Woodbridge landlord of 456 units ordered to stop raising rents

WOODBRIDGE – The landlord of a 456-unit apartment complex for people at least 55 years old in the Iselin section, has been ordered immediately to stop offering rents which exceed a 5% increase after allegedly telling tenants that the complex's exemption from rent control expires in 2031, when it actually expired 18 years ago.

Woodbridge Hills residents had testified before the township's Rent Leveling Board about rent increases ranging from 7.5% to 8%.

Under the township's rent control ordinance, at the expiration of a lease, no landlord shall request or receive a rent increase greater than 5% of the base rent for the previous 12 months.

One tenant in his 70s told the Rent Leveling Board he's paying $1,983 a month under a lease that expires in May 2023 and the proposed increase would be $2,131.72, an increase of 7.5 percent, according to the board's resolution.

Another tenant testified his lease expired in September 2022 with a monthly rent of $1,625 and the new rent is $1,755, an increase of 8 percent, the resolution says.

Other Woodbridge Hills residents testified about rent increases ranging from 7.5% to 8%.

One tenant who works part time after losing a full-time job and doesn't qualify for government assistance, said she struggles to afford food in addition to paying for rent, while another tenant testified the rent was so high, he was forced to move.

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Another tenant said her rent has increased 13% since she first moved in and a man who is retired after working in law enforcement for 27 years, said he had to get a part-time job to help pay for the rent increase.

About 10 tenants testified before the board and many mentioned that their lease states the rental exemption expires in 2031, the resolution says.

In addition, the Rent Leveling Board has ordered the landlord to furnish all rent rolls and lease agreements from 2004 to help calculate refunds owed to tenants, according to a public notice.

The Rent Leveling Board referred the violations to the Woodbridge Municipal Court for the assessment of any penalties.

Information about how much of a refund tenants would receive was not immediately available. The landlord, meanwhile, looks to fight the board's orders.

"We will appeal the March 21st decision rendered by the Woodbridge Rent Control Board, which is inconsistent in fact and law and is contradicted by a finding its own attorney made in 2007," Derek Reed, attorney for Woodbridge Developers LLC, said in a statement. "At a hearing on Friday. March 31, the judge ruled that the administrative process has now concluded so we can seek judicial review of the misguided and legally flawed administrative process in this case. We are reviewing our options to appeal, but we remain confident that our rental increases are in full compliance with the law."

According to a public notice, the Rent Leveling Board approved a resolution on March 21 determining that Woodbridge Developers LLC, the landlord for the Woodbridge Hills apartment complex at 400 Hampton Lane, violated the township's rent control ordinance.

The board conducted the hearing on Nov. 10, 2022, and listened to testimony from Woodbridge Hills tenants and reviewed testimony from tenants and their lease agreements, written submissions from Woodbridge Developers as well as relevant township ordinances and state statutes, and mortgage and construction loan agreements from Woodbridge Developers , according to the public notice.

Reed provided a written response to the board indicating Woodbridge Hills was constructed in two phases, 427 units in 2001 and 32 more units in 2004.

In 2001 Woodbridge Developers submitted a written notice to the township code official claiming an exemption from the rent leveling ordinance. A similar notice was submitted in 2005 with the second phase of the project's construction, the resolution says.

The landlord argues units in phase one of the project are exempt from rent leveling until Nov. 1, 2024, and the exemption for phase two units expires on Jan. 29, 2037.

According to the board's resolution, since the initial mortgage had a term period of four years, the rent leveling exemption for Woodbridge Hills expired on Nov. 2, 2004, not Nov. 1, 2024, as argued by Woodbridge Developers, and all rental increases above 5% from that date forward were unlawful under the rent control ordinance.

The resolution also says Woodbridge Developers violated the New Jersey Rent Control statute by incorrectly telling tenants that the rent control exemption expires in 2031 and failing to provide prospective tenants with a written statement that the apartments were exempt from rent control.

Woodbridge Hills is an age 55 and over active adult community featuring 456 one-bedroom and two-bedroom apartment units ranging from 800 to 1,170 square feet, according rental listings for the complex.

Each unit includes an eat-in-kitchen, dishwasher, refrigerator, oven, wall-to-wall carpeting, ceiling fans, central air conditioning, walk-in closet, private patio and extra storage. The units also allow pets. Rents range from $1,820 to $2,595, according to its website.

Email: srussell@gannettnj.com

Suzanne Russell is a breaking news reporter for MyCentralJersey.com covering crime, courts and other mayhem. To get unlimited access, please subscribe or activate your digital account today.

This article originally appeared on MyCentralJersey.com: Woodbridge NJ landlord of 456 units ordered to stop raising rents