The Hoboken City Council unanimously (8-0) approved the first reading of a rent control compromise in hopes of avoiding a referendum in the fall at last night’s special virtual meeting.
By John Heinis/Hudson County View
“The Hoboken Council has proposed amendments to the Rent Control Ordinance that seek to maintain existing tenant protections and address concerns raised by a petitioning committee, offering a compromise to avoid the enactment of a potentially less protective initiative referendum,” Council President Jen Giattino read into the record.
“These amendments seek to improve registration and compliance with Hoboken’s rent control laws, strengthen protections for existing tenants, preserve legal and base rate definitions, provide additional funding for enforcement of our rent control laws, and provide funding to expand Hoboken’s Affordable Housing Trust Fund. In exchange, the amendment provides compliant landlords with a one time ability to increase rents on vacant units above Hoboken’s current ordinance.”
She continued that the petitioning committee has agreed to withdraw their initiative ordinance, where after a tenant voluntarily vacates a unit and the property owner voluntarily contributes $2,500 to the Affordable Housing Trust Fund, the rent for a new tenant is agreed on at a freely negotiated rate, if this ordinance passes.
The compromise measure says that “property owners may opt to submit an Intent to Increase Rent Upon Vacancy Form within one year of ordinance adoption, with program registration fees of $100 for currently registered units and $3500 for unregistered units.”
“The Rental Increase Scale for landlords who opt for an Intent to Increase Provision may raise rents in units upon the next vacancy of the unit based on the applicable, following occupancy duration—25% increase for 2 years, 50% for 5 years, and 100% or up to $1750 per month for 10 years or more. An additional fee will be charged when the compliant landlord exercises its right to seek a rental increase. The fees for these vacancy decontrols are as follows: 25%/$500, 50%/$1000, 100%/$2000.”
During public comment, New Jersey Tenant Organization member Michelle Hirsch, who did not appreciate the special meeting being held virtually, saying it was done to “sneak through destructive changes” to the city’s rent control laws.
“This proposal is not just bad policy, it’s a Trojan Horse wheeled into the city under the false banner of ‘affordable housing.’ Make no mistake, this is the landlord lobbyists dream come true, gift wrapped and presented as a solution to the very problem it will exacerbate,” she said.
” … It’s a skeleton key for landlords to unlock unprecedented profits at the expense of Hoboken’s soul, its long-term residents, its diversity, and its character. It’s bad enough that vulnerable people who should be protected by rent control are falling through the cracks due to selective enforcement. But to give landlords a legal pathway to jack up rents by 25 percent, 50, and even 100 percent that’s not just misguided, it’s morally bankrupt.”
Rent control advocate Cheryl Fallick also chided the “fake compromise,” claiming that the property owners and landlords were reaping all the benefits at the expense of tenants.
“Anyone who votes yes is showing that they don’t support their constituents that are renters, they don’t care about them, and they don’t support rent control and they will lie about it,” she stated.
“Anyone who votes yes on this is proving to any renter in town that you don’t support Hoboken’s dwindling middle income and working class residents and you’ll be happy to see every one of them displaced. As a matter of fact, you’re probably looking forward to it. Anyone who votes yes is an enemy of rent control.”
After about another 40 minutes or so of residents and/or advocates speaking out against the ordinance, Mile Square Taxpayers Association Executive Director Ron Simoncini, who unveiled his rent control proposal in March, explained why he thought the ordinance is fair.
“I think that what’s missed here on behalf of the tenant advocates, many of whom you’ve heard speak tonight from outside Hoboken and have a professional interest in the outcome of this discussion, but many of whom were Hoboken people we’ve seen and heard speak at your council meetings forever and whose opinions we have to take to heart,” he began.
“I think my experience here in negotiating with the council over this has been guided by an incredible interest in protecting existing tenants. In every form of the discussions that we’ve had have been to assure that people who are in their homes now will stay in their homes because that’s what rent control is designed to do.”
The council voted unanimously (8-0) to approve the local legislation on first reading, with 5th Ward Councilman Phil Cohen absent.
He reiterated that this has no impact on existing tenants and would simply allow landlords to upgrade their properties and welcome new tenants in the specific aforementioned circumstances.
The referendum effort has been a bit controversial thus far, with the petitioners accused of using unsavory tactics to collect signatures, and then not submitting the necessary amount before remedying the situation.
 approved the first reading of a rent control compromise in hopes of avoiding a referendum it last night's meeting. ){kind=link}
With the inflationary pressures seen not since Jimmy Carter, this is probably the best compromise. Now, upkeep is possible and existing renters are fine. A rare chance to see the City Council working together and agreeing on a significant issue.
Well done.