BARNEGAT – A packed room at the local governing body’s February meeting sharply contrasted with the typically low turnout at township committee meetings – particularly those conducted early in the day. The gathering was dominated by concerned residents outraged by a recent ordinance dissolving the township’s Rent Leveling Board.
On December 5, 2023, the Township Committee voted to approve an ordinance repealing the township’s Rent Leveling Board ordinance. While proper notice was provided with the initial reading of the proposed ordinance on November 9, 2023, numerous residents at the recent township meeting appeared to have been caught off guard by the decision.
As a consequence, tenants who disagree with the landlord’s rent increases risk incurring expenses for legal fees and court proceedings. With Barnegat’s decision to dissolve the Rent Leveling Board, this avenue remains the sole recourse for tenants who contest landlords’ rent hikes and additional surcharges.
During the public session of the meeting, numerous residents took the floor, recounting emotional stories. One such individual was David Kruczek, a Pinewood Estates homeowner and the Executive Board President of the Manufactured Home Owners Association of New Jersey.
“We’re not an Active 55 community,” said Kruczek. “Most of us are 75 and 80 and in our last years. All we want to do is for them to leave us alone.”
“We manage to cut our medicine in half; we cut out a doctor appointment to pay our rent now, and we are one of the lowest ones in the state,” Kruczek continued. “People won’t be able to survive on next year’s (rent increase) – let alone two years from now. I hope I die before then.”
Diane Schlagel, who lives in Brighton, recalled how pleased she was when Barnegat officials first decided to institute the Rent Leveling Board.
“We live on a low income, my Social Security and a little bit of money I saved,” Schlagel added. “If our rents go up 15 percent, I can’t live there…I bought that house but it’s on land I don’t own and I can’t go anywhere else. So, I’ve decided I’m going to get a box and go into the Pinelands and live in there – and then the Pinelands Commission will throw me out.”
The dissolution of the Rent Leveling Board left Schlagel and many of the others under the impression that the township committee was not up front about their decision and seemed to favor a corporation that had more money than them.
“It’s the first stop that residents have where the township can hear them out and make a decision,” said Ron Naples, a Brighton resident. “If an owner chooses to appeal it or if the residents chose to appeal it, that’s their decision. It’s a first step at the town and it’s not an expensive one. It’s a service. It’s a protection.”
Meanwhile, Pinewood Estates does not have the same arrangements as Brighton.
Contacted after the meeting, Naples shared his involvement in negotiating a contract with Hometown, Brighton’s corporate owner. He emphasized that the agreement included keeping rent increases to 3% and preventing the passing on of capital expenditures under $100,000.
Despite the favorable terms, Naples highlighted that if disagreements arise, the contract stipulates resolution through the rent leveling process, emphasizing the continued importance of rent leveling in such instances.
Township officials vehemently deny that the intent was to hurt residents. They pointed out that residents still have the right to go to court regarding their appeal of increases. According to Township Attorney Chris Dasti, the Rent Leveling Board further delayed the process of being able to achieve resolutions.
Joseph Sullivan, Executive Director of the Manufactured Home Owners Association of New Jersey said that dissolving the Rent Leveling Board removed what little protection homeowners had in their respective parks.
“The courts don’t understand manufactured housing any better than you do,” accused Sullivan to local government officials. “They compare it to renting an apartment or renting a home… people who are getting Social Security increases of a little over 3% might see their rents go up 10%, 15%.”
Deputy Mayor Alfonso “Al” Cirulli acknowledged the problem with rent increases and said that Township Committee members have been exerting as much pressure as they could to keep costs down. He reiterated that tenants still had the right to bring a claim in Superior Court.
However, Sullivan proclaimed that Rent Leveling Boards play an important role in the process and also suggested that no decisions made by them have been overturned in court.
Barnegat’s Rent Leveling Board faced scrutiny as Pinewood Estates initiated legal action against it on December 21, 2023. The lawsuit claims that the corporate landowner sought a rent increase on July 13, 2023, citing rising utility costs and capital improvement expenses.
Despite the Rent Board’s approval of a utility increase based on rent percentage rather than specific expenses and allowing a capital improvement increase while rejecting tree removal costs, the lawsuit alleges that the Board failed to adequately assess the reasonableness of the denied utility expenses. Pinewood Estates seeks a $21.59 per month surcharge through the lawsuit.
Moving Forward
Township Committee members listened to resident concerns and are considering how to move forward. This may or may not include reinstatement of the Rent Leveling Board.
“We’ve already met with the people from Pinewood Estates,” confirmed Martin Lisella, Township Administrator and a former committeeman. “However, we were told that Brighton worked out their own deals and that’s how all of this came about. One of their leaders told us basically the Rent Leveling Board wasn’t necessary anymore, because it didn’t hold any weight.”
Naples emphasized that Brighton considers the Rent Leveling Board critical. He added that if it is reinstated, it should extend to other residents.
“It’s not just the 500 or so in Brighton and Pinewood,” said Naples. “You’re bringing 700 manufactured homes into the Cottages. Those people are going to need representation and the law should be written so that renters in all the apartments you’re building in town also have representation.”
Rent Leveling Board’s Role
The Rent Leveling Board in Barnegat was established in 2016 and comprised of four regular members and a chairman. Each of the town’s mobile home parks, Pinewood Estates and Brighton at Barnegat, had representation on the Board through both a landlord and a tenant representative.
Although a significant number of Pinewood and Brighton residents own their homes, they are technically classified as tenants since they lease the land beneath their homes from two distinct corporate entities acting as landlords. Rent for the leased land typically falls between $380 and $700 per month.
When the Rent Leveling Board was in existence, landlords could implement a yearly rent increase equal to 3.5% of the previous twelve-month rental income for the mobile home space or the percentage increase in the consumer price index, whichever was less, without the need for application or a hearing.
The local ordinance also authorized landlords to impose a rent surcharge in response to municipal property tax increases. They also had the option to apply to the Rent Leveling Board for additional rent hikes in cases of financial hardship.
In situations where a landlord found that the current rental income and additional charges were insufficient to cover costs such as mortgage payments, maintenance, and operating expenses while ensuring a fair return, they could seek an increase through the Rent Leveling Board.
For major improvements, landlords could request an additional charge. A major improvement, defined as enhancing the lifespan of streets, paving, curbing, water systems, sewer or septic systems, clubhouses, tenant transportation vehicles, or swimming pools with direct benefits to park tenants, required approval from the Rent Leveling Board. The landlord had to demonstrate that the improvement directly benefited the tenants and that renovating or replacing an existing object was more feasible than repairing it.
Both tenants and the landlords had the right to appeal any decisions made by the Rent Leveling Board by application to the Superior Court of New Jersey. This would result in expenses for court costs and the retention of an attorney
