 |  | |
 |
|  |
 |  | |
| | |
|
| |
| | |
|
|
This Web version COPYRIGHT 2002 GET NJ
No capital improvement rental increase may be passed
on to the tenant without a landlord first making an
application and having a final approval by the Rent
Leveling Board. With the exception of emergencies, the
landlord, before proceeding with a major capital
improvement is to submit a pre-application to the Office
of Tenant/Landlord Relations for the proposed capital
improvement which includes cost estimates, together with
establishing the allocation for each dwelling unit. Each
tenant is to be notified of the pre-application and should be
advised of the substance of the proposal, together with
their right to request a hearing before the Rent Leveling
Board.
The board will determine the conditions of a pre-
approval with respect to the improvements, its cost and
allocation. Upon completion of the capital improvement,
bills, canceled checks and copies of proper permits must
be submitted to supplement the pre-application.
After a final hearing before the Hearing Officer, the
Rent Leveling Board will review the report and
recommendation together with letters of exception before
rendering its decision. All major capital improvements
may be depreciated over ten (10) years.
A landlord may file for minor capital improvement
rental increases. There is no need for a pre-application.
Minor capital improvements may be depreciated over five
(5) years. The rental increase once approved is considered
a surcharge that must terminate after payment of five
years.
A capital improvement cost that exceeds the amount of
50% of the assessed value of the building cannot be
approved unless the building is in substantial compliance
with all relevant property, maintenance and building
codes.
Capital Improvement
Increases for Vacant Units
For capital improvements of up to $5,000 in value, the
vacant unit's monthly base rent can be increased by $1.35
per $100 of improvements. Improvements in excess of
$5,000 may be increased by $1.55 per $100. Landlords
who undertake such capital improvements must register
the new rent ($75 per unit filing fee) with the Division of
Tenant/Landlord Relations. Their rental registration for
the improved units must include the supporting
documentation of the costs incurred.
A capital improvement is a permanent improvement
that can be claimed by the landlord for depreciation on
federal tax returns and adds to the value of the building.
Excluded from this definition are:
In the event of a vacancy, the rent may be increased
above the cost of living level only if capital improvements
were made to the vacant housing space and only to the
extent of the actual cost of those capital improvements.
Appropriate permits must be obtained for all work and
must be in conformance with applicable city codes.
| Return to the Rent Control Main Menu |
 Your Ancestors' Story |
 Bruce Springsteen's Jersey Shore Rock Haven! |
|
UrbanTimes.com |