Background:

Rent leveling or rent control was adopted in New Brunswick in the mid-1970's. The purpose of the ordinance is to allow owners to receive a fair return on their investment and to protect tenants from steep annual rent increases. The process allows for mediation for rent disputes and for binding decisions regarding allowable rent increases.

Rent Leveling Board:

The Board consists of 5 members and 2 alternates, with at least 1 tenant, 1 landlord and 1 homeowner being members. The ordinance also requires that a student tenant be given consideration for the tenant or tenant alternate position.

• establishing rental increase limits
  
• conducting hearings to settle disputes
  
• granting surcharge relief
  
• setting rules and regulations to implement the ordinance

Apartments Covered:

All rental units except:

• owner-occupied 1-3 family units
  
• public housing units
  
• section 8 substantial & mod rehab units
  
• new construction units for 36 months after initial occupancy
  
• substantially rehabbed units in 1-4 family buildings (rehab cost must equal at least 75% of the assessed value)
  
• new construction units exempted by State statute
  

Rent Increases:

The Rent Leveling Board adopts the maximum increase limit annually. The increase can not be less than 2.5% or more than 5.5%

Maximum increase for 2003: 2.5%

Vacancy Decontrol:

Upon the voluntary vacancy of a unit or after a legal eviction, the owner may apply for decontrol of the unit and may then rent the unit for the initial lease to a new tenant at a mutually agreeable rent. Rent control applies to any subsequent leases with the same tenant. Vacancy decontrolled units must be inspected by the City of New Brunswick prior to decontrol.

Inspection fee: $20

Filing A Complaint:

A tenant or landlord with a complaint can file a complaint form with backup documentation with the Rent Leveling Office at 25 Kirkpatrick Street. The Rent Leveling Office will attempt to mediate the dispute between the aggrieved parties. If the dispute remains unresovled, the matter will be heard by the Rent Leveling Board. The decision of the Board is binding.

Surcharges:

• Tax Surcharge: for increased property taxes
  
• Hardship Surcharge: owner may apply for if operating costs exceed 60% of gross revenue
  
• Utility Surcharge: for increased owner paid utilities
  
• Capital Improvement Surcharge: owner may apply for improvement that provide a new tenant benefit
  
• Insurance Surcharge: owner may apply for if insurance costs exceed the previous year’s by 10%