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AN ORDINANCE AMENDING TITLE II, ADMINISTRATION, CHAPTER 10, DEPARTMENT OF ECONOMIC AND HOUSING DEVELOPMENT, OF THE REVISED GENERAL ORDINANCES OF THE CITY OF NEWARK, NEW JERSEY, 2000, AS AMENDED AND SUPPLEMENTED, BY ADDING SECTION 10, UNCONSCIONABLE RENT INCREASE, TO ADDRESS INCREASES IN RENT THAT ARE CAUSING AN UNDUE BURDEN ON RENTERS.
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WHEREAS, a housing study in Newark conducted by CLiME, Rutgers Law School prior to the COVID-19 pandemic found the City of Newark (the "City" and/or "Newark"), rents have increased by 66% in fifteen (15) years; household incomes have only increased by 24% in that time that 45% of residents live in small apartment buildings of two (2) to four (4) units, 78% of Newark residents are renters, an unusually high rate; 60% of renters in Newark are rent-burdened or 41,000 households; and
WHEREAS, the coronavirus pandemic brought unprecedented hardship to renters, the State of New Jersey has encountered unconscionable rent increases, coupled with rising consumer costs, that are harming New Jersey renters; and
WHEREAS, under the Anti-Eviction Act, N.J.S.A. 2A:18-61.1(f), a landlord cannot make you pay an increase in rent that is so large that it is unconscionable; and
WHEREAS, the City is following the national trend with rents rising faster than income growth and in 2022 according to Zillow, New Jersey's rent shot up 11.7% last year, several states saw sharper increases and Newark (Essex County) increase by 11.2% increasing the average rent from $1,802.50 to $2,004.78; and
WHEREAS, purchases of residential properties in Newark by corporate entities has caused rents to rise and owner-occupancy to fall, according to a new Rutgers-Newark Study - "Who Owns Newark - Transferring Wealth from Newark Homeowners to Corporate Buyers" (the "Study"); and
WHEREAS, 47% of sales were sold to institutional investor buyers from 2017-2020 according to the Study and the Study recommends...
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