Harry B. Helmsleys., Plaintiffs-Appellants v. Borough of Fort Lees., Defendants-Respondents…

Summary

The New Jersey Supreme Court held that Fort Lee's 2.5% (later described as 3.5%) automatic rent‑increase limitation was unconstitutional as applied after December 31, 1976 because it failed to provide landlords a just and reasonable return, invalidated the tax‑passthrough repealer in Ordinance 76‑8, and severed the remaining provisions of that ordinance as valid. The Court also affirmed that rent‑control ordinances are permissible when supported by a rational basis and that administrative relief must be prompt and effective.