Montclair Rent Control Advocates Share Some FAQs About New Law

MONTCLAIR, NJ — Montclair’s new rent control law officially took effect on Monday. But questions about the ordinance still remain for renters and landlords alike.

The Montclair Town Council gave a final thumbs-up to a revamped version of the municipal control ordinance in April, capping off a saga that's lasted nearly two years. The new law will replace the old one, which sparked a fierce legal battle between renters and landlords that ended with a compromise in March.

• Read More: Deal Reached On Montclair 'Rent Control 2.0'
• Read More: Rent Control Arrives In Montclair; Council Passes Revamped Law

The new ordinance took effect on May 9. It limits annual rent increases to 4 percent, and 2.5 percent for senior citizens, for rental units in buildings containing two or three units in which the owner does not reside, and all units in buildings containing four units or more, with the following exceptions:

• Single-family homes, single condominiums or single cooperative units
• Units in buildings in which the owner resides that contain 3 or fewer residential units
• Units for which the amount of rent is determined as a function of household income by a government program
• Motels, hotels, and similar type buildings intended for transient use, floor space used strictly for commercial purposes in any type building, including state-licenses rooming houses
• Dwelling units exempted by state or federal law, including units constructed after February of 2008

The law also limits rent increases on vacancies to 10 percent. The full ordinance can be seen online here: O-22-05.

‘MONTCLAIR WINS WITH RENT CONTROL’

The Tenants Organization of Montclair (TOOM), an advocacy group that pushed for the law on behalf of renters, thanked “all of the leaders who stepped up to organize in their buildings and on their blocks and other residents’ blocks all in the name of stability and predictability through having rent control.”

TOOM spokespeople told Patch that they’ve gotten many questions from Montclair residents who are confused about the new law.

According to the group, here are some of the most common questions – and their replies.

Question: My landlord sent me notice that my rent goes up 6 percent on June 1. Is that right?

Answer: Before you sign a new lease for increased rent, you need to know these things:

1.) Did your landlord register the property with the Montclair Township? All landlords must register their properties by July 10, or they may not impose rent increases.

2.) Did your landlord raise rent at any point since May 2020? If so, that violated the town’s pandemic-related moratorium on rent increases. If unlawful increases were charged, then your landlord must roll back the rent to what it was as of May 2020, and then may charge an increase of up to 4 percent. The landlord is not allowed the one-time-only increase of 6 percent under the ordinance.

3.) Are you or is any listed tenant on your lease age 65 or older.? The permitted increase for seniors is 2.5 percent, now and going forward.

Question: So, do I now have a new lease renewal date?

Answer: Yes. Your annual renewal date is the anniversary of the date of your new lease agreement.

Question: My rent is paid through a portal. Do I still have to sign a new lease?

Answer: Yes. Your landlord may send a copy of the new lease and terms via the portal. The landlord must also advise you in writing, by certified mail, that you must agree to the new lease or vacate. But you do not have to sign a lease that you think has unreasonable changes. If you think this has occurred, consult the town’s temporary Rent Control officer, Brian Scantlebury (an assistant town manager) and/or the Town Attorney, Paul Burr, Esq.

Question: Does my landlord have to raise my rent by 6 percent, 4 percent or 2.5 percent?

Answer: No, the new ordinance provides a cap on how much rent can be raised in a year – it is not required that a landlord or owner ever raise the rent.

Question: What about parking and pet fees?

Answer: Pet fees are not covered under the ordinance. Parking that is a part of your rental agreement falls under the same percentage increase limits as your rent. If parking is provided by a separate agent, then the ordinance does not apply.

Question: How do I follow up with a complaint about an illegal rent increase during the freeze, or a landlord’s failure to register with the town?

Answer: If your landlord illegally raised your rent during the freeze (May 2020 - May 2022), the tenant should notify the landlord of his/her violation of the freeze in writing, via certified and regular mail, and also state that the tenant will deduct the overcharges from future rent. (You can inquire about the Montclair Township Landlord Tenant Committee writing a letter on your behalf.) Once the Rent Control Board is up and running – probably within a month or two (as of May 10) – a tenant can file a complaint. These are also the steps to take regarding a landlord’s failure to register a property with Montclair Township.

AhavaFelicidad, TOOM president, said the law is the result of a community-wide campaign:

“I started the Tenants Organization of Montclair to fulfill one of my late mother’s dying wishes of me. Unbeknownst to many beside my expression of it - this was the main reason for my involvement in this movement. After over 30 years of it not coming to fruition our groups efforts brought rent control to Montclair for the first time in history of its establishment. It just goes to prove that it only takes one- one to stand up and attract others in who believe in the cause and are willing as Toni Martin our first VP would say, ‘Be a rare bird.’”

TOOM’s president continued:

“I’d like to acknowledge those who first approached me to offer help at the April 11, 2019 rent control forum: Dr. Manuel Brown, the Rev. Safiya Oni Brown (also founders), Mitch Kahn of NJTO, Jacob, the Rev. Leslie Houseworth Fields, Jean and Peter, Alain, James and Pluchet. Over the months of public meetings, we continued to grow, until that amazing September day in 2019 at what used to be Crazy Mocha. Brenda and Tanisha said they had had enough, and we prepared to attend in-person council meetings. We all rejoiced and carried forward. There are so many details, meetings and mile-markers to mention that it could be a chapter book. I’d like to thank Mr. William Scott for providing loads of background guidance and pieces to the puzzle. I’d like to thank the Clergy of Montclair TOOM members who remained engaged during our first info session and took action that spiraled us forward at what seemed like the speed of light. Of course, the mayor and Montclair Township Council held light to this and stayed in the groove, so we are thankful for them. I’d like to assure the community that the Tenants Organization of Montclair will continue on. We will still offer monthly meetings to join us, and [I] and other leaders will continue training those who want to take a more active role. We represent several generations and the diversity that is expected from Montclair, and will continue to do so. Montclair wins with rent control.”

RENT CONTROL IN MONTCLAIR: MORE INFO

Have more questions about Montclair’s new rent control law? Montclair Councilman Peter Yacobellis released a list of frequently asked questions in April, which can be seen below.

What structures are included in Montclair’s new proposed rent control law?

Rental units in buildings containing 2 or 3 units in which the owner does not reside and all units in buildings containing 4 units or more with certain exceptions as listed below.

What structures are not included in Montclair’s new proposed rent control law?

• Single-family homes, single condominiums or single cooperative units
• Units in buildings in which the owner resides that contain 3 or fewer residential units
• Units for which the amount of rent is determined as a function of household income by a government program
• Motels, hotels, and similar type buildings intended for transient use, floor space used strictly for commercial purposes in any type building, including state-licenses rooming houses
• Dwelling units exempted by state or federal law, including units constructed after February of 2008

What are the permitted increases in the new proposed rent control law?

• A one-time 6% increase is permitted for units covered by this law where the owner did not collect an increase on an existing tenants’ annual rent since May 1, 2020 and where no tenant living in the unit is 65 years or older so long as tenant is notified in accordance with state law.
• With the exception of the one-time annual increase to base rent, the maximum permissible annual rent increase on a dwelling unit is 4% of the base rent, where no tenant living in the unit is 65 years or older so long as tenant is notified in accordance with state law.
• In any dwelling unit where at least one tenant is 65 years of age or older, the new maximum permissible annual increase on dwelling units covered by this law is 2.5% of the base rent so long as the tenant is notified in accordance with state law.

Are month-to-month leases covered by the proposed law?

Yes, landlords may only raise rents once per year based on the above caps.

Are there exceptions for rent control on properties covered by the law?

Yes, the law provides landlords with the opportunity to pursue relief from the caps for several scenarios:

1. Vacancy Decontrol – From the effective date of the ordinance, the landlord is permitted to raise rents in excess of the above caps no more than one time every five years and only if there is a vacancy of the unit, meaning the tenant has not renewed their lease and has moved out.
2. Hardship Increases – Applicable when the annual operating expenses for any one building exceed at least 65% of the total annual gross income. Operating expenses shall include all reasonable expenses necessary to carry out the proper operation and maintenance of the property, including property taxes allocated to the year.
3. Major Capital Improvements – This is for an addition to the dwelling or housing space units that is for the benefit of the tenants, that was not previously provided or required to be provided by law or lease, that materially adds to the value of the dwelling or housing space and prolongs its life, and that must not be upkeep, maintenance, repairs, rehabilitation or replacement of items or services.
4. Major Additional Services – This is for an addition to the dwelling of housing space units that is to the benefit of the tenant, that was not previously provided or required to be provided by law or lease, that materially adds to the value of the dwelling or housing space and prolongs its life, that includes a substantial increase in services, furniture, furnishings or equipment provided to tenants since the date of the most recent rent increase under any section of this ordinance, and that must not be upkeep, maintenance, repairs, rehabilitation or replacement of items or services.

Is Parking Included?

• Yes, any parking rented in conjunction with the apartment rental is subject to the same increase caps.
• However, any parking provided to a tenant by a third party unrelated to the landlord and negotiated between the tenant and said third party separately from the apartment rental and outside the apartment rental location, is not covered.

How will the new rent control law be enforced?

• The law establishes a new position in Montclair’s Township Government: Rent Control Officer. This person’s responsibilities will include maintenance of all relevant records and other data and information; supplying information and assistance to landlords and tenants and to bring landlords and tenants together in formal conferences to suggest resolutions of conflicts; ensure compliance of the law by landlords and tenants; remedy violations of the law including bringing appropriate legal charges if necessary; accept, process, investigate and determine complaints with regard to vacancy decontrol; collect and maintain accurate Rent Registration Statements; prepare forms for various processes outlined in this law.
• The law also establishes a Rent Control Board consisting of seven members who will be appointed by the Township Council. The Board will issue and promulgate rules and regulations; supply information and assistance to landlords and tenants; hold hearings and adjudicate various matters; approve and accept settlements; require landlords to produce financial and other records in order to adjudicate matters and more.

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