Union City Rent Control Ordinance: Caps, Increases, and Protections

The Union City rent control ordinance, codified as Chapter 334 of the municipal code, caps most annual rent increases at the lower of 3.0% or the change in the Consumer Price Index for the New York–Northern New Jersey area, with a 2.0% ceiling for qualifying senior tenants. It also creates a Rent Stabilization Board that hears disputes, approves or denies increase applications, and can order refunds when landlords overcharge. Most residential rentals in the city are covered; a few narrow categories are not.

Which Buildings Are Covered

Chapter 334 reaches most residential rental units in Union City. Two categories fall outside it.

Owner-occupied buildings with three or fewer total units on the tax lot.
Non-owner-occupied buildings with two or fewer units on the tax lot.

A 2024 amendment tightened the owner-occupied exemption from four units down to three, so older guides describing a four-unit line are out of date and more small buildings are now covered.¹

New Construction Is Exempt Under State Law

Separately, New Jersey law exempts new multiple dwellings from local rent control for up to 30 years after completion, or the length of the initial mortgage amortization period, whichever is shorter. Buildings with no mortgage financing get a flat 30 years. Union City cannot override this exemption.² Owners who believe they qualify should file a claim for the exemption with the municipal clerk, or the unit is treated as covered by default.

How Much Rent Can Go Up Each Year

For covered units, the annual increase is capped at the lower of 3.0% or the CPI change for the New York–Northern New Jersey Metropolitan Area over the twelve months before the landlord serves notice.³ The 3.0% figure only controls when inflation runs above it. If regional CPI comes in at 1.8%, the ceiling that year is 1.8%.

Rent can be raised only once every twelve months. Any increase that exceeds the cap or skips required notice must be refunded or credited to the tenant.

Seniors With Qualifying Income

Tenants who are 62 or older and whose household income falls below the threshold for New Jersey’s Pharmaceutical Assistance to the Aged and Disabled (PAAD) program get a lower ceiling: the lesser of 2.0% or the CPI change. The reduced cap applies going forward once the Rent Control Office confirms eligibility.³

The 15% Aggregate Ceiling

Even when several allowed increases land in the same year — the annual CPI bump plus a capital improvement surcharge, for example — no tenant can receive a combined increase greater than 15% in any twelve-month period. The only escape is a Board finding that operating expenses cannot otherwise be met.³

When a Landlord Can Ask for More

Two paths let a landlord seek an increase beyond the annual cap, and both require a Board application with notice to affected tenants.

Capital Improvement Surcharges

Substantial upgrades that extend the building’s useful life can support a surcharge; routine maintenance and repairs cannot. The cost is spread across the useful life of the improvement, so a roof with a 20-year lifespan is amortized over 20 years of monthly payments rather than billed to tenants at once. The Capital Improvement Application requires the total project cost, the number of units benefiting, and the estimated useful life, backed by original invoices, canceled checks, and itemized breakdowns of materials and labor.⁴

Before the Board reviews the application, the landlord must notify every affected tenant in writing by certified mail with a summary of the request and the proposed increase.³ Tenants can submit written comments or appear at the hearing to argue that the work is ordinary maintenance rather than a capital improvement. The Board can approve, modify, or deny the surcharge.

Hardship Increases

When the standard cap leaves a landlord unable to earn a reasonable return, the landlord can apply for a hardship increase. The building’s annual operating expenses must exceed at least 75% of its total annual gross income. Operating expenses include property taxes and normal recurring costs but exclude mortgage payments, financing costs, depreciation, and the attorney or engineering fees tied to the application itself.³

Notice goes to each affected tenant by both regular and certified mail, and tenants have 30 days to file written comments with the Board. If the Board approves the application, the resulting figure becomes the new base rent and can be increased by an additional 10% after the first year.³

Tenant Protections Beyond the Cap

The ordinance does more than limit rent. Several protections give tenants tools that don’t exist in non-controlled municipalities.

Rent Decreases When Services Drop

If a landlord cuts services, lets maintenance slide, or allows furnishings and equipment to fall below what was provided at the start of the tenancy, any tenant or group of tenants can apply to the Board for a rent decrease. The application must be served on the landlord with a detailed explanation of the problems.³

Succession Rights

When a tenant dies or permanently leaves a rent-controlled unit, a family member who lived there for at least two years immediately beforehand has the right to a renewal lease or protection from eviction. For senior citizens and disabled persons, the required co-occupancy period is one year.³

Harassment Is Prohibited

The ordinance defines landlord harassment broadly, including reducing services, making frivolous eviction threats, and using a tenant’s immigration status as an intimidation tactic. It applies whether the landlord acts intentionally or negligently.³

Eviction Grounds Come From State Law

Rent control does not address eviction directly. That comes from New Jersey’s Anti-Eviction Act (N.J.S.A. 2A:18-61.1), which applies to every Union City tenant and requires a landlord to prove one of the statutory grounds — nonpayment of rent, disorderly conduct, habitual late payment, or lease violations involving illegal activity, among others — before filing an eviction. There is no no-cause eviction for covered tenancies, and a proper notice to quit must precede any action.

Landlord Registration

Every landlord of a multifamily dwelling must file a certificate of registration with the Rent Stabilization Board when the first tenancy is created. It must list the owner’s name, address, and phone number; the lessor if different from the owner; and a local agent who resides in Union City with full authority to act for the owner. Corporate landlords must also name a corporate officer and give the principal place of business.⁵

Each new tenant must receive a copy of the certificate, and any amendment must go out to every occupant within seven days of filing with the Rent Board Administrator.⁵ An unregistered landlord faces fines and cannot pursue any annual increase, hardship increase, or capital improvement surcharge until registration is current.

Penalties for Breaking the Rules

Enforcement is structured so noncompliance costs more than following the ordinance.

General violations of Chapter 334, including filing false information with the Board, carry a fine of up to $1,000 or up to 90 days in jail, or both. Each affected unit is a separate violation, so an illegal increase across a 10-unit building is ten offenses.
If the Board finds a landlord charged more than the maximum allowable rent, the unit is barred from receiving any increase for two years starting at the next lease renewal. For month-to-month tenancies, the freeze runs 24 months from the last month found in violation.
A first maintenance-related violation carries a fine of up to $2,000 per unit. Subsequent violations carry a minimum $2,000 fine per unit, and each day the violation continues is a separate offense.

The Board can also order rent rebates with no time limit on how far back the rebate reaches. A landlord who has been overcharging for years may owe refunds stretching to the first month of the overcharge.³

Where to Get Help

Tenants and landlords with questions can reach the Rent Control Office at 201-348-5734. The Capital Improvement Application and other forms are available at the Rent Stabilization Office or through the city’s website.

1
Ecode360. Union City Ordinance 2024-27 – Amending Chapter 334 Section 2(B)(1)
2
Justia. New Jersey Revised Statutes Section 2A:42-84.5
3
ecode360. Union City Code Chapter 334 Rent Stabilization
4
City of Union City. Capital Improvement Application
5
ecode360. Union City Code Chapter 329 Rental Property – Article I Certificate of Registration