Bill Text: NJ A695 | 2012-2013 | Regular Session | Introduced
Bill Title: Limits rent increases in certain low income rental projects financed by the New Jersey Housing and Mortgage Finance Agency.
Spectrum: Partisan Bill (Democrat 1-0)
Status: (Introduced - Dead) 2012-01-10 - Introduced, Referred to Assembly Housing and Local Government Committee [A695 Detail]
Download: New_Jersey-2012-A695-Introduced.html
STATE OF NEW JERSEY
215th LEGISLATURE
PRE-FILED FOR INTRODUCTION IN THE 2012 SESSION
Sponsored by:
Assemblyman RUBEN J. RAMOS, JR.
District 33 (Hudson)
SYNOPSIS
Limits rent increases in certain low income rental projects financed by the New Jersey Housing and Mortgage Finance Agency.
CURRENT VERSION OF TEXT
Introduced Pending Technical Review by Legislative Counsel
An Act concerning rent increases in certain low income rental projects and supplementing P.L.1983, c.530 (C.55:14K-1 et seq.).
Be It Enacted by the Senate and General Assembly of the State of New Jersey:
1. a. For rent increases granted on or after the effective date of P.L. , c. (C. ) (pending before the Legislature as this bill), prior to granting a rent increase, the agency shall hold a hearing at which it shall take testimony from interested persons, including tenants subject to the proposed rent increase, concerning reasons why the increase should not be approved. The agency shall, to the best of its ability, determine the accuracy of any testimony provided at the hearing.
b. For any rental increases approved in projects with project-based Federal rent subsidies or in projects financed by the agency, when the amount of the increase will exceed 2.5 percent annually for tenants aged 62 or older, or 5 percent for other tenants in the project, the amount exceeding those thresholds, respectively, shall be reimbursed to the tenants through the State rental assistance program created pursuant to P.L.2004, c.140 (C.52:27D-287.1 et seq.).
2. This act shall take effect immediately and shall apply to any rent increase approved by the New Jersey Housing and Mortgage Finance Agency on or after December 1, 2005.
STATEMENT
This bill limits a tenant's responsibility for paying rental increases in certain State-financed housing, which has been subsidized by and is subject to the rent control rules of the New Jersey Housing and Mortgage Finance Agency. The bill also requires the agency to hold a hearing prior to the granting of a rent increase in any project subject to HMFA regulations.
For any rental increases approved in projects with project-based Federal rent subsidies, or in projects financed by the agency, when the amount of the increase will exceed 2.5 percent annually for tenants aged 62 or older, or 5 percent for other tenants in the project, the agency must reimburse or subsidize the tenants rent for those amounts exceeding those thresholds, through the state rental assistance program created pursuant to P.L.2004, c.140 (C.52:27D-287.1 et seq.).
Recent increases in the price of home heating oil has caused drastic increases in the operating costs of many landlords who provide utilities. Landlords of projects financed in part by HMFA are permitted to seek rent increases according to HMFA guidelines. For low income tenants on fixed incomes, rent increases over five percent can put their tenancy in jeopardy. The Legislature approved the establishment of a rental assistance program under P.L.2004, c. 140. The bill would require that program be used to freeze the amount of rent increases at 2.5 percent for seniors and at five percent for persons of low income residing in these projects, and provide a subsidy for any increase in rent approved by the HMFA beyond those amounts. The bill would apply to any rent increases granted by the agency on or after December 1, 2005.
