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The League of Women Voters of Southern Monmouth County have prepared a fact sheet regarding the rent stabilization referendum in Asbury Park scheduled for Tuesday, April 20.

The following is the text of the fact sheet:

Question

Shall the Ordinance submitted by initiative petition be adopted so that, generally: rent increases on residential property may not exceed a set cap, a new Rent Leveling and Stabilization Board is created to oversee and approve legal rents and rent increases for residential properties within the City of Asbury Park, such Board will ensure residential rental dwellings are in compliance with relevant municipal safety and maintenance codes, and landlords may apply to such Board for increases in rent to cover building operating expenses or hardship? 

Interpretive Statement (as it appears on ballot) 

This Ordinance proposes to amend the Asbury Park City Code to provide that, as of January 1, 2021: (1) with certain exceptions, existing non-owner-occupied residential dwellings and owner-occupied residential dwellings containing more than two (2) units will be subject to rent stabilization; (2) rent increases for such dwellings will be capped at the lesser of the Consumer Price Index increase for a certain twelve (12) month period prior to the proposed increase or four (4) percent; (3) the CPI base year to be employed is specified; (4) Asbury Park will create a Rent Leveling and Stabilization Board to oversee the execution of this ordinance whose duties will include setting legal rents and related surcharges and approving rent and related surcharge increases; (5) all landlords must register with the Rent Leveling and Stabilization Board and provide all of their current tenant, lease, and rent information; (6) any landlord seeking to increase rent or related surcharges must demonstrate that their property is in “substantial compliance”; (7) “substantial compliance” means that the property is free from all violations of state and local health and safety codes; (8) in certain circumstances a landlord may qualify for an increase in rent by demonstrating financial hardship, i.e. a “hardship increase”; (9) a landlord may only qualify for a hardship increase in rent if their property is in substantial compliance, they meet Asbury Park’s registration requirements, and they notify tenants in writing of the hardship application; (10) in considering hardship rent increases, the Rent Leveling and Stabilization Board will consider the level, quality, and efficiency of service rendered by the landlord in maintaining and operating the building, whether the landlord made a reasonably prudent investment in purchasing the property, whether the operating expenses are reasonably incurred and the income statement is accurate, and any other factor that the Board finds relevant to considering whether an increase in rent is justified; (11) no dwelling subject to rent stabilization under this ordinance can be exempted or decontrolled due to a new vacancy; (12) any rent increase exceeding twenty percent (20%) in any one (1) year for any tenant will be considered unconscionable and will not be permitted. A “Yes” vote is a vote to approve the Ordinance. A “no” vote is a vote against the Ordinance. 

Background 
(Prepared by the League of Women Voters of Southern Monmouth County)

The Asbury Park City Council passed a rent stabilization ordinance in March, having rejected a proposed ordinance offered by a group of residents last year. The council-adopted ordinance is scheduled to take effect June 1, 2021. The resident-proposed ordinance, submitted by referendum petition, appears on the ballot in a special election April 20. Voters have an opportunity to choose between the two ordinances. 

The key differences in the two ordinances are:

• The council-adopted ordinance applies to rental units in any building containing 5 or more units. The petition referendum ordinance applies to all rental units, except those in owner-occupied properties containing 2 or fewer units. (There are other exceptions in both ordinances.)
• The council-adopted ordinance limits increases to 3.5% or the inflation rate as measured by the Consumer Price Index (CPI) whichever is higher. The petition referendum ordinance limits increases to 4.0% or the CPI whichever is lower. The most recent inflation rate calculation based on CPI is 2.6%. 
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  The council-adopted ordinance establishes staggered terms and requires that at least 2 members are tenants and at least 2 members are landlords. The petition referendum ordinance establishes simultaneous 3-year terms for all members and requires that at least 4 members are tenants and at least 2 are landlords.
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  The council-adopted ordinance specifies that when a tenant vacates a unit, rent for a new tenant can be set at any level. The petition referendum ordinance continues to control the rental rate for a new tenant regardless of any period of vacancy.
• The council-adopted ordinance can be changed in any manner the council sees fit at any time. The petition referendum ordinance cannot be changed by City Council for three years; under New Jersey law, it can only be changed during the first three years by another referendum ballot question. 

Reasons to vote “Yes” 
(a ”Yes” vote replaces the council-adopted ordinance with the petition referendum ordinance proposed by the ballot question)

• Believe that rents should not be increased by more than the CPI annually, and that rent increases should be capped at 4%. 
• Believe that rent stabilization should apply to all rental units, except owner-occupied properties with 2 or fewer units.  
• Believe landlords should not be able to set a new rental rate outside of rent stabilization rules when tenants vacate.
• Believe that the ordinance should require a majority of tenant members on the new board.
• Believe that the City Council should not be able to make changes in the ordinance for three years.

Reasons to vote “No” 
(a ”No” vote rejects the petition referendum ordinance and leaves the council-adopted ordinance in place.)

• Believe that landlords should be allowed to raise rents by at least 3.5% annually and match the increase in the CPI, if higher. 
• Believe that rent stabilization should not apply to properties with fewer than 5 units.
• Believe landlords should be able to set new rental rates outside of rent stabilization rules when tenants vacate.
• Believe that the ordinance should not require a majority of tenant members on the new board.
• Believe that the City Council should be able to make changes to the provisions of the ordinance at any time.

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