HOBOKEN, NJ — Hoboken’s rent control law has, since 1973, shielded tenants from unexpected rent increases, but with rents in newer Hoboken buildings now among the highest in the nation, a landlord group is pushing to let owners of older rent-controlled buildings pay for a one-time unlimited rise.
The landlord group recently got enough signatures to take their decontrol proposal to a a public vote in November.
Tonight, Hoboken’s council is considering a “compromise” measure to keep the landlords’ proposal off the ballot, but it’s unclear what protections it will have for tenants who say they’ve been subtly pressured to leave in the past.
The Hoboken City Council plans to meet virtually at 7 p.m. to discuss the possible compromise. (See the Zoom links to the meeting at the end of the story.)
One tenant advocate — who worked out a compromise a year ago that the mayor vetoed — said she’s worried that the compromise may not include strong enough protections.
What It’s All About
Right now, rent control limits older (and some newer) buildings in the city to increases that rise with the cost of living adjustment, while giving landlords allowances such as the ability to tack on a water or tax surcharge. Landlords can also get a one-time 25 percent decontrol when a tenant leaves voluntarily, every three years or longer.
The landlord-backed decontrol proposal would allow landlords to pay $2,500 into an affordable housing fund in order to raise the rent to whatever they want when a tenant leaves, one time. The landlords were successful this spring in getting enough signatures for a public referendum this November.
Councilwoman Emily Jabbour wrote in her newsletter last week: “The proposed referendum would allow Rent Controlled units to be decontrolled upon vacancy in exchange for a one-time payment of $2,500 to the Affordable Housing Trust Fund. I am not supportive of this proposal, as it will effectively eliminate the stock of Rent Controlled units in the City in exchange for less than one month’s rent.”
If the council votes to introduce the compromise, they’d have to hold a second vote and public hearing, which Councilwoman Tiffanie Fisher said would be scheduled “in or around August 5th.”
See The Proposal Below
The council’s last-minute compromise would place some limits on the one-time increase — rather than allowing it to be unlimited — and give increases based on how long the current tenant has been in the building, granting landlords a larger increase if a tenant has lived in a unit for a longer time.
The compromise says rent control will still apply “indefinitely” to historic addresses, without specifics. It also says landlords using “falsification” to try to get the decontrol could be permanently barred from using the ordinance — perhaps an attempt to make sure tenants really are not pushed out illegally — but it’s not clear how a tenant would notify the city about intimidation.
Any compromise without new tenant protections — advocates have noted —will give landlords a strong incentive to push out longtime tenants,
sometimes through subtle means, even if the state’s anti-eviction laws theoretically protect them. Tenants told Patch recently that their landlords have used various measures to try to get them to leave, which don’t quite rise to the level of an illegality. READ MORE: Delivered Vacant? Hoboken Tenants Fear Demolition, Displacement
Tenant advocate Cheryl Fallick, a former member of the Rent Control Board, met with the Mile Square Taxpayers’ Assocation and came up with a compromise last year that the council approved, but was vetoed by the mayor. Regarding the new proposal, which she only saw Tuesday, she said some parts of it are too easy to get around.
“Item #5 is good but we don’t enforce so, it’s window dressing (& they know it),” she wrote.
Mayor Ravi Bhalla was asked Wednesday if he supports the new version of a compromise. Patch will update this story when he responds.
Public Vote Could Be Close
The landlord group’s last attempt at a decontrol measure failed in a very close public vote more than a decade ago. The Mile Square Taxpayers’ Association, which had been hoping to institute a vacancy decontrol, challenged the election results in court, then dropped their claim in 2014.
Tenant advocates fear that the makeup of town has changed enough that not enough renters will vote to keep rent control as is, or even understand the issue in time.
Renters also may still be registered to vote at their prior address.
You can read the MSTA’s proposed amendment and referendum question here.
Which Buildings Would Be Affected?
Most buildings in Hoboken that are more than 30 years old fall under rent control — but there are exceptions, and some new buildings are governed by local rent control as well.
The state of New Jersey passed a law in 1987 allowing builders to apply for a 30-year exemption from local controls, but they had to follow certain rules about timing, and have to let tenants know the building is exempt when they move in. Some newer luxury buildings in Hoboken have been determined to be under rent control because they couldn’t prove they were exempt.
It should be noted that all rented units, rent controlled or not, fall under the state of New Jersey’s anti-eviction laws. Among them, the state says rent increases can’t be “unreasonable or unconscionable.” A tenant who believes their increase is too high can, by law, withhold the amount of the increase and, if taken to court, plead their case to a judge. But if they lose, they must pay.
In Hoboken, the median rent has risen to above $4,000. Recently, the Zoning Board approved the demolition of three rent controlled apartment buildings where tenants currently live, meaning, they’ll need to find another rent controlled or affordable building or leave town.
(Want to know if your lease or increase is legal? The city has a tenant advocate on retainer to help for free.)
Read prior reporting on the matter here.
How To Join The Virtual Meeting
How To Join Zoom Meeting:
https://us06web.zoom.us/j/8819…
• Phone Number: 1-929-205-6099
• Webinar ID: 881 9724 3579
• Passcode: 145969
Please follow these steps to join Zoom by desktop or app:
1. Click on the link above to enter the webinar meeting.
2. If for some reason you are having trouble with the link, go to zoom.us and on the top right corner, click
“Join a Meeting”
a. Once prompted, enter the meeting using the webinar ID number: 881 9724 3579
b. Select button “Join Meeting.”
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