hfha rent control tutorial

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Presents: KNOW YOUR RIGHTS Everything You Wanted to Know about Rent Protections, but Didn’t Know Who to Ask

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Page 1: HFHA Rent Control Tutorial

Presents:KNOW YOUR RIGHTS

Everything You Wanted to Know about Rent Protections, but Didn’t Know Who to Ask

Page 2: HFHA Rent Control Tutorial

What is covered under Hoboken’s Rent Control Ordinance vs. State Law?

RENT CONTROLYearly Increases Legal Base RentOverchargesSurcharges:

Tax/Water/Capital Improvement

Vacancy Decontrol

STATE LAWDisplacementCondo

conversion/protected tenant status

Lease disputes (outside of sections addressed in Hoboken’s rent control laws)

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Page 3: HFHA Rent Control Tutorial

What properties are covered under Hoboken’s Rent Control laws?Any residential property built before 1987 (including

single-family houses and condos.)Any residential property with less than 4 rental units

regardless of when it was built.Any pre-1987 condo dwelling.Any post-1987 building that didn’t file a rent control

exemption.*

* There is some question as to whether buildings built as rental properties that didn’t file an exemption are covered)

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Page 4: HFHA Rent Control Tutorial

What properties are not covered under Hoboken’s Rent Control laws?Commercial/Retail establishments.Post-1987 buildings with more than 3 units

that filed an exemption.Housing authorities, HUD developments.Properties under a government sponsored

affordable housing program.Factory/Industrial properties (even if

converted to rentals).

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Page 5: HFHA Rent Control Tutorial

What protections do tenants have under Hoboken’s Rent Control laws?

PAY ATTENTIONTHIS IS VERY IMPORTANT

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Page 6: HFHA Rent Control Tutorial

Unless You Stand Up For YourselfYou Have No Protections

Hoboken Administers its Ordinance Reactively

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Page 7: HFHA Rent Control Tutorial

But seriously….

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Page 8: HFHA Rent Control Tutorial

Q: What rights do you have if you stand up for yourself?

A: To pay only the legally allowed rentYou have a right to be charged no more than the legal rent

allowed on your apartment.You have a right to get a legal rent calculation that

determines what that is.If you discover you have been overcharged, you have a right

to have the rent lowered.You have a right to a refund of up to 2 years over payments.*You have the right to appeal a legal rent calculation and to

defend a legal rent calculation if it is appealed by the landlord.

*The maximum number of years for which you can receive a refund of overpayments is 2 years. If you received and signed a disclosure form (see sample) when you moved in, you can only file in the first 2 years that you live in the unit. If you did not receive a disclosure form you can file for the most recent 2 years you’ve lived in the apartment. If you vacate your apartment, you can file for a rent refund for two years up until two years after you have vacated the unit.

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Page 9: HFHA Rent Control Tutorial

What is a legal rent calculation & how do you get one?A legal rent calculation (LRC) is a

determination made by the city’s rent leveling officer when a tenant files for the calculation.

When a landlord files for this determination it is called a legal rent update.

The cost to file: $20.Any determination can be appealed to the

rent leveling board by either party.Note: Your landlord is always notified when

you file an LRC.9

Page 10: HFHA Rent Control Tutorial

Filing an OPRA

It’s less complicated than you might think

Page 11: HFHA Rent Control Tutorial

Or, Google “Hoboken OPRA”11

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Digital copies are free of charge!12

Page 13: HFHA Rent Control Tutorial

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Page 14: HFHA Rent Control Tutorial

Then there’s that thing that sends shudders down a landlord’s spine…

TrebleDamages

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Page 15: HFHA Rent Control Tutorial

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Page 16: HFHA Rent Control Tutorial

There are two types of surcharges

What is a Surcharge?

Page 17: HFHA Rent Control Tutorial

Tax/Water SurchargeWhat is a Tax/Water Surcharge?

The difference between the taxes in 1988 & today with a couple of exceptions:o 1) If you live in a condo conversion – it is the

difference between the first tax year after the conversion & today.

o 2) If the unit was given a hardship increase and taxes were included in the calculation – it is the difference between the year of the hardship increase and today.

o 3) If your unit was subject to a 1-time full vacancy decontrol for an O/O condo – it is the difference between the year the vacancy decontrol was granted and today.

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Page 18: HFHA Rent Control Tutorial

Things to know about the tax/water surchargeIt is good for 12 months and then must

come off.It can, however, be re-filed for each year.It is not part of your base rent for the

purposes of any yearly increase.Your landlord must notify you of the

surcharge.Your landlord can file for a tax surcharge at

any time; it doesn’t have to be at the time you take up residency or at the time you get your yearly increase.

It’s automatic if your landlord applies for it.18

Page 19: HFHA Rent Control Tutorial

Capital Improvement SurchargeWhat is a Capital Improvement Surcharge?

If your landlord makes a capital improvement to your apartment and/or the building, the landlord can file to recoup the cost from the tenants over time.

Capital Improvements are heard at the rent leveling board.

You must be notified that the landlord has filed and you should attend the hearing.

The amount of the surcharge and the length of time is determined by the rent leveling board.

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Page 20: HFHA Rent Control Tutorial

Things to know about the capital improvement surchargeIt is not part of the base rent for the

purposes of your yearly rent increases.The maximum amount that it can be is

33.33% of your monthly rent.The surcharge must come off after the term

of the surcharge is completed.

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Page 21: HFHA Rent Control Tutorial

Hardship increases are not surcharges

What is a hardship increase?

Page 22: HFHA Rent Control Tutorial

Hardship IncreaseIf your landlord is not getting a “reasonable return” on his/her investment s/he can apply for a permanent increase in the base rent on your unit. The hardship is determined by the amount of equity in the unit/building and the interest on the mortgage on the building/unit plus annual expenses minus the rent paid. If the rent does not cover the landlord’s expenses your rent will be increased by the amount that isn’t covered plus a reasonable return.

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Page 23: HFHA Rent Control Tutorial

Things to know about a hardship increaseIt is permanent and it is part of your base

rent.There is no limit on how much a hardship

increase can be.Pretty Scary, Right?

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Page 24: HFHA Rent Control Tutorial

What is The role of the Rent Board & who are the Rent Board Members?

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Page 25: HFHA Rent Control Tutorial

Who to contact about what & whyA problem in your apartment or building relating

to your safety: The Housing Inspector – 201.420.2041

A question about rent control: The Rent Leveling Officer (Suzanne Hetman) – 201.420.2062

Eviction/Displacement: An attorney (Hoboken Fair Housing Association members can get referrals)

For support/advice/non-legal advocacy: Hoboken Fair Housing Association: 201.589.1892 (free to members)

Hoboken also has a tenant attorney on contract for non-rent control related advise

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Page 26: HFHA Rent Control Tutorial

Tips for renters – some odds & ends If your lease has a clause that says you can be evicted if

your unit is becoming a condo – cross it out – this provision is illegal for pre-conversion tenants.

Check to see if your lease says that the landlord can apply surcharges at any time.

If your building is selling & if there are 4 units or more and your landlord tells you that you have to leave, you don’t.

If your building sells and the new owner gives you a lease that says, “no pets” when you already have one – tell the owner that they don’t have a legal right to tell you to get rid of your pet.

If you get a notice that the there will be a hearing by the rent leveling board about anything relating to your unit….ATTEND.

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Page 27: HFHA Rent Control Tutorial

Most Important Tip:

Join & Support The Hoboken Fair Housing Association

[email protected]

201.589.189227