Understanding
Elizabeth Rent Control

Elizabeth residents enjoy rent control thanks to ordinances unique to Elizabeth.
The entire ordinance is on the web here: Chapter 5.70 - RENT CONTROL AND STABILIZATION

Every year you renew your lease,
the rent can go up only 3%, capped at $20 a month
To learn more, see Elizabeth ordinance 5.70.060 - Increases in base rent.


There are 2 ways for a landlord to increase the rent
  1. HARDSHIP

    Landlords are allowed to make money.
    A landlord can claim a “hardship” to collect money to make up for an income shortfall.

    Elizabeth Ordinance 5.70.100 - Hardship increase
    specifies 3 methods to determine if they are earning enough money.
    B1: In the event that a landlord's annual residential operating expenses … exceeds sixty (60) percent of his or her gross annual residential income … then the landlord shall qualify for a hardship rental increase in an amount sufficient to reduce his or her operating expenses to income ratio to sixty (60) percent.

    B2: Fair Return on Investment

    B3: Maintenance of Net Operating Income (NOI)
    That is what we are facing now.
    The landlord claims that B1 (the 60/40 rule) allows him reimbursement of
    $715,574.78 for 2014 PLUS
    $139,661.92 for 2015,
    for a total of $855,236.70!


  2. CAPITAL IMPROVEMENT

    Landlords are encouraged to enhance their property and recuperate those costs as a Capital improvement.
    Elizabeth 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.
    If you are familiar with federal or state taxes,
    please be aware that the Elizabeth ordinances specify TOTALLY DIFFERENT CRITERIA
    for what constitutes a “Capital Improvement”.

    The CTTA has challenged every Capital Improvement application by Legow.
    Some were totally rejected,
    such as our recent victory on May 18, 2016 when the Fair Rental Housing Board denied the Capital Improvement application for the Fancoil Project (radiator replacement).

    Other applications were modified, rejecting certain claims such as roof work and brick work.
    Look at your lease and you'll see 2 Capital Improvement surcharges:
    one for 2003 and another for 2007 (they expire in 20 years).

Current capital improvement surcharges

apartment rooms 2003 capital
improvement		 2007 capital
improvement
D K 3 $9.75 $5.28
A C H J 3 ½ $11.38 $6.16
B F I M P 4 $13.00 $7.04
G N 4 ½ $14.62 $7.92
E L 5 ½ $17.87 $9.68

We would all be paying a lot more rent had the CTTA not challenged every application.