The proposed rent increase: part 1
filing for a Capital Improvement surcharge


By now, all tenants ought to have received a letter from Legow Management Company
Pursuant to last night's meeting, we are in the process of working out a settlement
with the tenant representatives of Chilton Towers.
Accordingly, the scheduled hearing for October 21st has been adjourned.
If we cannot reach an agreement with our residents, we will schedule a new hearing.
We hope to have an update for you sometime in early November.


On Wednesday Oct 14, 2015 at 6:30 PM
the landlord held a meeting in the community room
to discuss the proposed rent increase.

This web page is to inform everyone of their legal rights as tenants of Elizabeth NJ.

Quite simply, the rent increase is NOT ALLOWED by Elizabeth ordinances!
  1. Ordinance 5.70.010 states
    Capital Improvement shall not include any repair or replacement of an already existing facility
    or those items or services required by law …
    The conversion of one heating system for another … shall not be deemed a capital Improvement
  2. Ordinance 5.70.120 states
    The work MUST BE COMPLETED to claim it as a Capital Improvement.
    Only 30% has been completed.


On Sep 17, 2015, the landlord filed an application with the Elizabeth Fair Rental Housing Board requesting a rent increase, claiming that the ongoing radiator replacement constitutes a “Capital Improvement”.

This is the largest rent increase request we've ever seen:
$1,262,935.21 is only 30% of the total job!
Replacing all the radiators will take 10 to 12 more years!
apartment rooms increase
per month		 increase
per year
D K 3 $32.52 $390.24
A C H J 3 ½ $37.93 $455.16
B F I M P 4 $43.35 $520.20
G N 4 ½ $48.77 $585.24
E L 5 ½ $59.61 $715.32

THE RENT INCREASE HAS NOT YET BEEN APPROVED!

The hearing was originally scheduled for Oct 21, 2015 at 7:30 PM.
It has been rescheduled for Wednesday January 20, 2016.

Here's the notice posted to the basement bulletin board by the mailboxes.
(click on the thumbnail image for the full size scan).
           

Rent increases must be approved by the Fair rental housing board (rent control board)

The landlord cannot just raise the rent due to Elizabeth ordinance 5.70.060 - Increases in base rent.
A. Establishment of base rents between a landlord and a tenant to whom this act is applicable shall hereinafter be determined by the provisions of this chapter. At the expiration of a lease, termination of a lease of a periodic tenant or at the anniversary date of the building, no landlord shall request or receive any increase in base rent in excess of three percent over the base rent received for the twelve (12) months prior. When three percent over the base rent received for the twelve (12) months prior exceeds twenty dollars ($20.00), the maximum allowable increase shall be twenty dollars ($20.00).

B. No landlord may request or receive more than one increase in base rent for any twelve (12) month period.

Landlords are encouraged to enhance their property and recuperate those costs as a Capital improvement.
Ordinance 5.70.010 states
Capital improvements shall be defined as an added benefit to the use of the building and enjoyment of the tenants therein. It shall be a benefit which substantially changes the housing accommodations. Capital improvement shall not include any repair or replacement of an already existing facility, or those items or services required by law, or previously required by law. The addition of, or improvement, to laundry rooms, vending equipment and facilities and items of like nature shall not be considered capital improvements. The conversion of one heating system for another or the replacement of windows of similar quality shall not be deemed a capital improvement

Our landlord is applying for a rent increse, claiming that the new Trane UniTrane fan coil units constitute a Capital Improvement.
That claim will be challenged because