Rent Control in Union City, NJ

[Alberto Camacho]

Taken from Rent Stabilization Ordinance of Union City, NJ

"Applicability. The terms of this chapter apply to individual dwelling units within a building, including condominium or cooperative units in the process of being converted, or having been converted, rather than to an individual tenant occupying a dwelling unit.

Exceptions. This chapter shall not apply to:

(1) Units in one-, two- and three-family buildings.

(2) Units in four-, five- and six-family buildings that are owner-occupied. Owners of four-, five- and six-family buildings, as part of their registration, must file an affidavit stating that they reside in the building. The burden remains on the owner to demonstrate residency.

(3) Motels, hotels and similar type building and buildings intended for transient use, floor space used strictly for commercial purposes in any type building, including state-licensed rooming houses. Dwelling units rented for the first time after the adoption of this chapter are exempt, and the initial rent may be determined by the landlord, but all subsequent rents shall be subject to the provisions of this chapter.

(4) New construction, consistent with state law, shall be exempt from this chapter."

When I read this it sounds as a condo unit is not subject to rent controls assuming it wasn't part a conversion. Just under exceptions (3) it sounds as the initial rent isn't but subsequent rents are.  A condo association can raise maintenance fees at any point so a owner could potentially be in the red for some time when limited to 3.5% increases. 

So based on the ordinance is a condo subject to rent control?

Thanks

[Eric Beepat]

Digging up this old post.  Any owners in Union City receive a letter in the mail stating that 3-family buildings are now removed from this exemption?  

[Marc Weisi]

@Eric Beepat Nice to see you on the site my friend! I went to an event tonight where someone mentioned that Union City now has rent control in place for 3-families and up. This is crazy timing because I was just planning on sending out mailers tomorrow to all absentee 3-4 family owners in UC. I guess that's not going to happen now since it looks like annual rent increases are severely limited. The #'s just don't seem to support the high prices now IMO. For a little information on the rent control that was passed just this year see the below links.

2018 Rent Control Ordinance - Revision!

Rent Control Announcement

Union CIty Rent Stabilization Ordinance 2017

[Sooyeon Kim]

Omg! Then how do they calculate the legal rent when there is no reported rent in the past? And are we supposed to submit the rent rate to the city every year?

[Alejandro Tirso]

@Marc Weisi Does this rent-increase rule apply to owner-occupied 3-families?  Would the rule kick in after you move out?  

[Marc Weisi]

@Alejandro Tirso , great question. I must admit that I don't know because I was looking strictly for owner-occ properties. Feel free to look through the materials I attached in the above.