mobanmarketHOBOKEN, NJ — Hoboken’s City Council voted Wednesday night to introduce a measure that will gradually eliminate rent control when tenants move out of their apartments — but residents showed up to say they are concerned that the measure will only encourage landlords to push current tenants out.
The amendment will go to a final hearing and vote on or around Aug. 5.
The measure introduced by the council would allow landlords to increase the rent, when a tenant moves out, based on how many years the tenant has been in the building — including allowing an increase of $1,750 per month if a tenant has been in the rent controlled apartment more than 10 years. (See the summary of the proposal below.)
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While Councilwoman Jennifer Giattino insisted that the amendment won’t affect current tenants until they leave, several speakers at the meeting pointed out that tenants may end up being pressured in subtle ways if the landlord has a financial incentive to get them out — something that’s already been happening in town, according to tenants.
In fact, several tenants have told Hoboken Patch, as well as NJ.com and other outlets, about ways their landlords were able to apply pressure, in the last two years, to try to get them to move, and have not been penalized.
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At Wednesday night’s meeting, David Mason said, “I’m here to address a dangerous misconception, the idea that this proposal won’t affect current tenants. This ordinance is a direct threat to every tenant in Hoboken, and here’s why: This proposal creates an unprecedented financial incentive for landlords to remove long-term tenants. Let’s be clear about what that means: Harassment. Tenants will face increased pressure to leave. This could manifest as neglected repairs, an increase in ‘inspections,’ and other forms of subtle intimidation.”
Resident Mary Ondrejka said, of longtime Hoboken residents, “They’ve made this their home, they have a vested interest in living in the town…I have a good landlord, but we have to look at the people that, this is very tempting for people 11 years, 12 years [here]. That doesn’t mean because we’ve been here so long that our rents are so cheap. That’s just not true. …There’s a $4,000 average rent? I’m blown away by that idea.”
Another resident, Anthony Spirito, said, “Rent control is one of the primary reasons that I am able to live in Hoboken. The 5 percent annual increase in my rent is already more than what my raise is going to be at the end of the year.” He said if he and his wife want to start a family, it will be hard to move from a 1-bedroom to a 2-bedroom.
Resident Manny Soler said the council should find a way to help mom-and-pop landlords, but not favor the corporate landlords. He said the compromise with landlords would make Hoboken “unrecognizable.”
Resident Patricia Waiters said the city hasn’t created enough affordable housing. She said, “It’s not right to be shaking in your boots not knowing when you’re going to get the last key to your door and you’re facing eviction.”
(Watch the full meeting on Facebook here.)
What’s Going On?
Hoboken’s rent control law has, since 1973, shielded tenants from unexpected rent increases, but now — with rents in newer buildings among the highest in the nation — a landlord group wants to let owners of older rent-controlled buildings pay for a one-time unlimited rise.
Their proposal isn’t sitting well with some tenant advocates, but the landlord group got enough signatures to bring the matter to a public vote in November 2024, during the presidential election.
Thus, there’s a chance the group could get enough votes in November to pass their proposal. And some council members believe a compromise would eliminate this risk.
Wednesday night, the Hoboken City Council met virtually at 7 p.m. to discuss a compromise to keep the decontrol measure off the public ballot.
“The way to look at it is compared with the alternative,” said Councilwoman Tiffanie Fisher this week. “The referendum calls for paying $2,500 for full vacancy decontrol on all units at the end of their occupancy.”
But tenants who came to the Wednesday meeting said they’re worried that the compromise may not include strong enough tenant protections. They made it clear Wednesday night that if the landlords’ proposal goes to the ballot instead, they’re prepared to fight.
New York City lists forms of subtle tenant harassment, but Hoboken hasn’t reached out to tenants and landlords with such a list, or other clarifications of tenant/landlord laws.
Mayor Ravi Bhalla, who vetoed a compromise a year ago, has been silent about how he feels about the current proposal.
Kevin Weller of the New Jersey Tenants Organization issued a letter to tenants after the meeting.
The Current Law
Right now, the city’s Rent Control Ordinance — which went into effect in 1973 and has been amended since then — limits older (and some newer) buildings in the city to rent increases that rise with the cost of living increase, while giving landlords allowances, such as the ability to tack on a water or tax surcharge. They can also raise the rent 25 percent when a tenant leaves voluntarily, if they’ve been there at least three years.
The landlord-backed decontrol proposal that would go to the ballot in November would allow landlords to pay $2,500 into an affordable housing fund in order to raise the rent whatever they want when a tenant leaves, one time.
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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.”
See The Proposal Below
The compromise says rent control applies “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 and how the city would resolve such a complaint.
Tenant advocate Cheryl Fallick, a former member of the Rent Control Board, came up with a compromise last year that the council approved, but was vetoed. Regarding the new proposal, which she only saw Tuesday, she said some parts of it were too easy to get around. “Item #5 is good but we don’t enforce so, it’s window dressing (& they know it),” she said.
The landlords’ 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.
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.
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