1. To hold hearings at convenient times, dates and places after proper notices of the hearing and purposes thereof be given to all affected parties. Said hearings to be scheduled no less than once per month.
2. To permit parties to be represented by counsel at such hearings, to require the furnishings of a transcript of the hearing at the expense of the party making the application, as needed, to require of the parties such other materials and documents as may be necessary in making any determination on application or complaint.
3. To hear and adjudicate a complaint of an illegal increase up to 13 moths after the effective date of the disputed increase and to order and direct the reimbursement by the landlord to the tenant any and all sums or monies exacted from tenants in violation of this section, rounding off to the nearest dollar in accordance with general accounting principles.
4. To supply information and assistance to landlords and tenants in order to help them comply with the provisions of this section.
5. To enforce the provisions of this chapter and to initiate proceedings in a municipal court for willful violations thereof.
6. To issue subpoenas to compel the attendance of witnesses and the production of books and records in connection with hearings held pursuant to the provisions of this chapter.
7. The chairperson or presiding officer of the board may administer oaths and take testimony and shall afford the landlord and tenant reasonable opportunity to be heard before the board and shall render any determinations.
8. To issue and promulgate such rules and regulations as it deems necessary to implement the purposes of this section, which shall have the force of law until revised, repealed, or amended and which rules shall be filed with the city clerk.
9. To request of the mayor and city, to provide such supporting personnel as may become necessary to effectuate the purpose of this section and the powers of the board.
10. To grant surcharge relief whenever it deems necessary as further set forth in this chapter.

1. During the term of the rental, the landlord shall maintain the same standard of service, maintenance, furnishings or equipment in the dwelling unit as he was required to do at the commencement of the lease. An individual tenant or class of tenants who do not receive substantially the same standard of service, maintenance, furnishings or equipment may appeal to the rent leveling board for a determination of the reasonable rental value of the dwelling unit in view of the deficiency. Upon such determination such tenant or class of tenants shall only be required to pay that reasonable value in lieu of full rental payment, until the deficiency is corrected.
   
   
2. Any person claiming to be aggrieved by a violation of this sections, including any member of the rent leveling board or any party coming before it, may individually or through his own counsel, make, sign, and file a written complaint with the rent control board. Thereafter, such matters shall be set down for a hearing and adjudicated according to the rules of the board.
   
   
3. Furthermore, any tenant contending that this dwelling unit is not properly maintained or supplied may seek relief under the applicable provisions of the housing and property maintenance code of the City of New Brunswick.

1. By a percentage equal to the change to the Consumer Price Index for all Urban Consumers as of September 30 of the preceding calendar year. The base month and year to determine the percentage increase shall be September 1985. Said increase shall not be less than 2.5 percent nor more than 5.5 percent of the base rent. The computation of said base rent will not include in its calculations any utility surcharge, tax surcharge or capital improvement surcharge; provided that where the landlord has not increased the rental income the maximum percent for any one year, the next increase under this subsection may include the difference between the percent the rental was increased and the maximum increase allowed at the time of the increase for each consecutive preceding year, not to exceed two years, where said rental has not been increased by the maximum allowed. Any such increase allowed under this subsection shall be payable in 12 equal payments, owing monthly, or in similar proportions for a periodic tenant. Said increase shall not be available to the landlord in the event that he has received a vacancy decontrol rent increase during the preceding 12 month period.

1. Vacancy Decontrol. Upon the voluntary, uncoerced vacation of any apartment for which rent increases are controlled by the terms of city’s rent control ordinance, and upon compliance with this section, at the time of the re-rental of a dwelling unit pursuant to this section, a landlord is free to rent said unit at a rental mutually agreeable to the landlord and the prospective tenant. The unit vacated shall be decontrolled for the initial lease only. The new rent shall not include nor shall the Landlord continue to collect any amount as a capital improvement surcharge or hardship increase which may have been previously been granted by the rent leveling board or previously charged by the Landlord in accordance with the terms of the rent leveling ordinance.
   
   Should a tenant request and should the landlord approve a move by a tenant from one apartment to another within the same complex, vacancy decontrol shall apply to the apartment vacated by the tenant whereas vacancy decontrol shall not apply to the unit to which the tenant moves. A landlord shall not unreasonably deny a request by a tenant to transfer to a different unit within the same complex.
   
   
2. Qualification for Vacancy Decontrol Rent Increase. In order for the landlord to qualify for vacancy decontrol rent increase, the landlord will be required to file a landlord certification upon vacation of a dwelling unit with the rent leveling board, within ten days after renting to a new tenant, which certification shall include, but not limited to, the following information:

   1. Property address;
   2. Apartment number;
   3. Vacating tenant’s monthly base rent;
   4. Vacating tenants, surcharges (utilities, tax, capital improvement);
   5. New tenant’s monthly base rent;
   6. Name of owner, address of owner; and
   7. Telephone (home, business) of owner.

1. By the former tenant stating that the vacancy was accomplished by voluntary choice of the tenant; or
2. By the landlord stating that the vacancy was accomplished by a legal process of law identifying the Court Docket Number; or
3. By the landlord stating that the vacancy was accomplished by the willful abandonment by the former tenant; or
4. By the landlord stating that the vacancy was accomplished by the tenant upon termination of a written lease or other periodic tenancy.

1. The landlord may seek a tax surcharge from a tenant due to an increase in municipal property taxes. The tax surcharge for any year shall not exceed the amount authorized by the following formula:
   
   

   The landlord shall divide the increase in the present property tax of the previous year by the total square feet in the building containing the dwelling unit, to obtain the tax increase per square foot. The tenant shall not be liable for a tax surcharge exceeding the tax increase per square foot multiplied by the number of square feet in the dwelling unit plus his proportionate share of the increase for the footage of the common areas including the hallways and grounds.
   
   
2. The tax surcharge each tenant is liable for shall thereafter be payable in 12 equal payments, owing monthly, or in similar proportions for a periodic tenant, and shall be in addition to the usual rental owed. Thereafter, the tax surcharge or surcharges, if more than one year’s tax increase is involved, shall be payable proportionately at the same time the usual rental is payable, and may be charged for any tenancy in addition to the usual rental. The tax surcharge increase shall not be considered rent for the purpose of commuting rent increases, as set forth in section 24-7 above.

1. Any present or past tenant, shall be entitled to a pro rata portion of the refund allowed under this section for the period for which it was imposed upon the tenant. The landlord shall be authorized to keep any unclaimed refunds due tenants which have moved and cannot be located.
   
   
2. If the landlord is successful in his tax appeal and upon the final disbursement of the funds to the tenants, the landlord must file a certification of compliance with the provisions of this section with the rent control board within 30 days.

1. A landlord may apply to the rent leveling board for a hardship surcharge whenever it is determined that the reasonable and necessary operating expenses have exceeded 60 percent of the gross maximized annual income of a residential rental property. The landlord may not apply for any relief under this section until he has owned said property for at least 12 months.
   
   
2. The landlord shall make application to the local rent leveling board together with all necessary certification including an application by the owner and his agent to demonstrate that they are not earning a fair net operating income. The application shall include:

1. The amount of increase and percentage of increase requested.

2. A statement for three preceding 12 month periods of gross rentals, actual expenses profit and loss statements, and financial statements incurred for said 12 months in connection with the operation of the building(s) to be adjusted to reflect the actual period of time applicant has owned the building if owned for less than three years. All materials submitted and requested shall be prepared by an independent accountant who is not an employee of the landlord in accordance with generally accepted accounting principles and shall be certified under oath by the applicant to be true and correct, provided, however, that should the applicant be a corporation, such certification shall be made by its executive officer.

3. A statement containing the date of purchase, purchase price, original investment and financing arrangements and present assessed value, and, if inherited, the value declared in federal estate and inheritance tax return.

4. A list of all present owners of the property.

5. A landlord’s affidavit setting forth that he is a reasonably efficient operator of the residential rental property; and that the property is in full compliance with all state and local laws pertaining to tenant’s rights and housing and property maintenance codes.

6. The landlord shall be required to pay five hundred ($500.00) dollars to the rent control board which sum shall be maintained in escrow for the payment of the review of landlord’s account by the board’s expert. Any unused portion of said payment shall be returned to the landlord.

c. In considering hardship applications, the rent leveling board shall give due consideration to any and all relevant factors including but not limited to the following:

1. The level and quality of service rendered by the landlord in maintaining and operating the building.

2. The presence or absence of reasonably efficient and economical management.

3. Whether the landlord made a reasonably prudent investment in purchasing the property and arranging financing on said property. In considering this factor, the board may consider the purchase price and the fair market value of the property to determine if the debt servicing expenses are excessive. The board may also consider the amount of cash invested in the property in relation to said fair market value and purchase price, the interest rate of the mortgage, the term of the mortgage or mortgages and whether the mortgage instruments were arrived at and executed in an arms-length transaction.

4. Whether or not a hardship situation exists in accordance with the requirements set forth in this chapter.

d. In computing gross maximized annual income the following limitations shall apply in all cases:

1. No allowance shall be permitted for a vacancy, except as may be adequately demonstrated as the result of market conditions or rents uncollected due to eviction proceedings.

2. No loss caused by a nonresidential use may be considered.

e. In computing reasonable and necessary operating expenses the following limitations shall apply in all cases:

1. Operating expenses shall not include depreciation, amortization of debt service or capital expenditures.

2. Operating expenses shall exclude an amount for the annual payment of mortgage interest when the mortgage arises from the purchase or a refinancing of the property.

3. Taxes shall be limited to amounts actually paid, including those in escrow for appeal.

4. Repairs and maintenance shall be limited to amounts paid pursuant to arm’s length transactions and shall be reasonable and necessary so as not to cause over-maintenance of the premises. Cost of service contracts shall be prorated over the period covered. Painting costs shall be prorated over the number of years of actual painting cycle in the building, but in no event shall painting be prorated at a period of more than three years for the interior of dwelling units or five years for the exterior and common areas.

5. Legal and auditing expenses shall be limited to reasonable and necessary costs of the operation of the property. No legal expenses or audit expenses shall be allowed as a deduction that does not directly result from the landlord tenant relationship.

6. Management shall be limited to actual services performed, including the resident manager’s salary, telephone expenses, postage, office supplies, stationery, and the value of the apartment provided if included in income. In no event shall management fees exceed five percent of the first fifty thousand ($50,000.00) dollars of gross maximized income, four and one-half percent of the next twenty-five thousand ($25,000.00) dollars, four percent of the next one hundred thousand ($100,000.00) dollars, three and one-half percent of the next one hundred thousand ($100,000.00) dollars and three percent of any amount over two hundred fifty ($250,000.00) thousand dollars.

7. Salaries not included in management fees shall be limited to actual services performed, and amounts for similar positions in the area, including rental value, if included in income and expenses and wages and benefits paid.

8. Advertising shall be limited to actual costs that are reasonable to ensure occupancy only. Where waiting lists exist, advertising expenses shall not be allowed.

9. Utilities including, but not limited to gas, electric, water, oil, coal shall derive from arms length transactions. Any such costs must be offset against any surcharge income on same.

10. Insurance shall be prorated over policies and shall not include landlord’s life, medical or other personal policies.

11. No penalties, fines shall be allowed.

f. If at any time during the course of consideration of a hardship increase pursuant to the provisions, the rent leveling board shall determine that the landlord is not in substantial compliance with any or all of the above, the board may temporarily withhold further consideration of the application for a hardship increase until such time as the landlord has corrected such deficiency.

g. If after a full hearing the rent leveling board shall determine that the landlord is in full compliance with the provisions of this act, it may permit a rental increase sufficient to reestablish the 60 percent relation of fair net operating income and any increase granted under a fair net operating income formula shall be prorated to all of the units within the structure or on the property. Any relief given by the rent leveling board may be designated as temporary in nature. The rent leveling board shall state the commencement and duration of the relief granted and shall specify how the surcharge is payable.

h. Under no circumstances shall the rent leveling board approve an application for hardship increase unless the landlord furnishes an information certificate issued by the coordinator of inspections stating that the building in which the dwelling unit is located has been inspected and that the building is in substantial compliance with the building, sanitary, or housing code of the City of New Brunswick, pursuant to the pertinent sections of Chapter XIV of the Revised General Ordinances of the City of New Brunswick, 1970.

24-9.1 Notice of Surcharge Increase. Prior to any such increase, the landlord must post in the lobby in which the dwelling unit is located, or if no lobby is present, in a conspicuous place in or about the premises, a notice stating that such a hardship surcharge is sought. Additionally, the landlord must give notice of such application to each tenant with detailed reasons therefore, at least 30 days prior to the hearing date of the application, and make service as set forth in subsection 24-7.2.

All notices required to be given to parties under this subsection shall be in required form and properly serviced before the rent leveling board conducts any hearings as to merits of the request.

24-9.2 Commencement of Surcharge Increase. The landlord shall be required to submit an affidavit of compliance to the rent control office which certifies that he has fully complied with any matters concerning a vacancy decontrol rent increase, tax surcharge, utility surcharge, capital improvement surcharge, hardship surcharge, upon the issuance of said surcharges or disbursements of refunds to the tenants, or at any other time as required by the rent control board.

24-10 Utility Surcharge

1. Any increase cost to the landlord for utilities may be assessed upon the tenant, if the same are provided by landlord for the tenant, based upon square footage allocations. The utility surcharge shall be payable by each tenant in 12 equal payments, owing monthly, or in similar proportions for a periodic tenant, and shall be in addition to the usual rent owed.
   
2. The utility surcharge for any year shall not exceed the amount authorized by the following formula: The landlord shall divide expended increased costs by total square feet in the building containing the dwelling unit to obtain the utility increase per square foot. The tenant shall not be liable for a utility surcharge exceeding the utility increase per square foot multiplied by the number of square feet in the dwelling unit plus a proportionate share of the increase for the footage of the common areas by the utility in question. This formula is to be based on the immediate past year, calendar or fiscal, and base year or any part of resulting in the difference or expended increased costs. The base year for purposes of this section shall be 1978. Thereafter the base year shall be the first year during which the unit is subject to this chapter.
   
   
3. The landlord shall receive 100 percent of the utility surcharge unless the board finds that the tenant has met the required proofs as set forth in subsection 24-10.2 in which case the board may reduce the utility surcharge up to a maximum of 25 percent. The rent control board shall refer to the standards set forth in Schedule A in computing any deductions from the utility surcharge. In doing so, the board may make a reduction of three percent of the total utility surcharge for each standard that the board finds the tenant has proven inefficient in accordance with this section. Any reduction shall not be retroactive in nature.
   
   
4. In the event that the board finds that the tenant has proved that the landlord is inefficient in one or more standards, as provided in paragraph c. hereof, the landlord may within 30 days of receipt of a notice of such finding, elect to provide the standard or standards found by the board to be inefficient. Such election shall be made by filing with the board an application for a capital improvement surcharge for such standard or standards, in accordance with section 24-11. The landlord shall be entitled to a capital improvement surcharge for any costs incurred in providing the energy efficiency standards being specified under Schedule A, provided said improvements meet the requirements of section 24-11. Upon completion of any cited deficiencies resulting in a reduction of the utility surcharge, the landlord may appeal to the board for a reinstatement of the entire surcharge, which shall not be retroactive in nature.
   
   
5. The landlord shall provide reasonable access to the premises for a tenant expert to evaluate the energy efficiency of the rental dwelling pursuant to this section. Said expert to retained at no cost to the landlord.

24-10.1 Notice of Surcharge Increase. Shall be made in accordance with the service requirements as set forth in subsection 24-7.2.

24-10.2 Tenant Review.

a. The rent control board shall review each request for a utility surcharge, upon the written request of a tenant. The tenant challenging the validity and/or amount of the utility surcharge, as permitted in this section, shall have the burden of proof to demonstrate to the rent control board that the building is (i) in need of energy conservation measure, (ii) that the building can be made substantially energy efficient, and that it is economically feasible to do so, (iii) that the landlord has not taken any energy conservation measures in the areas complained of by the tenant in accordance with the standards set forth in Schedule A.

24-10.3 Commencement of Surcharge. The utility surcharge shall commence on the next anniversary date of each respective tenant.

24-11 Capital Improvement Surcharge.

The landlord may seek a surcharge from the rent leveling board for expenditures for capital improvements.

1. Capital improvement shall mean any improvement, addition or alteration, of housing space or equipment, that provides a new benefit to tenants, as well as any improvement mandated by law. Only that portion of the capital improvement cost that provides an increase of benefits to the tenant shall be considered a capital improvement. The expenditure must be subject to an allowance for depreciation under federal income tax provisions of more than one year or accelerated cost recovery system. Any improvement made pursuant to section 24-10d shall also be considered as a capital improvement.
   
   The capital improvement surcharge for any year shall not exceed the amount authorized by the board in accordance with the following formula:
   
   The total approved expenditure shall be divided by the total square feet in the building containing the dwelling unit to be assessed the surcharge, which is then multiplied by the number of square feet in the dwelling unit plus a proportionate share of the surcharge for the square footage of the common areas in that building.
   
   No capital improvement shall exceed 12 percent of the base rent in any one year. If the total cost of said capital improvement application does exceed 12 percent of the base rent, then the rent control board shall extend the life of the capital improvement surcharge to comply with said capital improvement.

24-11.1 Notice of Surcharge. The landlord must serve notice of the surcharge application upon all tenants at least 30 days prior to the hearing date of the application and service shall be in accordance with those standards set forth in subsection 24-7.2.

24-11.2 Application for Surcharge. The landlord’s application for a capital improvement surcharge shall be accompanied by the following information:

The purpose, justification, nature and description of the improvement or additional service; the total expenditure for each capital improvement excluding finance charges or costs associated with the procurement of financing for the project; the date of completion of each improvement; the total number of square feet in the building in which the dwelling unit is located; the number of square feet in the dwelling unit; the number of years of useful life; details of the depreciation used to compute income taxes; the tentative monthly capital improvement surcharge for each affected dwelling unit; and such other information as may clarify the surcharge and the calculation thereof.

24-11.3 Duration of Surcharge. The duration of the surcharge should be based on the depreciation assessment of the improvement in accordance with the allowance for depreciation under the federal income tax provisions. This subsection shall read concurrent with the percent capital improvement allowable set forth in section 24-11a.

The capital improvement surcharge each tenant is liable for shall thereafter be payable in 12 equal payments for each year of the allowance, owing monthly, or in similar proportions for a periodic tenant, and shall be in addition to the usual rental owed. Thereafter, the capital improvement surcharge or surcharges, if more than one is involved, shall be payable proportionately at the same time the usual rental is payable, and may be charged for any tenancy in addition to the usual rental. The capital improvement surcharge increase shall not be considered rent for the purpose of computing rental increase, as set forth in section 24-7 above.

24-11.4 Commencement of Surcharge. The capital improvement surcharge shall commence on the next anniversary date of each respective tenant.

24-12 Insurance Surcharge.

1. A landlord may apply to the rent leveling board for an insurance surcharge whenever it is determined that the increase in the cost of comprehensive and general liability insurance for the apartment complex has exceeded 110 percent of the prior year’s cost of such insurance. The landlord may not apply for any relief under this section until he has owned said property for at least 12 months.
   
   The amount of the insurance surcharge ordered by the board shall not exceed an amount equal to the amount in excess of 110 percent of the prior year’s cost of such insurance for equivalent coverage.
   
   
2. The landlord shall make application to the rent leveling board and shall file all necessary certifications. The application shall include: (1) The cost of said insurance for the year for which the insurance surcharge is sought and the preceding year together with the name of the insurance company providing such insurance for each year; (2) A statement setting forth the date of purchase and any change in coverage under the policy for the year in which the insurance surcharge is sought; (3) A list of all present owners of the property; and (4) Such other materials as required by the board.
   
   
3. Any surcharge allowed under this section shall be allocated among tenants on the basis of the square footage of their respective dwelling units. Any insurance surcharge shall be payable by tenants in 12 equal payments, monthly, or in similar proportions for a periodic tenant, and shall be in addition to the usual rent owed. Any insurance surcharge shall expire at the end of one year unless the landlord files with the rent leveling board, at least 30 days prior to the expiration of the insurance surcharge term, an affidavit signed by the landlord stating that the cost of comprehensive and general liability insurance for the apartment complex or unit continues to exceed 110 percent of the cost of such insurance for the year prior to the year for which the insurance surcharge was first sought and for each year thereafter for which a surcharge is allowed as provided for hereafter. The affidavit shall have affixed to it documentation of same. A copy of the affidavit and documentation affixed thereto shall be provided to the tenant(s) in a manner provided by subsection 24-7.2.
   
   

   Upon application of the landlord as provided for in this section, the amount of the insurance surcharge may be increased in any year in which the landlord has incurred a subsequent increase in the cost of comprehensive and general liability insurance for the apartment complex or unit in excess of 110 percent of the prior year’s cost of such insurance. The amount of the increase in the insurance surcharge shall not exceed an amount equal to the amount in excess of the 110 percent of the prior year’s cost of such insurance for the equivalent coverage.
   
   Any insurance surcharge shall not be considered rent for the purpose of computing rent increases as set forth in section 24-7.
   
   
4. The landlord must serve notice of any surcharge application upon all tenants at least 30 days prior the hearing date of the application and service shall be made in accordance with those standards set forth in subsection 24-7.2.
   
   Schedule “A” referred to in section 24-10.0. Utility Surcharge which contains the standards to be referred to by the rent control board in computing any deductions from the utility shall be published in accordance with law as part of this chapter.

24-13 Transcript of Proceedings.

The rent control board shall record all proceedings and maintain said recording for a period of 12 months thereafter. Any person or party requesting a transcript shall pay all actual costs in the preparation and copying of the number of copies so requested in accordance with appropriate city ordinance.

24-14 Violations – Complaints.

A willful violation of this chapter or any provisions thereof, including but not limited to the willful misstatement of fact made to the rent leveling board, shall be considered a disorderly persons violation and shall, upon conviction, be subject to penalties as provided in section 6-14 of the City of New Brunswick code. Each violation which affects more than one dwelling unit or which occurs on more than one occasion shall be considered as separate violations of law.

Any person claiming to be aggrieved by a violation of this chapter including any member of the rent leveling board of any counsel, make, sign and file a written complaint with the clerk of the municipal court of the city. Thereafter, such matters shall be set down for a hearing and adjudicated according to the rules of court.

Schedule A
ENERGY EFFICIENCY STANDARDS

a. Roof Insulation/Attic Spaces. In all attics of all residential buildings, the owner or operator shall provide no less than six inches in depth of fire retarded Batt Insulation with vapor barrier. Insulation shall be set between all floor or roof joists and have a minimum “U” value of 0.082 or a minimum “R” factor of 19b. Other forms of insulation may be used, but they must comply with the “U” value or the “R” factor required herein. All knee walls in finished attics shall be insulated.

b. Caulking and Sealants. All exterior joints around windows and door frames, between wall cavities and window or door frames, between wall and foundations, between walls and roof, between wall panels, at penetrations or utility services through walls, floors and roofs, and all other openings in the exterior envelope shall be sealed in an approved manner.

c. Storm Windows and Doors. All exterior windows shall be provided with operable single glazed storm windows which shall be secured properly. All exterior doors shall be secured properly.

d. Interior Insulation. The floor or walls of a heated space located over or adjacent to an unheated space shall be insulated with no less than three and one half inches in depth of fire retarded Batt Insulation with a vapor barrier. Insulation shall be set between all floor joists or wall studs and have a minimum “U” value of 0.082 or a minimum “R” factor of 19b. Other forms of insulation may be used, but they must comply with the “U” value or the “R” factor required herein.

e. Thermostats. All heating systems shall be provided with at least one thermostat for the regulation of temperature.

f. Heating and Piping. All hot water or steam piping routed exposed, shall be thermally insulated with one half inch thick jacketed pipe insulation.

g. Heating Plant Efficiency. All heat producing devices such as boilers or furnaces shall be capable of producing no less than 80 percent of the BTU rating or a combustion efficiency of less than 80 percent of which the device was intended to produce. In addition, all boilers or furnaces shall be externally insulated as per manufacturer’s recommendations.

h. Hot Water Storage Tanks. All galvanized domestic hot water storage tanks shall be insulated so that heat loss is limited to a maximum of 29 BTU/HR per square foot of external tank surface area.