Hoboken Considers One-Time Rent Control Increase, And Injunction Against Luxury Rent Hikes

HOBOKEN, NJ — How high can a landlord raise rents after a tenant has gotten settled in their unit?

Two laws govern rent hikes in Hoboken: one mostly for older buildings, and a state law that applies to all buildings.

The city has been attempting to deal with a range of thorny rent issues in recent months, as Hoboken rents have risen to become among the highest in the nation.

Families have said they're not sure they can afford to stay in buildings that have attempted to raise rents $1,000 per month or more. READ MORE: 2 More Landlords Get Letters About 30 Percent Rent Hikes

Meanwhile, the City Council planned to vote Wednesday night (May 3) on a measure allowing a one-time increase for rent controlled units whose rent was decreased during the COVID pandemic. However, they delayed the vote to meet in committee and discuss the matter further. You can watch the meeting here.

In other rent news, sources say, the city is considering filing a legal "test case" to determine the limits of rent increases in non-rent controlled buildings (including luxury complexes), as the state's nebulous law says increases cannot be "unconscionable or unreasonable" — but doesn't give a number.

What percent would meet that standard — 25 percent? What if it was 15 percent for two years in a row? These are questions that tenants in many towns, including Hoboken, have been asking.

In the past, tenant advocates have said that legal precedent has put the number around 25 percent, but many would like to see a clarification, as the present situation forces tenants to fight in court, while worrying about eviction.

Two Laws Govern Rent Increases

Right now, two laws govern rents in Hoboken, but tenants are often unaware of them, and local tenant advocates have gotten numerous questions lately from renters who've been given rent increases outside the law, or threatened with eviction/non-renewal because a new landlord has bought their building.

(For the record, tenants can't be evicted simply because of a change in ownership, whether their lease is month-to-month or annual. READ MORE: Hoboken Tenants Fear Displacement)

Many buildings constructed before 1990 fall under the Hoboken Rent Control Ordinance, which currently limits annual increases to 5 percent, but allows landlords to pass along certain surcharges and to get a vacancy decontrol when a tenant leaves.

Some newer buildings also fall under rent control if they didn't apply for a 30-year state exemption before they were built, including the luxury Avalon Hoboken, according to City Hall. The Rivington also falls under the law (read more about that here).

For units that don't fall under municipal rent control, New Jersey has a law saying increases cannot be "unconscionable or unreasonable." The Housing and Community Development Network of New Jersey said in February that the state should strengthen protections for renters because of a wave of "unconscionable" rents.

City May Sue And Request Injunction On Some Hikes

Sources say the city is considering a legal "test case" on behalf of tenants in a luxury building, to determine what type of rent increase would qualify as unconscionable.

As part of the filing, sources say, the city may ask a Hudson County Superior Court judge for an injunction so that the landlords in question cannot ask for increases while it's litigated.

While the city has recently sent letters to luxury building owners — including AvalonBay and Lincoln Properties — about increases of 25 percent or more, tenants say they are still being told to pay increases they believe are unreasonable, and aren't sure what to do next.

An investigative series by ProPublica last year found that some large landlords were relying on real estate software — rather than the local market or local laws — to set rent increases, giving tenants little choice but to select from among buildings with similarly spiking rents.

The State Law In Black And White

For now, New Jersey law states:

Three People Splitting Three Bedrooms

Other towns in the New York metro area are weighing how to handle rents that are becoming unaffordable to longtime residents.

Recently, tenants in a building in Montclair argued that their rent increases are "unconscionable," in one case 37 percent.

Across the river in New York City, the Rent Control Board voted on Tuesday to introduce increases up to 7 percent on rent-stabilized apartments, sparking protests. The matter is up for a final vote in June.

At the same time, social media posts show how young people split the rents to make Hoboken apartments more affordable.

In a Twitter post Tuesday, a man living in a three-bedroom apartment — a type often coveted by growing families in the mile-square city — wrote, "I'm moving out of my apartment in Hoboken and my roommates are looking for someone to take one of the open rooms, rent would be around 1,400 plus electric." When told by another user that it's a high amount for Hoboken, he responded, "Landlords jacked up the rent that's why I'm moving."

On Wednesday's Council Agenda

The City Council initially planned to vote to introduce a one-time increase on some rent controlled apartments Wednesday, an ordinance that includes other provisions.

Local tenant activist Cheryl Fallick had complained about a provision that had penalized tenants, but that section was removed, Councilman Jim Doyle said at Wednesday's meeting.

Ultimately, the council delayed a vote.

Council President Emily Jabbour said at the very end of Wednesday's meeting that more than one council member asked for further discussion on the matter.

The name of the newest ordinance was, "ORDINANCE AMENDING HOBOKEN CITY CODE CHAPTER 155 'RENT CONTROL' AT VARIOUS SECTIONS TO CLARIFY CERTAIN NOTICE REQUIREMENTS AND SET FORTH AN ALLOWABLE INCREASE FOR RENTS DECREASED DURING THE COVID-19 PANDEMIC (COUNCILMAN COHEN,COUNCIL MEMBER DOYLE)."

How To Get Help

Confused about rent laws? For decades, the city has had a free tenant attorney to help, who you can contact here.

Northeast New Jersey Legal Services also provides legal counsel regarding tenant law and many other legal matters, including family law. Find out more about them here.

Read numerous stories about the recent rent issues on Hoboken Patch.

• To see a video of Wednesday's council meeting, watch on the city's Facebook page, or watch on YouTube.
• See the agenda and the packet of documents that go with the agenda here.