The Jersey City Council voted down the second reading of an ordinance to amend the rent control ordinance to include owners with five or more units, among other things, at last night’s meeting.
By Daniel Ulloa/Hudson County View
Several landlords with fewer than five units who likely would not have been affected still opposed the measure before Portside Towers Tenant Association East President Kevin Weller said while well intentioned, the measure would not work as planned.
“I support the intent of this ordinance, stopping institutional investors from masquerading as small landlords by fracturing their portfolios and LLCs is critical,” he began.
However, Weller said there were loopholes in the ordinance that large developers could exploit by hiding their ownership in different ways.
He added that they offered amendments to strengthen the ordinance by closing different potential ownership loopholes, which were not adopted.
“We’re handing you the blueprint to fix this … Let’s pass it to stop the bleeding,” he added.
Jersey City Property Owners Association Executive Director Ron Simoncini was against the measure despite the fact it probably would not effect his membership, which is mostly large landlords.
“It doesn’t fix anything … This has to stop,” Simoncini declared.
He claimed it would further hurt small business owners who have been harmed by large corporations and property tax increases.
“I oppose this ordinance. I’m a small landlord. I own two buildings: How is that even fair? We barely get by. It puts owners under rent control, not properties. How does that work?” Melissa McCarthy asked.
Furthermore, Abe Hedaya said he is a small businessman investing in housing in Greenville and was also against the local legislation.
“How did I become the bad guy? he asked later claiming that all of his units are very reasonably prices.
“This closes one of the biggest loopholes corporate landlords have been exploiting,” Anna Medyukh asserted.
She said institutional investors have purchased a significant percentage of one- and two-family homes in the city, citing a recent study.
“What this affects is landlords who rely on loopholes, not community,” Medyukh argued.
Another Portside Towers resident, Jessica Brann, liked that the ordinance would close a loophole where large landlords pretend to be smaller landlords.
“We are essentially putting up a fence with some planks missing. However, I will say vote yes tonight,” she said before the council began to weigh in.
Ward A Councilwoman Denise Ridley said the current version of the ordinance has too many issues that had to be addressed.
“… Even those who asked us to vote for it says this needs work … I don’t think it’s ready. I do think it is going to adversely impact small homeowners,” she explained.
” … On the southern end of the city, a lot of homeowners can’t get market-rate rents … I do believe we need to find a way to protect our renters.”
Ward B Councilwoman Maureen Hulings said many small landlords have reached out about this ordinance and have been wholeheartedly against it.
“I agree this is not ready to be passed, so I’m going to vote no,” she declared.
Ward D Councilman Yousef Saleh acknowledged that it needed work, but said he was voting aye because it’s a step in the right direction.
“I think it presents an unintended consequence. We do not have the capacity to police this … We don’t have control over the rent-controlled apartments that are actually rent-controlled right now,” stated Ward F Councilman Frank “Educational” Gilmore.
“I do believe we have to make a good faith attempt to address these greedy landlords … They essentially can do what they please. It gives us a band aid … to stop some of the bleeding … It needs a lot more work.”
Councilwoman-at-Large Amy DeGise said it would lead to more homeowners selling their homes to those building small condo buildings on their properties.
“This would be the nail in the coffin for them … There needs to be more work done, so I vote no.”
Council President Joyce Watterman, who sponsored the measure, said she still felt this was the best approach to get the ball rolling.
“On the south side of the city, they are buying up one or more two-family homes … ordinance is not perfect, but it is a start … I know we have to try,” she said before voting yes.
It was defeated 3-3(2) with Gilmore, Saleh, and Watterman voting yes, Hulings, DeGise, and Councilman at-Large Danny River voting no, while Ridley and Ward C Councilman Rich Boggiano abstained.
Ward E Councilman James Solomon was absent.
