Asbury Park Introduces Rent Stabilization Ordinance

ASBURY PARK – The City Council has introduced a municipal ordinance to provide for rent stabilization for certain rental housing in Asbury Park.

The second reading and public hearing for the ordinance is scheduled for the City Council meeting on March 10th.

Any questions regarding the ordinance should be directed to the director of planning and redevelopment, Michele Alonso (michele.alonso@cityofasburypark.com).

Here are details regarding the plan:

Background

• Council authorized rent stabilization analysis in July 2020
• Prepared by Rent Control Subcommittee

Intention

• Stabilize increasing rents
• Balance between competing needs
• Consistency with area rent leveling ordinances when appropriate
• Future amendments permitted
• Unlike any initiative petition ordinance (3-year freeze on changes)

Applicability

• Rental dwellings in a building containing 5 or more units

Exemptions

• Rental dwellings in a building containing 4 or fewer units
• Rental dwellings that are newly constructed for a period of 30 years (as per State
• law)
• Special housing types such as affordable housing units, group homes, boarding
• homes, and shelters
• Units with a short-term rental permit

Annual Rent Increase

• 1 permitted every 12 months
• Maximum increase of 3.5 percent or CPI, whichever is greater
• CPI 30 year maximum – 4.5 percent

Other Rent Increases

• Hardship Increase
• Landlord can appeal to Rent Leveling Board and address tax increases, repairs.

Capital Improvements Increase

• Landlord appeal to Rent Leveling Board and address physical and/or service changes that benefit tenant
• Maximum 15 percent increase
• Maximum total annual increase of 20 percent

Vacancy Decontrol

• Permitted
• Allows any rent increase with new tenant
• Rent increase not subject to Rent Leveling Ordinance

Tenant Protection

• 50 percent of tax reduction from tax appeal must be supplied to tenant
• “Substantial Compliance” required with any increase
• Dwelling must be free of health, safety, and fire violations (confirmed by city)
• Landlord is in compliance with Rent Leveling Ordinance

Tenant notice requirements

• 60 days prior to proposed rent increase
• “Standard of service” must be maintained
• Must maintain the unit’s service, maintenance, furnishings and equipment
• There is an opportunity to file complaint with Rent Leveling Board

Rent Leveling Board & Officer

• 7 members
• 2 landlords
• 2 tenants
• Appointed by Council
• Staggered 3-year terms
• Rent Regulation Officer
• City staff member
• Supports Board activities and members

Powers of Rent Leveling Board

• Issue rules and regulations
• Supplies information to tenants and landlords
• Assists with compliance
• Decides appeals and hear complaints
• Assesses penalties for violations