meeting. It's been published in the appropriate newspapers according public meetings act. >> This is official meeting. Roll call please. >> Jim Kto >> here. >> Gerard Kari >> here. >> Lori Monaco >> here. Brad Graves
>> here. >> Steven Tedesco >> here. >> Martha Ray >> here. Joseph Hannon >> here. at Maryland. >> There is one additional correction to the minutes. The uh grammatical one. Well, actually, it wasn't the grammatical. I intentionally made it
singular, but it should have been uh >> intentionally wrong. Yeah. Okay. >> I was intentionally wrong. Uh and item two uh morning along with other members whose it should be terms of office were
renewed not term of office were renewed. See, I I considered the term as each one having a term. So that's why the singular but grammatically s is what should be in there. >> Now did we get a paper from uh Alenni with me for me? Remember we didn't get
one last time but you saw me in >> I haven't seen it but but before we get to that uh I have a motion to accept the minutes with the application. >> A second. >> Any other additional corrections? Not all those in favor
>> I >> minutes are approved as amended now. Now as far I mean I I haven't seen anything left. I'll let >> Yeah. Okay. I mean, we swear
to God, >> right? >> No, no, no. >> I'm telling issues. We have a few things. >> We have uh I can give you an update on
688% Avenue. >> Love an update. >> The uh got a call the other day >> from from from uh one of the tenants. Fortunately, the landlord, the current landlord was there. He again wanted to have her sign
a lease with $2,500 as the monthly rent in it. And he said he was there and he said, "Well, I'm going to pay the difference. She should sign this." And I said, "Absolutely not. That lease has got to have the correct number. >> I got stupid written across my forehead
>> and because he's selling the building and so this way he wants to get the new owners the $2,500 lease and then the new owner is going to fight to get the 2500 bucks. So I so he said he would fix it. Now I haven't heard that if he's fixed it or not because she did send she then texted me
a photo of the lease that he was trying to get with the 2500 bucks. Congratulations. >> The uh got another quote. Interesting. A little background first. Um there is in the statute, New Jersey statute, a provision that exempts new construction
from rent control for the lesser of 30 years and or the life of the mortgage. >> Right. We one other time that was invoked for the old Franklin theater >> when they redid that because they gutted
it snow and and that's one you know background for everybody and so I got a call the other day about 800 Bloomfield Avenue those that's the one that's whereio used to
live had his apartment up there the one is set way back down that driveway >> over by Ro by Ro. Yeah. >> Oh, right. Yeah. >> And cuz the the woman called me, a tenant called me and said, you know, what's the rules? And I said, 5%, 4%. And she said, well, they pay their own
they have their own unit, so they pay their own heat, so it's 4%. And then I cautioned her and I said, well, you should tell the landlord, rent control says 4%. But I will warn you that if he wants to appeal to the board, we would have to review the facts and circumstances of I
don't know what was exactly done on renovation of that building. I know that there was a tenant because Carmen live there were some apartments and she said there are 20 apartments now. >> The one that sit back there used to be a great restaurant too.
>> There's a basketball court. >> Yeah. >> But do they file a roster yearly? I mean, if it's under rent control that there should be a rent roster for it. >> Yeah. I mean, I said >> Oh, unit. Yeah. 20 units. 20 units. Yeah. Supposed to have a rent. But that
being said, >> it might come before us. We would have to determine the facts and circumstances whether it the new construction would apply or not. I don't I don't know exactly what extent was done in that. >> New construction is new construction. That's a renovation. That's a different
thing, >> right? Well, I know. Franklin Theater. We rented it, >> but there were no movie theater. >> The theater movie theater had so >> we should preemptively send them a letter to find out.
>> Well, why don't we why don't we contact >> Maybe we should contact the building department and find out if they have any permits to make new apartments in there or did they just renovate the original 20 that might have been there. I don't know how many used to be here, but I know there was more than one. >> So, there were 20 apartments there.
>> I I don't know. >> I Yeah, I >> I know there were multiple. >> I know that Carmen lived upstairs and then downstairs there were conference rooms because I've been in those conference rooms. >> Originally, there were eight. >> Yeah, I know there was more than one restaurant because I was in there other people.
I've been in meet besides besides South. >> Yeah, I've been in meetings in that building. >> So, there were eight. They they definitely took the restaurant and converted them. It was also what they wound up using for filming in there. Started that was Oh, where was that? I
never went in there. It was downstairs. I used to see the comedians coming to park with no and there's some kind of oper building something in there with shelving and a lot of storage, you know. So, some kind of mail order type thing must be in there. I don't know what it is,
>> but I just thought >> I guess we should find out. >> That comes >> Well, isn't the tenant gonna write address? Well, I I said to the to the tenant, tell the landlord he can only give her 4% increase and then let him fight. >> But isn't the tenant going to come send
us a letter that she was over over uh raised? >> No. Well, she's going to tell Well, >> she was asking day of God. >> She was asking what are the rules. So, I told her and I said you should tell your landlord that he can only charge you 4%. >> Understood. I She's paying for heat.
>> She's paying for heat. Yeah. >> So, I thought I'd just let everybody know about Well, Steve brought up a good point because there's 20 units. They should be having a report, you know, to us ultimately get to the building department about uh the rosters,
>> which is something maybe we should look into this proactively. The the rent rosters is a whole different can of worms. >> I don't see an 800 blue tail on that. No, but but it's a can of worms because
there's not there isn't any real support in the administration for us to get their investors. We have no >> way of getting them ourselves. >> Isn't that what we're supposed to seriously? I'm not being flipped, but I'm being flipped. >> Right. code enforcement is supposed code is supposed to give renters
>> and that's right and and we are we are in in if you look in the code we are obligated for a report to the commissioners now the commissioners aren't making code enforce the rent rosters and
they say well we're too busy we can't do it and so that it's a can of worms >> yeah okay well they're too busy approving a part >> well that's that would one point, but the other point is I think maybe proactively in case it does come before us, we have at least some
answers regarding the construction that might have done and ask them about what your changes were >> and and there is if if the landlord does come, then we can ask them where let's where's your rent rosters and we need the rent rosters before we can even think about
talking about this. Okay, >> then >> I understand now. She was just asking >> just a quick question. Um, you probably said, but I I wasn't I probably messed where we ended up with 688.
>> 688. The landlord said he would change the lease and put the their current >> He said that before, but >> he said that before. So, I don't you know what happens? I don't know. But I did tell the tenant, don't sign it. Okay. So, they were not they will not
sign the lease the other number. >> I'm sure she'll let you know when the correct lease touches her hands >> or I'll get another phone call. >> It was right. >> That was um we had another issue come. Jo, you want to talk about it? The uh
>> senior housing. Senior housing. >> Yeah. There was an issue that that came uh to me. There was a uh a tenant who had an offer to get into senior housing and wanted to know if that would be grounds to,
>> you know, break break the lease and >> I wasn't sure. So, I said we looked into it. Um, so you are able to the statute on it. By the time I got around to taking a look at it and and finding out that that that would be grounds, I got back to the uh to the mayor's office and
they said that apparently the landlord was able to find a new tenant to put in the spot. She was able to go, so everything worked out well. >> No loss of rent. But any landlord would do that to be perfectly honest. But so you're saying that if there is a loss of
rent, it does not matter. I see >> right statute. Fascinating. >> Yeah. >> Which I didn't know about until we had to look into >> there's a statute on that. >> There's a stat. Well, I we just found this out. I just found there's a statute that says if a tenant is accepted into a
senior building, >> they the landlord does it, they can break the lease. >> Okay. But my question and I thought that's what I meant when I said Yeah. >> So the new tenant, is that considered a new tenant? So the rent could go up to Oh, yeah. Oh, no. Okay. For sure, man.
For sure. >> That's why the landlord, I'm sure, was confident >> as long as he gets it rented. Otherwise, he's >> Oh, yeah. >> The statute is there's termination of certain residential leases and and he says due to this, but it's more than just disabilities, correct? There are
there are four circumstances which allow people terminate the lease. Uh disability being one of them, loss of, you know, income and jobs and stuff is one. Uh, moving into senior housing is another. >> So, there are there are four exceptions.
>> Most of the job is is is Yeah, I guess that makes kind of sense. >> I think the owner would want him the out. >> Well, I think >> you got to be over 62. >> You got to be over 62. There's age. They're all age related. >> It makes sense.
>> Has to be in a federally or state subsidized. >> There are requirements >> like a HUD building, not a HUD building. It has to be subsidized through a hospital because I got that subsidized through a hospital. >> Fascinating. I didn't know any of this. >> Okay.
>> Well, I looked at it for a specific issue that was, you know, >> then the other issue is what we talked about a little bit last time about the hardship
increase. as a carry over to new landlords. Not with respect to see not with respect to the ones where they've already gotten the 10% increase, but the ones who have not gotten the 10% increase yet. Does is it applicable to that?
>> The ones who have not gotten >> have not gotten it yet. >> In other words, the board approved it. >> Yeah. >> But the lease didn't come up. >> But the lease didn't come. >> We had two issues last month. >> I remember. Yeah. That's what I I wanted to clarify for. >> Yeah. So, if we granted it in May, it wouldn't be I mean, there's a whole
year, a whole cycle before everybody hits the 10%. Some people have already hit that gotten the 10% and some people haven't. And nobody has argued that, you know, complained that they don't want to pay the 10%, but it's a theoretical
discussion. Well, and and let me I mean I think that the ordinance answers it because if you look at the language of the ordinance, the hardship increases, it says any hardship granted, which we granted it, right? Pursuant to
this section shall be included. So, it's a shall and become part of the base rent for any future charges, changes or rent increases. So, I think it's saying once we grant it, it becomes part of it. All right. And and what I
and when you look at the capital improvement, it's different. Capital improvement says any capital improvement rent increase granted pursuant to section shall not be included in the base rent for the calculation of annual charges or rent increases. So
>> because it expires at the >> when you pay for the improvement >> after the depreciation period has ended that increase goes away. >> Correct. So, but but I think that and I know that there are different circumstances, but the way and I think it's based on how the ordinance is, you
know, I don't think there's like, you know, and I think that it >> so so if we granted it to the building, then I agree. >> Yeah. >> If we granted it to the landlord, then I still don't know. >> Well, I mean, listen, I I think it's based on how we want to interpret it as
a board. I really do. I think it's open to interpretation how we want to do it. I think it's open. But I mean that seems to I mean well you only grant it for the landlord. It's not it's not for building. I mean, it's it's land hardship >> is is getting a hardship for, but you
know, I mean, I I think that I think there's, you know, maybe a hole in Newport or about not dealing with a change in ownership address it, you know, and maybe that's something that, >> you know, we might want to consider. See, I mean, the rationale for the
hardship is that the landlord's entitled to a 7% return on the assessed value of the property. Somebody buys a building and if they don't build in profit, that's kind of in my mind, they made a bad deal.
>> I agree. >> So, why should we reward somebody who makes a bad deal? >> You should. I don't look at it like you do. I know you look at it like that and I respect it. I don't know if I necessarily agree with making a bad deal. >> Well, I think there's another way of
looking at it perhaps. And my feeling is is if I was going to buy something from Steve and Steve said, "Look, here's all the situation financially, including I was given by the board a 10% increase because I wasn't making enough money." And then I turn around and say, "Well,
based on the numbers you're giving me, that 10%'s included. So, this is my offer to you. And if you agree, that's the end of the story." So, I I don't I don't I I think I agree with what was already said that >> Well, of course, it based on Yes. And
the sale is based on the numbers. >> That's my feeling. and and and and like Jim said, and then if if I was stupid enough to say, well, you know, you got the 10% but I don't want to give you that much money, and he's agreeing to it, then that's his mistake because he's
getting less money. >> You know, I I changed my opinion because a single family is different. An investment is an investment. You're basing it on numbers. So then that's a dumbest, too. >> I look at it, but not a single family. People go crazy. What I was kind of trying to say,
crazy. Somebody makes a bad deal. Yeah. It's a little harsh though with the understanding that the 10% that's the fuzzy part. >> That's the that's the unknown. Did the >> Did he make the deal with the 10% in
mind or or did the did he I'm sure that the probably the seller would have said something about the 10%. We got a got a hardship. So all these increases all these rents are going to go up >> definitely. So if we make the assumption that that that the deal was based on the
10% being included, >> but you can also make the case that since some people have accepted it and have been paying it that out of fairness, it really should eventually apply to everybody. >> I mean I I just think that the again I
go to Way's word is that any anything that's granted shall shall be included. Yeah. >> Doesn't it doesn't provide for >> So, are we are we in basic agreement that way? >> I think so. >> Okay.
>> Yeah. >> No, it it may or may not come up. >> It's not even Yeah. >> I mean, it's it's more of a theoretical discussion, but it's good to have because it's ahead of time. >> Then we at least we got an answer. >> Agreed. >> Okay. >> Any other landlord tenant issues people
want to talk about or No. question. I don't even know if Tommy Pal is still alive, but um Silia Nobody No, nobody knows. >> Really? For real? >> Yeah. Sylvia is in charge.
>> Sylvia is his property manager. >> Yeah. And her brother is also in charge. >> But then he has a grandson. >> Yes. That's Rocco. Rocky, whatever his name is. because he was at the meeting the one time and and he said to his grandson, "Why didn't you haven't you
handle this?" >> Yes, he did. >> Well, I don't know if it's his grandson. I don't relationship with Sylvia >> and and him. >> I don't know if they're >> Okay. Anyhow, they're putting they're
finally putting in new flooring on the the three floors, square carpets, because they haven't been replaced. Common area. >> Common area. >> Okay. >> Can they come back to raise the rents?
>> Only if they apply for a capital improve improvement. >> Yep. >> Okay. >> And they have to go through the process, >> which doesn't quick >> and it's not necessarily granted as somebody knows. >> This is true. I'm sure they will do
that. >> Yes, I can attest. >> I still have all your paperwork. >> I finally threw it out. >> Anything else? No sir. >> Any other open discussion? >> I can chat about anything anytime. No, I'm just kidding. I'm good. I'm good. I'm dealing with my issues.
>> We can't do nothing about not having hot water for 4 days or not having >> heat and my sister. Don, >> this is my sister when she talks. Are they entertain a motion to adjourn? There's nothing else. Uh second. Sorry.
All those in favor? I I