N.J. Admin. Code § 5:80-9.4

Current through Register Vol. 56, No. 21, November 4, 2024

Section 5:80-9.4 - Rent increase application

(a) Housing sponsors desiring to implement a rent increase of an amount greater than three percent of the current rent, or the increase which would be derived by multiplying the current rent by the increase, if any, in the overall Consumer Price Index for New York-Northeastern New Jersey as published by the United States Department of Labor, Bureau of Labor Statistics as of September 30 of the year preceding the year in which the increase is sought to be implemented, whichever is less, or for a project receiving subsidy, assistance, insurance or guarantee by HUD shall submit a rent increase application to the Agency's Director of Property Management. The application shall consist of the rent determination and the following supporting documents:

1. Name of sponsor, location of housing project, number of apartments of each type;

2. Date of initial occupancy;

3. For Section 236 developments, a status report on the housing project's implementation of its current energy conservation plan;

4. A narrative statement of the reasons for the rent increase;

5. Most recent certified audit report prepared in accordance with Agency regulations;

6. Summary of income and expenses for the preceding 12 month period prepared on an accrual basis for non-federally subsidized housing projects. For all projects with Federal subsidy, monthly operating reports will be required for the preceding three months;

7. Annual budget on which the requested rent increase is based; and

8. Copy of notice to tenants in accordance with 5:80-9.6.

(b) In housing projects where there is a valid Housing Assistance Payments contract, in accordance with which rents are or may be adjusted, the sponsor is not required to submit a rent increase application. Rents will be adjusted in accordance with the contract without resort to the rules within this subchapter, except that the sponsor shall still be obligated to make the rent determination as required by 5:80-9.3.

(c) In housing projects where there is no Housing Assistance Payments contract or other subsidy, assistance, insurance or guarantee from HUD, the sponsor is not required to submit a rent increase application for an annual rent increase for an amount not greater than the lesser of:

1. Three percent of the current rent; or

2. The increase which would be derived by multiplying the current rent by the increase, if any, in the overall Consumer Price Index for New York-Northeastern New Jersey as published by the United States Department of Labor, Bureau of Labor Statistics as of September 30 of the year preceding the year in which the increase is sought to be implemented.

(d) For projects under (c) above, the sponsor may implement an annual rent increase for an amount not greater than the amount calculated pursuant to this subsection by submitting a letter so notifying the Agency's Director of Property Management at least 30 days prior to implementation of such increase.

N.J. Admin. Code § 5:80-9.4

Amended by R.1991 d.334, effective 7/1/1991.
See: 22 New Jersey Register 2389(b), 23 New Jersey Register 2055(a).
Text on notice to tenants and cooperators recodified to 9.6; text on supporting documentation recodified from 9.3 and renamed rent increase application; text from old 9.8, on automatic annual adjustments added at (b).
Amended by R.2003 d.128, effective 3/17/2003.
See: 34 New Jersey Register 3153(a), 35 New Jersey Register 1409(c).
In (a), rewrote the introductory paragraph and inserted "N.J.A.C." following "in accordance with" in 8; added (c) and (d).