Council Passes Rent Freeze Ordinance

Council Passes Rent Freeze Ordinance
Posted on 05/21/2020
Council Passes Rent Freeze Ordinance

UPDATE: Due to the COVOID-19 pandemic, Township Council passed Ordinance O-20-20 on August 4, extending the rent increase moratorium to December 31, 2020.

Montclair Township Council passed Ordinance O-20-08 at the May 19 Council meeting, to place a temporary moratorium on rent increases during he COVID-19 pandemic state of emergency. The moratorium prevents any increase in the amount paid in rent or any additional charges by residential tenants in all residential rental units in the Township. The Ordinance is retroactive to May 1 and will remain in effect until August 1 of this year – the Governing Body also passed a resolution declaring an emergency in order to have the Ordinance take effect retroactively and immediately.

“In light of the ongoing financial hardships, the severe disruption to the economy at all levels, and in the spirit of the moratorium on the execution of warrants of eviction, the Township has determined that the immediate stability of rents is necessary for the public interest and is best served by placing an immediate, temporary moratorium on all rent increases,” reads the Ordinance.

On March 18, the U.S. Department of Housing and Urban Development, Fannie Mae, and Freddie Mac announced the suspension of all evictions and foreclosures for 60 days. A day later Governor Phil Murphy issued Executive Order 106 to immediately suspend evictions throughout the state. The 90-day rent freeze Ordinance is a township government effort to provide additional relief to residents experiencing housing insecurity and financial difficulties.

Exemptions are:

  1. Rental units in properties that are owner-occupied with no more than one additional rental unit;
  2. Rental units in properties exempt from local rent regulation by state or federal law;
  3. Rental units in which the rent is determined as the function of household income; and
  4. Rental units in hotels.

Download the Ordinance O-20-08.