an increase in rent equivalent to the increase per square foot, multiplied by the total number of square feet occupied by the tenant.

§ 240-9 Standard of service to be maintained.

During the term of this chapter, the landlord shall maintain the same standards of service, maintenance, furniture, furnishings, and equipment in the housing space and dwelling as provided or was required to provide by law or lease at the date the lease was entered into.

§ 240-10 Meetings of Rent Leveling Board; hearings; decisions.

[Amended 6-16-1981 by Ord. No. 1165]

A. A quorum is the majority of the full authorized membership of the Rent Leveling Board.

B. All actions by the Rent Leveling Board shall be taken by a majority vote of the members at said agency present at the meeting.

C. Testimony of all witnesses relating to a hearing shall be taken under oath or affirmation by the presiding officer.

D. The decision of the Rent Leveling Board shall be in the form of a written resolution containing findings and conclusions which shall be adopted either on the date of the meeting at which said Board granted or denied an application or within 45 days of such meeting by the adoption of a resolution of memorialization setting forth the decision and findings and conclusion of said Board. The 45 days may be extended with the consent of applicant. The date of the adoption of memorialization shall constitute the date of decision.

E. The Secretary of the Board or the Borough Clerk shall cause notice of the Board's action to be published once in the official newspaper of the municipality. Within three days of the decision, the landlord shall post a copy of the resolution in a prominent location in the building and shall provide a copy to any tenant who has made a written request for same.

§ 240-11 Appeals.

[Amended 6-16-1981 by Ord. No. 1165]

The right of appeal from a decision of the Rent Leveling Board shall be by civil action in the Law Division of the Superior Court pursuant to Rules Governing the Courts of the State of New Jersey.

§ 240-12 Exemptions.

A. Any rental increase in excess of that which is permitted by this chapter is hereby declared to be null and void. In that prior regulations have been invalidated for the period commencing on March 1, 1974, and in that during that period several ordinances were adopted amending the permissible rentals, the following schedule is hereby established and shall be used in determining effective permissible rentals for the following periods:

(1) From November 8, 1972 through September 8, 1974

B. Establishment of rents between a landlord and tenant at the expiration of a lease or at the termination of a periodic tenant shall be based upon a percentage increase in rent no greater than the percentage increase between consumer price index 90 days prior to the expiration or termination of the lease and the consumer price index at the date the lease was entered into. For a periodic tenant, whose lease term shall be less than one year, an increase shall be no greater than the average consumer price index differential for the calendar year prior thereto.

C. The provisions of this chapter from September 8, 1974, through the repeal, modification, amendment or supplement of this chapter. As to all other procedural aspects of rent regulations, other than those which establish permissible rents, during the above-mentioned periods, except where not in accord with due process, the procedural provisions of this chapter shall be retroactive to March 1, 1974.

D. Exemptions applicable to property owners eligible under N.J.S.A. 2A:42-84.1 through 2A:42-84.6 (Newly Constructed Multiple Dwellings).

[Added 4-20-2021 by Ord. No. 21-2580]

(1) Any property owner(s) eligible under or pursuant to this status must notify the local clerk of the Rent Board of their status for the period of eligibility.

(2) Property owner(s) must notify any prospective tenant in writing of exemption to Rent Control Board status.

§ 240-13 Violations and penalties.

A willful violation of any provisions of this chapter, including but not limited to the willful filing with the Rent Leveling Board of any material misstatement of fact, shall be punishable by a fine of not more than $500 and imprisonment for not more than 90 days, or both. A violation affecting more than one leasehold shall be considered a separate violation as to each leasehold.

§ 240-14 Effective date; termination.

The provisions of this chapter shall take effect immediately upon final passage and publication as required by law and shall be continuously reviewed by the Mayor and Council as to the emergency housing situation within the Borough and shall remain in full force and effect until repealed or modified by ordinance.

§ 240-15 Statute of limitations.

[Added 7-18-1995 by Ord. No. 2180]

A. Time in which to commence action. Every action cognizable under this chapter, and subsequent amendments thereto, shall be commenced within 18 months next after the cause of any such action shall have accrued.

B. Definition of "subsequent amendments." The reference to "subsequent amendments thereto" contained in Subsection A above shall include all ordinances that have been enacted into law or will be enacted into law in the future as to amendments and/or supplements to Bergenfield Ordinance No. 1045.

C. Commencement of action. The date of commencement of such action, as set forth in Subsection A above, shall be the date on which a written complaint is accepted for filing by the secretary (or his or her agent) of the Bergenfield Rent Leveling Board, located at the Bergenfield Municipal Building, Bergenfield, New Jersey.

D. Filing of complaint. The Secretary (or his or her agent) of the Bergenfield Rent Leveling Board shall accept a written complaint for filing, provided that it complies with the following procedural requirements:

(1) The written complaint shall be made on forms provided by the Board, which shall be made available at the office of the Borough Clerk and/or the office of the Secretary of the Bergenfield Rent Leveling Board, or on forms that are substantially similar to the forms provided by the Board.

(2) The complainant shall attach to such written complaint all written correspondence and true copies of all relevant leases relating to the complaint.

(3) The complainant shall pay any filing fee as may be required for the filing of such complaint.

E. Amendment to complaint.

(1) Subsequent actions. A complaint that has been accepted for filing may be amended to include ongoing or additional actions that accrue subsequent to the filing of the written complaint, provided that the respondent to such complaint is served with written notice by the complainant of such subsequent actions in advance of the final hearing before the Board. The Board upon application may grant the respondent an adjournment of the final hearing in order to allow the respondent additional time in which to prepare a response to the subsequent actions. The Board shall routinely allow such amendments to the complaint, upon written request by the complainant. The Board shall routinely allow requests for adjournment of a final hearing in order to allow the respondent additional time in which to prepare a response to such amendments, upon written request by the complainant.

(2) Prior actions. Any proposed amendments to the complaint that pertain to an action or actions that predate the filing of the original complaint shall not be allowed without the permission of the Bergenfield Rent Leveling Board, and only upon written application to the Board by the complainant after a hearing, and upon written notice of such application and hearing date by the complainant to the respondent at least 20 days in advance of such hearing.

F. Prospective application of this chapter. This section shall apply prospectively only. This section shall not apply to any matters pending before the Rent Leveling Board as of the effective date of this section. A matter shall be deemed to be pending before the Rent Leveling Board if a written complaint has been accepted for filing by the Secretary (or his or her agent) of the Bergenfield Rent Leveling Board.