BARNEGAT – Just days after residents of two manufactured home communities rallied against the local governing body’s decision to abolish the township’s Rent Leveling Board, some homeowners are already feeling the impact of the ordinance’s removal.
A select number of Pinewood Estates homeowners said they received an unsigned letter from the development’s Community Manager, notifying them of an impending rent hike. The February 22 correspondence captioned “Notice to Quit Amendment to Lease with Rent Increase” begins with a reference to Barnegat’s decision to repeal the Rent Control (sic) Ordinance.
Joel Brown, President/COO, RHP Properties issued a statement when asked to comment on the letter that imposes an 88 percent hike in rent for most tenants with a “loyalty discount” bringing down the cost for homeowners who began paying land leases prior to the date of the letter.
“In light of the ordinance dissolving Barnegat’s Rent Leveling Board,” said Brown, “RHP Properties wants to assure residents of our commitment to continue to provide an affordable and quality community.”
Despite many residents of Pinewood Estates owning their homes, they are considered tenants due to their responsibility to pay RHP a land lease. The current monthly rent for most tenants is $353.10. RHP intends to raise the rent by $309.32 to $662.42. However, existing tenants will receive a loyalty discount of $289.42, resulting in a new rate of $373.00 as of April 1st.
“Understanding the financial hardships our residents may face, the recent rent increase at Pinewood Estates includes a loyalty discount program,” Brown stated. “That keeps rent at 44% below the market rate for 95% of residents, resulting in a modest monthly increase of twenty dollars for most residents.”
The February 22 letter also stated the loyalty discount would be exclusively for existing tenants who pay their rent on time and mentioned that late fees of 5 percent will be imposed. It is unclear whether this penalty and the rent increase to $662.42, will be applied to individuals who fail to pay their rent by the sixth or eighth day of the month.
According to the unsigned correspondence, tenants can either vacate their rented premises by March 31, 2024, or if they opt to remain, they will be legally considered to have agreed to the new terms outlined in the provisions. The letter ends by stating that the language used is mandated by law and expresses a desire for the recipients to continue residing in the community.
Residents contemplating selling their properties would face additional implications as far as the rent increase, as new tenants will be required to pay the full market rent.
Homeowner Susan Faulkner’s experience exemplifies the repercussions of this decision. Faulkner’s Pinewood Estates property is her second home, which she listed for sale last October. On February 19, Faulkner’s realtor delivered promising news – a prospective buyer was ready to make an offer after inspecting the home the previous day.
Faulkner’s excitement quickly turned to disappointment upon learning her home would remain on the market. The property’s onsite office had revealed that lot rent, paid by Faulkner as a tenant to RHP, would substantially increase with a change in ownership.
“I was completely blindsided,” said Faulkner. “I had no idea about the impending lot rent increase. These buyers were only seeking a part-time residence and now they’d face nearly double the lot rent they were told I was paying.”
Faulkner claims she never received formal notification of the rent increase, echoing the sentiments of other Pinewood Estates residents. When she contacted Pinewood Estate representatives to inquire about a possible exemption from the hike due to her pending sale, Faulkner reported her request was turned down. This increase not only led to the collapse of this potential sale, but also has Faulkner concerned that she may struggle to find another buyer in the future.
“RHP Properties has owned and managed manufactured home communities for over 30 years and is guided by a philosophy that puts residents first,” Brown wrote in concluding his statement. “We take pride in managing our communities with honesty, integrity and fairness.”
Pinewood residents, grappling with the rent hike imposed by their corporate landlord, question the sincerity of Brown’s assurances. Many are on fixed incomes, elderly and disabled. Some have reported restless nights fearful that the rent hikes will find them displaced from the homes they foresaw as their last stop in life.
What Happens Next
Tenants already found themselves with a $30 rent increase at the beginning of the year. A pending lawsuit against the township’s Rent Leveling Board could add another $21.59 surcharge if the court agrees with RHP’s demands for utility increases.
Known for her outspokenness about adverse conditions at Pinewood Estates to the governing body, Dianne Grockenberger was unable to attend the recent township meeting where residents voiced their grievances about the dissolution of the Rent Leveling Board.
Grockenberger, who serves as the Vice President of Pinewood Estates Homeowners Association said that residents had already begun contributing potential rent-leveling changes for a new ordinance. However, in a letter she distributed to residents, Grockenberger expressed more imminent concerns.
“What we have found is that even if Barnegat Township brings the rent leveling board back,” wrote Grockenberger. “It will not be in time to stop the rent increase. And no matter what the paper RHP is sending, RHP’s intent is to have the rent at $663 for the whole park.”
“We are asking the lawyer to file an emergent stay of the rent increases to stop RHP from obtaining their goal,” Grockenberger continued. “Our goal is to have our case presented to the Superior Court for an emergent stay of this rent increase being it is considered an unconscionable hardship to the residents of Pinewood Estates.”
Grockenberger’s letter to residents came days before a February 28 special meeting attended by at least 100 Pinewood Estates residents, Township Attorney Chris Dasti, Deputy Mayor Alfonso “Al” Cirulli, Committeeman Pasquale “Pat” Pippi, Township Administrator Martin Lisella and the state Manufactured Home Owners Association.
Should Grockenberger still decide to retain a lawyer, she would be doing it on her own because both the local homeowners association and the state representatives have decided against retaining legal counsel.
Dasti led the meeting and informed the crowd that the governing body plans to reintroduce the ordinance at its March 5 meeting for a first reading. The second reading of the ordinance would occur in late March, making it available for adoption before April 1. This ordinance would bring the Rent Leveling Board back.
Audience members clapped in appreciation for the return of the Rent Leveling Board. David Kruczek, a Pinewoods Estates resident and president of the Manufactured Home Owners Association of New Jersey publicly thanked local authorities for moving quickly to help their residents.
“There are a couple of proposed slight revisions to the ordinance that used to be on the books,” said Dasti. “One of the revisions will be that the landlord cannot back-charge you for improvements that directly benefit the landlord.”
Lisella, citing his real estate brokerage experience said that the revised ordinance included language that would also benefit the residents extensively.
“The most important protection in there is when you have to resell,” said Lisella. “That protection is there so that any new person won’t have to pick up the new fee of $640”
Any decision made by the Rent Leveling Board will still be subject to appeal by both parties in Superior Court. Dasti said that the new ordinance will revert back to the original.
“The new ordinance is going to have rent increases like the last one,” said Dasti. “The prior decision of the Rent Board from October is still standing and hasn’t been overturned. They still have to abide by it.”
