New Jersey Administrative Code › Title 5 - COMMUNITY AFFAIRS › Chapter 80 - NEW JERSEY HOUSING AND MORTGAGE FINANCE AGENCY › Subchapter 26 - HOUSING AFFORDABILITY CONTROLS › Section 5:80-26.12 - Restrictions on rents

Current through Register Vol. 56, No. 14, July 15, 2024
(a) The initial rent for
				a restricted rental unit shall be approved by the administrative agent and, if the
				unit is receiving assistance under the Balanced Housing Program, shall be consistent
				with the Balanced Housing grant agreement. The initial rent shall be calculated so
				as not to exceed 30 percent of the eligible monthly income of the appropriate
				household size as determined under
				5:80-26.4; provided, however, that the
				rent shall be subject to the affordability average requirement of
				5:80-26.3.
(b) At the anniversary date of the tenancy of the
				certified household occupying a restricted rental unit, the rent may be increased,
				if such increase is consistent with the regional income limits most recently
				published by COAH, calculated pursuant to
				5:94-7.2(b), and has
				been filed with the administrative agent. If the landlord has charged a tenant less
				than the initial maximum allowable rent for a restricted unit, the landlord may,
				with the approval of the administrative agent, use the maximum allowable rent
				instead of the current rent in performing this multiplication to establish the rent
				for the next tenant under a new lease.
(c) Approved initial rents may not be increased
				when an announcement of a COAH-adopted increase occurs during initial lease-up
				activity. Rents may not be increased more than once a year. Rents may not be
				increased by more than one COAH-approved increment at one time. Rents may not be
				increased at the time of a new occupancy if the new occupancy occurs within a year
				of the last occupancy and prior to the next published COAH-adopted increase. No
				additional fees or charges may be added to the approved rent (except, in the case of
				units in an assisted living residence, for the customary charges for food and
				services) without the express written approval of the administrative agent.
				Application fees (including the charge for any credit check) may not exceed five
				percent of the monthly rental of the applicable restricted unit and shall be payable
				to the administrative agent to be applied to the costs of administering the controls
				in this subchapter as applicable to the unit.
(d) A written lease is required for all restricted
				rental units, except for units in an assisted living residence. Final lease
				agreements are the responsibility of the landlord and the prospective tenant.
				Tenants are responsible for security deposits and the full amount of the rent as
				stated on the lease. All lease provisions shall comply with applicable law. The
				landlord shall provide the administrative agent with sufficient information for a
				preparation of a unit inventory form for entry into the centralized affordable
				housing unit inventory system. The landlord shall submit a copy of each lease
				entered into with a certified household to the administrative agent within 10
				business days after the execution of each lease.
(e) Those tenant-paid utilities that are included
				in the utility allowance shall be so stated in the lease. The allowance for
				utilities shall be consistent with the utility allowance approved by DCA for its
				Section 8 program.