The Jersey City Council passed two ordinances up for second reading aimed at improvement rent control enforcement and transparency for tenants, while a third went back to first reading, at last night’s meeting.
By Daniel Ulloa/Hudson County View
An ordinance to establish mandatory minimum fines passed on first reading unanimously, 9-0, without comment from the council since it was an amendment of what was discussed during Monday’s caucus, as HCV first reported.
On an ordinance to impose mandatory disclosures for rent increases, Portside Towers Tenant Association East President Kevin Weller said he supported it “even though algorithmic price fixing can’t touch a building like mine.”
“At Portside, we’ve always been rent controlled,” he said.
Weller said Portside Towers landlord Equity Residential violated the Sherman Anti-Trust Act.
“Truth has no liability – only lies do. If a landlord is setting rents legally, signing this disclosure costs them nothing. If they refuse or lie, well, that tells us everything,” he added before praising the legislation to applause.
“For years, tenants have been fighting blind. We get a rent increase notice with no explanation. Is it based on market research? Operating costs? Or is it based on an algorithm that’s telling every landlord in the area to raise rents by the same percentage? Now we will know. And more importantly, we’ll have proof,” Daniel Feldman said to applause.
Shannon Rae noted that New Jersey Attorney General Matt Platkin launched a lawsuit against Equity Realty and other major corporate landlords alleging price fixing.
“We’re asking them to swear that they’re not breaking anti-trust laws that have existed since 1890,” Rae explained, later calling them “a cartel” for controlling the rental rates.
Portside Towers Tenant Association West President Michelle Hirsch said their landlord, Equity Residential, deliberately omits required information.
“[Landlord/Tenant Relations Office Director Shyrone] Richardson has been handcuffed by landlords who weaponized opacity. This ordinance cuts those cuffs,” she exclaimed.
“Some landlords watching tonight – and yes, they’re watching, their lawyers are probably billing $1,000 an hour for it – think they can wait this out. That we’ll get tired. That you’ll get distracted. They’re wrong.”
Additionally, activist Edward Perkins questions why such measures weren’t introduced sooner, while council-at-large candidate Tina Nalls said the city “has nothing” if it doesn’t have housing.
“We definitely gonna have new people on November 4th!” she exclaimed.
“How many units in Jersey City does this affect?” Ward D Councilman Yousef Saleh asked.
“We know illegal software has been used, affecting tens of thousands of units,” Ward E Councilman James Solomon, who sponsored the ordinances, replied.
He cited the lawsuit by Platkin to justify the estimate, with the downtown councilman also noting LeFrak and Bozzuto are major landlords in the city named in that lawsuit.
Saleh had further questions about who exactly would be impacted, to which Solomon said landlords of buildings with four units or more will be affected.
“It will be practically everything: It is going to impact everyone, it is unsettled law,” Saleh responded, noting that the thought only three to five percent of tenants would feel the effects.
“We wouldn’t want to wait for it to be more,” he added.
Solomon said it is necessary to include a mandatory disclosure in order to create a strong enforcement mechanism.
“All you have to do is add one clause to your standard lease,” he said.
“I want to congratulate the Portside people for kicking this in the a** … We’ve all been fighting for this,” said Councilman-at-Large Daniel Rivera.
“I just hope and pray we can enforce this. The issue is the enforcement … He (Richardson) expressed his concern about his manpower … But this is good law,” noted Council President Joyce Watterman.
The governing body ultimately approved the local legislation unanimously (9-0).
The council then discussed an ordinance to clarify the scope of state level rent control exemptions.
“This ordinance has zero impact on Portside Towers. Both buildings have always been subject to rent control. This law helps every other tenant in Jersey City,” Weller said during his additional public comments.
“Total immunity: That’s nonsense, this ordinance makes it clear.”
He noted that landlords claim they have many exemptions from rent control laws and that is not always true.
“State exemption (from rent control) are limited. For years, some landlords have been playing a shell game,” added Anna Medyukh.
“They act like they’re sovereign nation s… no accountability. They operate in complete darkness,” exclaimed Jessica Brann.
“The entire house of cards is about to crumble!” Hirsch exclaimed. “You can’t hide violations behind papers you never filed. They made a calculation that non-compliance was profitable,” stated Hirsch.
Solomon said the scope of exemptions is narrow and municipal rules were unclear, which is why he included a rental freeze component here.
“If a landlord violates the law in certain aspects, the enforcement mechanism is to freeze the rent. That’s an extremely important tool,” he explained.
Rivera wanted to apologize to Richardson, stating he’s been doing his best during difficult circumstances.
“We put him through the grinder. I apologize because his name was kind of dragged around a lot. It is a great victory for you guys,” he said.
Watterman said she appreciated the Portside activists and joked they’re expected at meetings now. She also wanted to thank Chief Municipal Prosecutor Jake Hudnut and Richardson for weighing in on the legislation at caucus.
“They came because I asked them to come… to give the people some clarity … Sometimes the law and the system doesn’t work for their benefit … If you bring us a good idea, we will definitely try to implement it,” Watterman added before voting yes to applause.
The measure was also approved unanimously (9-0).
City Clerk Sean Gallagher then noted that the council resolved to reintroduce an ordinance at 3.5 similar to ordinance 4.5 on imposing mandatory minimum fines for negligent landlords. Therefore, no hearing was held and it was voted down 9-0.
During the public comment period, Weller endorsed the measure that was brought back to first reading.
