N.J. Admin. Code § 5:33-3.6
Current through Register Vol. 56, No. 23, December 2, 2024
Section 5:33-3.6 - Rebate calculation and distribution(a) The "Amount to Be Rebated" shown on the front of the Notice shall be apportioned among tenants according to the rent they pay and the number of months they were tenants during the calendar year for which the Notice was issued.(b) The following calculation method shall be used or adapted locally, as long as the statutory requirements for rebate distribution are met. For large complexes, where the numbers get unwieldy, similar rents can be grouped into classes for computation, and the end result divided by the number of rental units in each class. It is generally practical to work with monthly rents, divide the gross rebate amount (R) by 12 (months), and complete the calculation from that basis. Appendix A shows a sample calculation. 4. The total of all calculations should equal the gross rebate amount. If rent classes were used, then divide the amount due each class by the number of tenants or rental units in each.5. For qualified properties that have partial commercial occupancy or have a rental unit utilized by the owner or a resident manager: i. Assign a rent to each commercial unit and add it to the residential rents total ((b)1 above);ii. Divide the sum of the commercial rents by the sum total of rents ((b)2 above);iii. Apply the percentage derived above to the total rebate amount ((b)3 above) for the share attributable to the commercial occupancy. It is not rebatable, but is deducted from the total rebate to determine the net amount due residential tenants.(c) For Notices received on or before November 1, the first rebate of any year shall be made within 30 days and include payment or credit retroactive to January 1 to each tenant resident for any part of that time, and for former tenants whose rent was paid up. Thereafter, pro-rata rebate payments or credits shall be given monthly whenever rents are paid. 1. Rebates shall be completed by the end of the calendar year for all tenants whose rent payments are current.2. When rent payments are delinquent or in dispute, rebates shall be suspended temporarily and held with the tenant's security deposit, pending resolution of the delinquency or dispute.(d) For Notices received after November 1, the first rebate shall be made within 30 days and the last by the following June 30. 1. Rebates shall be made in equal monthly installments derived by dividing the rebate amount by the number of months to June 30.2. When rent payments are delinquent or in dispute, rebates shall be suspended temporarily and held with the tenant's security deposit, pending resolution of the delinquency or dispute.3. When tenants end their tenancy or give notice of intent to do so before their rebate is completed, landlords may make the final payment forthwith, or include it in the calculation of final rent and return of the tenant's security deposit.(e) When a lease is terminated by the death of a tenant, any prior payment or credit due shall be paid promptly to the surviving spouse or the executor or administrator of the decedent's estate.(f) Rebate payments and credits shall be rounded to the nearest dollar. No rebate shall be required if the total for a unit is less than $6.00 per year. If credited rather than paid, rebates shall be treated as immediate rent reductions.(g) Rebates for unoccupied units shall revert to the owner, on a pro rata basis, for whatever periods the units are unoccupied.(h) In instances where property taxes of the owner of a qualified property are affected by a municipality's REAP credit or from a local miscellaneous revenue credit, a reduction equal to the amount of the credit(s) shall be passed along to tenants in the form of a rent decrease, and shall be allocated as follows: 1. Either separately as a direct rent decrease, in and of itself; or2. As a net rent change that accrues from either a tax increase (if the local rent control ordinance allows tax increases to be passed along to tenants) or tax decrease, adjusted by the amount of the REAP credit or the local miscellaneous revenue credit.(i) Regardless of how an owner opts to apportion the rent charge under (h) above, the owner shall notify the tenant of the amount of the REAP or local miscellaneous revenue credit and the manner by which it was applied.N.J. Admin. Code § 5:33-3.6
Amended by R.2003 d.35, effective 1/21/2003.
See: 34 N.J.R. 2379(a), 35 N.J.R. 398(a).
Added (h) and (i).