Lawsuit Against Barnegat Rent Board Settled

BARNEGAT – A lawsuit filed by Pinewood Estates Associates against the Barnegat Township Rent Leveling Board has been settled, township officials announced at a recent government meeting.

The lawsuit, filed in December 2023, was initiated by attorney Christopher J. Hanlon on behalf of Pinewood Estates Associates, the owner-operator of Pinewood Estates Mobile Home Park, located on Route 72 with space for 321 homes.

According to the legal papers, the dispute arose after Pinewood Estates applied to the Rent Board in July 2023 for a rent increase based on rising utility costs and capital improvement expenditures. Pinewood Estates alleged that the Rent Board denied the bulk of its utility expenses to be passed through to the tenants.

Many of the residents at Pinewood Estates own their homes but are considered tenants because they lease their land from the property owner. Pinewood Estates Associates acts as the landlord and the owner-operator of the park.

Pinewood’s July 2023 application sought a monthly rent increase of $21.59, citing specific expenses from 2022 amounting to $187,199.89 for utilities like water and sewage, which are managed on-site. Pinewood Estates submitted detailed documentation to support the request, including invoices and proof of payment.

The landlord’s application for capital improvement increases included expenses for water line upgrades, septic renovations, electrical stanchion improvements, and tree removal. Township Attorney Christopher Dasti said the Rent Board applied a 3.5% cap on utility increases based on a cost-of-living standard from another section of the ordinance.

The terms of the settlement include changes to the township’s Rent Leveling Board ordinance, which are expected to pass at the Township Committee’s October meeting. These amendments include updating the Consumer Price Index to reflect the New York-North Jersey region and allowing rent adjustments for homes replaced by new ones without existing tenants.

Other key changes include:

• Clarifying that repair and maintenance expenses won’t cover capital improvements, which can now be recovered through a capital improvement surcharge.
• Limiting fees for management services to amounts deemed reasonable by the board.
• Adding electricity to the list of utilities for common areas.
• Defining “rental income” as the allowable rental income for all lots, with equal rent increases applied across mobile home spaces.
• Allowing fees for tenant defaults, such as legal or late fees.
• Permitting utility expenses for sewer, septic, or water repairs under $100,000, while improvements exceeding $50,000 could qualify for a capital improvement charge.

Dasti said that he worked with Frank Belluardo, the President of Pinewood Estates Homeowners Association in negotiating the terms of the settlement. The Rent Leveling Board is expected to authorize another portion of the agreement when they meet.

Barnegat’s Rent Leveling Board consists of four regular members and a chairman, with representatives from both Pinewood Estates and Brighton at Barnegat, another mobile home park.

At the September Township Committee meeting, Pinewood Estates resident Dianne Grockenberger thanked Dasti and Deputy Mayor Al Cirulli for their assistance.

“I know it’s not been easy,” said Grockenberger. “I know the [management] company has been difficult to work with, but we really appreciate all the help that you’ve given us.” Other Pinewood residents echoed her gratitude.