ORDINANCE NO. 2024-____
ORDINANCE OF THE TOWN OF PHILLIPSBURG, COUNTY OF WARREN, STATE
OF NEW JERSEY, ESTABLISHING CHAPTER 463 OF THE TOWNSHIP CODE
ENTITLED “RENT STABILIZATION”
WHEREAS, the Town Council of the Town of Phillipsburg finds and determines that the Town
of Phillipsburg is in need of a body to mediate over affairs between tenants and landlords in regard
to rent prices and habitability concerns; and
WHEREAS, the Town Council of the Town of Phillipsburg finds and determines that the Town
of Phillipsburg is undergoing a severe housing shortage and such a crisis leads to an increase in
homelessness.
WHEREAS, the Town Council of the Town of Phillipsburg finds and determines that it is in the
Town’s interests to regulate, control and stabilize rents in the Town in order to protect the health,
safety and general welfare of the residents of the Town of Phillipsburg.
WHEREAS, N.J.S.A. 40:48-2 and the New Jersey Supreme Court Decisions in Inganamort v.
Borough of Fort Lee, 62 N.J. 521 (1973) and Helmsley v. Borough of Fort Lee, 78 N.J. 200 (1978)
empowers the Town of Phillipsburg to regulate, control and stabilize rents within the Town of
Phillipsburg.
NOW, THEREFORE, BE IT ORDAINED by the Town Council of the Town of Phillipsburg,
Warren County, State of New Jersey as follows:
Section 1
The Municipal Code of the Town of Phillipsburg is hereby amended to include Chapter
463, the title section of which shall read as follows:
Rent Stabilization
Section 2
Chapter 463, Rent Stabilization, of the Municipal Code of the Town of Phillipsburg is
hereby adopted to read as follows:
§463-1 Definitions.
Available For Rent to Tenant
Fit for habitation as defined by the statutes, codes and ordinances in full force and effect in the
State of New Jersey, County of Warren and Town of Phillipsburg and occupied or unoccupied and
offered for rent.
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Dwelling
Any building or structure rented or offered for rent to one (1) or more tenants or family units,
including rooming houses and resident hotels. Excluded from this definition (and from the
operation of this chapter) are motels, hotels and housing units of three (3) units or less in which
the owner of the premises resides. Buildings which convert to condominiums or cooperatives and
which were previously subject to the terms and conditions of this chapter shall continue to be
subject to the terms and conditions of this chapter for tenants residing in such property following
the conversion, regardless of the number of units owned by an individual owner in the building.
Housing Space
That portion of a dwelling rented or offered for rent for living and dwelling purposes to an
individual or family unit, together with all privileges, services, furnishings, furniture, equipment,
facilities and improvements connected with the use or occupancy of such portion of the property.
Where a landlord requests a tenant to move from one (1) rent-controlled unit in the same complex
or structure to another unit (regardless of size or number of rooms) and the tenant agrees, the tenant
shall pay the controlled rental established for such unit.
Operating Expenses
Includes those expenses paid by the landlord in connection with the providing of residential
housing space. These expenses shall include, but shall not be limited to, property taxes, insurance,
management fees, payroll and personnel, supplies and materials, utilities, heat, grounds care,
repairs and maintenance. Debt service is specifically excluded from the aforesaid definition and is
not to be included as an "operating expense."
§463-2 Lawful Base Rent.
A. For the purpose of this chapter, the lawful base rent for housing space shall be
the rent agreed upon by landlord and tenant for the initial rental period.
B. The unit shall be decontrolled upon vacation by the tenant, provided that the
following procedure is strictly adhered to:
1. A landlord shall notify the Rent Leveling Board, in writing, upon
the decontrol of any rental unit within thirty (30) days of said rental
unit becoming decontrolled. Said notice shall include the rent paid
by the vacating tenant as well as the rent to be charged to the new
tenant.
2. The landlord shall also advise the Rent Leveling Board as to the
reason why the prior tenant vacated, including but not limited to, for
example, eviction by court action, voluntary vacation at the end of
the term of a lease or any other reason for vacation.
3. If the Rent Leveling Board determines that the landlord has harassed
the former tenant into leaving, the Rent Leveling Board shall have
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the power to return the unit to rent control and to order the rent
decreased to the maximum allowable amount under rent control.
4. Failure of the landlord to file the aforementioned notice with the
Rent Leveling Board shall nullify any rent increase which the
landlord obtained as a result of a decontrolled rent, and the landlord
shall be required to maintain the unit under rent control rates.
§463-3 Establishment of Rents.
Establishment of rents between landlords and tenants to whom this chapter is applicable shall
hereafter be determined by the provisions of this chapter. At the expiration of a lease or at the
termination of the lease of a periodic tenant, no landlord shall request or receive an increase in rent
which is greater than three percent (3%) in the case of tenants whose rent includes a charge for
water and sewer service and not greater than two and one-half percent (2.5%) in the case of tenants
whose rental charge does not cover water and sewer service. For a periodic tenant whose lease
term shall be less than one (1) year, such tenant shall not suffer or be caused to pay any rent increase
until such time as the periodic lease exceeds twelve (12) months, and such increase shall not exceed
three percent (3%), in the case of tenants whose rent includes a charge for water service, and not
greater than two and one-half percent (2.5%), in the case of tenants whose rental charge does not
cover water service, of the rent paid by the tenant in the twelfth month of the periodic lease.
§463-4 Rent Increases Restricted
Any rental increase at a time other than at the expiration of a lease or termination of a periodic
lease is prohibited and void. Any rental increase in excess of that authorized by the provisions of
this chapter is prohibited and void.
§463-5 Creation, Membership, Compensation and Voting of Rent Stabilization Board.
A. Established. The Rent Stabilization Board, consisting of five members as
hereinafter established, is hereby continued in existence and maintained as the
Rent Stabilization Board of the Town of Phillipsburg.
B. Composition; terms.
1. The Board shall consist of five members who shall be appointed by
the Town Council by resolution adopted by a majority vote of the
Council. For reasons of continuity and in the best interests of the
public the terms of the first members appointed pursuant to this
subsection shall be staggered terms of one- , two- , three- , four- ,
and five-year term appointments.
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2. Thereafter the term of office of the members of the Board shall be
for five years each. Each member shall serve without compensation,
but each shall receive such expenses and per diem allowances as the
Town Council, from time to time, may deem appropriate.
C. Alternate members. In addition to the five members of the Rent Stabilization
Board, the Town Council, as it deems necessary, may appoint two alternate
members to the Rent Stabilization Board, by resolution adopted by a majority
vote of the Council. The term of an alternate member shall be for one year. If
any vacancy should occur among the regular members, then the Town Council
may appoint either of the alternate members to fill the unexpired term. An
alternate member shall be entitled to sit with, and participate as a member, in
any meeting of or hearing before the Board. An alternate member who has
attended the full hearing or hearings on a specific matter may participate in, and
may vote upon, any determination made during the absence or disqualification
of any regular member.
D. Disqualification of member. No member or alternate member of the Rent
Stabilization Board shall be permitted to act on any matter in which that
individual has, either directly or indirectly, any personal or financial interest.
E. Quorums. A quorum for hearing shall consist of three members or alternate
members, and a majority shall be authorized to issue orders relating to the
powers and functions of the Board.
§463-6 Powers and Duties of Rent Stabilization Board.
The Rent Leveling Board shall implement the purposes of this chapter in the following manner:
A. The Board shall have the power to issue subpoenas for the attendance of
witnesses and the production of records and may administer oaths and take
testimony, and the provisions of the County and Municipal Investigations Law,
N.J.S.A. 2A:67A-1 et seq., shall apply.
B. The Board shall promulgate and issue rules and regulations to give effect to the
purposes of this chapter and may revise, repeal and amend the same from time
to time. Sufficient copies of the current rules and regulations shall be on file
with the City Clerk and Coordinator for the Perth Amboy Rent Control Board.
C. The Board shall supply information and assistance to landlords and tenants and
aid them in compliance with this chapter.
D. The Board shall enforce any federal legislation or regulations affecting rent
stabilization unless such action is prohibited by federal law.
E. The Board shall render a determination within forty-five (45) days after the date
of the filing of any application or petition.
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F. The Board shall hear complaints from tenants as to unlawful rental increases
and shall have the power to require reimbursements to tenants by landlords.
G. The Board shall have the power to compel enforcement of any of the sections
of this chapter.
§463-7 Notice to Tenants of Allowable Increase.
Any landlord seeking an increase in rent shall first notify the tenant by certified or registered mail,
return receipt requested, of the calculations involved in computing the increase, the allowable
percentage increase and the allowable rental increase. Any increase requested or received by
landlord without notice as set forth above shall be null and void.
§463-8 Rental Increase Due to Hardship.
A. In cases of financial hardship where a landlord's reasonable operating expenses
exceed sixty percent (60%) of his rental income, the landlord may apply to the
Rent Leveling Board for a rental increase due to this financial hardship. The
Board shall grant hardship increases to landlords to increase their rental income
so that the reasonable rental expenses do not exceed sixty percent (60%) of the
rental income. In considering the landlord's application, the Rent Leveling
Board shall make specific findings as to the reasonableness of landlord's rental
expenses as set forth in landlord's application for hardship rental increase. Prior
to any such application to the Board, the landlord shall serve notice on the
tenants by personal service or by certified mail, return receipt requested, no later
than thirty (30) days prior to the proposed date of application hearing. Said
notice shall include:
1. Time and date of application.
2. Place where application will be heard.
3. Amount of rental increase requested.
4. Where the copy of landlord's application may be reviewed by
tenants or their representatives during normal business hours.
B. Landlords may also seek rental increases where major capital improvements
have been provided or where additional services not previously accorded have
been instituted. As a prerequisite for such an increase, notices outlined in
Subsection A above must be given, which notices must contain the total cost of
the completed capital improvement or service, actual useful life, projection of
useful life of the project in years 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 the dwelling complex, the total
square feet demised to the tenant and the capital improvement increase that the
landlord is seeking from each tenant. On receipt of such an appeal, the Rent
Leveling Board shall determine if the improvement is major in character and, if
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so, may permit an increase up to but not to exceed an amount sufficient to allow
a landlord to recapture the cost of the capital improvement to be reimbursed
equally over the life of the capital improvements as defined by the Internal
Revenue Code section on straight line depreciation.
§463-9 Maintenance of Standards.
During the valid life of this chapter, landlords shall maintain the same standards of service and
maintenance of all real and personal property and equipment in and around the housing spaces and
dwellings in the same manner as was provided on the date of adoption of this chapter.
§ 463-10
Notice of Rent Increase.
Any landlord seeking an increase in rent shall first notify that tenant by ordinary mail, with proof
of mailing to be evidenced and corroborated by an affidavit of mailing, of the calculations involved
in computing the 3% against the previous year’s base rent. The notice shall be sent not later than
60 days prior to the date that the increased rent sought is to be effective, and the notice shall detail
the prior rent, the amount of the increase, expressed in whole dollars (that figure shall be rounded
with .49 dollars and below rounded down to the nearest whole dollar figure and .50 dollars and
above rounded up to the nearest whole dollar figure) and the new base rent sought. Rental increases
are expressly limited to a single increase per year per unit, regardless of whether the unit is
occupied or vacant.
§ 463-11
A.
Registration Statement; Changes to be Reported; Failure to Comply.
Within 30 days of the effective date of this chapter, every landlord of a dwelling
unit subject to this chapter shall file with the Rent Leveling Board a registration statement on a
form to be prepared by such Board, showing:
1.
of the owner.
2.
include:
The name, address and telephone number of:
a.
b.
c.
The owner, agent and any other person authorized to collect rents on behalf
The superintendent.
The person to be contacted in case of emergency.
The rent roll for each apartment building covered by this Chapter, which shall
a.
The apartment number.
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b.
The base rent.
c.
d.
e.
3.
All utilities and services that are included in the base rent.
Surcharges or other charges.
The date the last increase became effective.
Rental information which must be verified by documentation.
B. This registration statement is a public record and shall be available for inspection
at the office of the Town Clerk during normal business hours.
C.
All changes, including rent increases and the dates thereof, shall be reported to the
Rent Leveling Board by the landlord within 30 days of the change.
D.
For failure to properly register or failure to properly register all changes as provided
herein, no landlord shall be permitted to charge or collect any rental increase, surcharge or any
other charge until such time as all such registration requirements are met.
E.
Notices for rent increases, surcharges or any other charges served before
compliance with these registration requirements shall be of no force and effect.
F.
A complete rent roll for the immediate preceding year will be submitted to the Rent
Leveling Board by January 10 of each following year. Said rent rolls will include the rental status
of all units and as to all occupied units the amount being charged for that unit. The failure to timely
submit such rent roll will be considered a violation of this chapter and punishable in accordance
with its provisions.
§ 463-8
A.
Restriction of service fees; Application for fee increases.
From the effective date of this chapter, no landlord may demand or receive any fees
for any new services or for any services previously provided without fees.
B.
From the effective date of this chapter, any existing fees presently charged by the
landlord may not be increased for any reason under this chapter. Any landlord objecting thereto
and seeking to increase an already existing fee may make application for the same to the Rent
Leveling Board setting forth the present fee, the service provided, the amount of the increase
sought and the reasons for seeking an increase, including documentation of any costs claimed to
be the basis for seeking the increased fee. In no event shall the fee be increased in an amount
greater than the automatic yearly increase.
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§463-12 Reprisal Against Tenant.
No landlord of housing space or dwellings to which this chapter is applicable shall serve a notice
to quit upon any tenant or institute any action against a tenant to recover possession of housing
space, whether by summary dispossess proceedings, civil action for the possession of land or
otherwise, as a reprisal for the tenant's efforts to secure or enforce any rights under his leasehold
arrangement or under this chapter. Such unlawful reprisal on the part of the landlord shall be
punishable by the penalties hereinafter set forth.
§463-13 Severability
The provisions of this chapter are declared to be severable, and if any section, subsection, sentence,
clause or phrase thereof shall, for any reason, be held to be invalid or unconstitutional, such
decision shall not affect the validity of the remaining sections, subsections, chapters, sentences,
clauses and phrases of this chapter but they shall remain in effect; it being the legislative intent
that this chapter shall stand notwithstanding the invalidity of any part.
§463-14 Violations and Penalties
Any person, firm or corporation who shall violate any of the provisions of this chapter, including
but not limited to material misstatements contained in any of the notices required herein, shall,
upon conviction, be punished by a fine not to exceed five hundred dollars ($500) or by
imprisonment in the county jail or in any place provided by the municipality for the detention of
prisoners, or both such fine and imprisonment, and each violation of any of the provisions of this
chapter and each day there is a violation shall be deemed and taken to be a separate and distinct
offense and violations affecting more than one (1) leasehold shall be considered separate
violations.
§463-15 Interpretation
This chapter being necessary for the welfare of the Town and its inhabitants, it shall be liberally
construed to effectuate the general intended purposes.
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