The Jersey City Council unanimously approved (9-0) a measure banning rent-setting algorithms such as RealPage, as well as increasing benefits for laborers, at last night’s meeting.
By Daniel Ulloa/Hudson County View
32BJ SEIU Vice President and New Jersey State Director Ana Maria Hill explained that RealPage allows landlords to collude to raise rent dramatically.
“It is a road map through collective price hikes … RealPage advertises an ability to raise rents. This is not innovation, it is exploitation. It is exactly what anti-trust law was designed to protect,” she declared during public comment.
Hill noted several RealPage and 10 major landlords are defendants in a lawsuit brought forth by the New Jersey Attorney General’s Office accusing them of rent-fixing.
“Our city is now routinely ranked as the top for rent in the country, only behind New York City and San Francisco,” she added.
Sarah Levine said she is a former New Jersey Deputy Attorney General who is experienced in anti-trust law.
“It does not matter how that collusion happens. It is also illegal if I enlist another company to do it … The proposed ordinance is common sense,” she declared.
Daniel Feldman said that while the ordinance is a good first step, it does not address rents already inflated and felt that a $2,000 daily fine may be a little light for large corporate landlords.
Jersey City Apartment Owners Association Executive Director Wendy Paul, who has been outspoken against the ordinance, said the local legislation should be tabled.
“There is an affordability crisis here … Any individual without any substantial evidence can bring legal action against any multi-family owner … Few property owners use the technology,” she declared.
Portside Towers Tenant Association East President Kevin Weller called Ward E Councilman James Solomon’s proposal “vital legislation that confront one of the most insidious threats facing tenants today.”
“Developers deploy algorithms to extract maximum rent from tenants … Rents continue climbing beyond what the law allows,” Weller stated, further stating that five percent of landlords control 60 percent of rental units in the city to applause.
New Jersey Association of Relators lobbyist Bruce Shapiro said they did not want the law to apply to real estate agents and was pleased that Solomon obliged them as the sponsor.
He also wanted another amendment to ensure that Multi-Listing Services of homes for sale are not included.
“It matters very much to feel … that after years we’re being heard. Homes are not commodities,” Portside Towers Tenant Association member Jessica Brann said.
She accused them of artificially increasing scarcity to make more money.
SEIU 32 BJ union Political Director Adrian Orozco praised the Hudson County Board of Commissioners for supporting this effort as well.
“This is a common-sense piece of legislation,” he said.
Orozco approved of the realtors being excluded from the ordinance and owners of multiple buildings using algorithms but not colluding.
However, he did not want the Multiple Listing Service (MLS) excluded since it is not public information.
Portside Towers Tenant Association West President Michele Hirsch noted their landlord Equity Residential has been using Real Page and has skirted Jersey City’s rent control laws.
“Some residents face rent increases more than 50 percent. This is what happens when companies manipulate what is called market rate,” she explained.
“The House of Representatives is considering banning municipalities from these types of actions,” Solomon noted.
“I deeply hope we can enforce this,” Ward B Councilwoman Maureen Hulings said before voting aye.
Ward D Councilman Yousef Saleh also questioned the enforceability, but voted yes “in good faith.”
“This is a great ordinance. Portside, you guy really have been here the past three years years kicking ass. Keep up the good work,” stated Councilman-at-Large Daniel Rivera, who said amendments may still happen.
“I believe this is a good ordinance. My concern is the enforcement … They said they’re going to bring this back,” noted Council President Joyce Watterman.
The Jersey City Council passed the ordinance unanimously (9-0) to applause.
RealPage Senior Vice President of Communications & Creative Jennifer Bowcock expressed dismay about the ordinance being voted in local law.
“We are disappointed to hear about the City of Jersey City passing legislation that will ban the use of certain nonpublic data in our revenue management software, as we believe such data can be used in pro-competitive ways that benefit the entire rental housing ecosystem, including renters and housing providers,” she said in a statement.
The other measure, which would set the minimum wage compensation at $24 an hour, with 12 paid holidays a year, and two paid weeks of vacation after one year of service, did not yield much discussion and also cleared the council 9-0.
Solomon, a mayoral candidate who held a press conference on the ordinances Tuesday morning, expressed enthusiasm about their passage in a statement.
“We’ve sent a message. This city belongs to the people who live and work here—not to landlords gaming the system or developers cutting corners on worker pay. Jersey City is fighting back—and winning.”
Editor’s note: This story was updated with a comment from RealPage Senior Vice President of Communications & Creative Jennifer Bowcock.
