Rent Freeze Introduced By Morristown Council To Rent Controlled Buildings

MORRISTOWN, NJ — The Morristown Council recently introduced a new measure that would temporarily freeze rent increases on rent-controlled units for the calendar year 2023.

According to the new ordinance, a clerical error by the town rent leveling department resulted in an "incorrectly authorized" rent increase in town rent-controlled units.

According to the town website, rent control in Morristown applies only to apartments built before 1981, as well as "all non-exempt apartment buildings, multi-family homes, and single family homes and condominium units rented out in an owner's absence."

The error was not explained by the council, but Town Administrator Jillian Barrick did say that all rent-controlled units in town were affected by the mistake.

"I reviewed it this afternoon because I had some concerns about it, but I don't have those concerns any longer. One, there was a mistake in reference to the calculation, but the calculation even in prior years amounted to only two other years when the calculations may have been incorrect, and when you look at the dollar amounts, I think the correction that is being proposed here, with the freeze for one year, is a very fair correction of the problem," Councilman Robert Iannaccone said.

The Rent Control Ordinance in Morristown establishes a formula for rent increases based on the Consumer Price Index (CPI). The Rent Leveling Department determines the allowable increase each year. Rent Leveling and affected tenants must be given 60 days' notice before changing rents.

Morristown's Rent Control Ordinance has included a Decontrol/Re-control provision since 2005. If a tenant voluntarily vacates, the landlord has the option of negotiating the next rent at the "market rate," which is whatever the next tenant is willing to pay.

"I think this is a good move. I don't want the people in rent-controlled apartments in our town to look at this and see 'incorrect'. I don't want them to worry. I think you guys did a good job reviewing the problem and handling the problem and the solution you came up with, I think, is very good," Iannaccone said.

The issue will be revisited for a second vote at the next council meeting scheduled for Sept. 13.