Hoboken To Vote On Law Limiting 'Unconscionable' Rent Increases

HOBOKEN, NJ – In the last few years, some corporate landlords in Hoboken have raised the rents of longtime tenants by 25 percent or more. The state bans "unconscionable" rent increases, but leaves it up to a tenant to withhold rent, get an eviction notice, and plead the case to a judge — creating an uncomfortable situation between them and the person who has the keys to their household.

For many older units in Hoboken, the city already has Rent Control laws to limit increases to the cost of living increase, allowing some exceptions for landlords. Many units in town are exempt, including newer complexes that have risen over the last 30 years, and units originally built under special programs.

Thus, a tenant may be left to choose between fighting a 25 percent increase in court, or paying moving costs and searching for an apartment in an area where few affordable units are available.

Two Hoboken council members have proposed an ordinance to limit rent increases on units not under rent control, imposing a cap of 10 percent, with various exceptions. The matter goes to a final vote and hearing before Hoboken's council on Wednesday.

Ten Units Or More

The new proposal applies to buildings with 10 or more units. And as with the Rent Control Ordinance, there are exceptions if a landlord can show why a larger increase is needed, and for buildings already covered by Rent Control or currently owned and operated by the government.

The measure can be read here.

"S1ate law currently states that 'unconscionable rent increases' are prohibited, but it does not define what that means, resulting in the need for a tenant to pursue legal action to challenge exorbitant rent increases such as those that Hoboken renters have experienced in the last several years," said Councilwoman Emily Jabbour in her newsletter on Tuesday. "I proposed this change to protect Hoboken renters against exorbitant rent increases that make Hoboken unaffordable."

Jabbour co-sponsored the ordinance with Councilman Joe Quintero. Both are allied with Mayor Ravi Bhalla.

Some Opposition

But Councilman Paul Presinzano, who in the past two years helped tenants at Marine View Plaza fight increases of just under 10 percent, has been reluctant to endorse the new legislation, for a number of reasons.

In a newsletter sent to constituents on Tuesday, he wrote, "There is an ordinance up for a vote to define 'unconscionable rent increase' for non-rent-controlled units in buildings with 10 or more units. From my research, this is typically governed by state and contract law. Defining this locally could expose Hoboken to potential litigation. At the last meeting, I asked our Corporation Counsel for a legal opinion, and their response suggested this could likely lead to a legal battle. Stay tuned."

Presinzano was asked Tuesday whether he's referring to the state law that requires a tenant to fight eviction in court, and how the legislation would be different from helping Marine View Tenants.

"I'm not a lawyer," he said, "but in my experience, you're going to a judge...even though it might be vague, my understanding is that state law supersedes any municipal law.”

He said his bigger concern is about Hoboken battling more lawsuits.

"My concern is that I've got to watch the taxpayers' dollars," he said. "I asked the [city attorney] and their answer led me to believe, it was kind of vague, but it's something where we could end up in court. That's not in the best interest of the taxpayers of Hoboken. It's not about the merit of the ordinance. We seem to have a problem in this town where litigation ends up in our laps with everything we do."

He said perhaps the state law about unconscionability is "purposely left vague" so it can be dealt with by a tenant and landlord before a judge.

In recent years, Mayor Bhalla has fired off angry letters to several corporate landlords who ignored rent control laws or levied increases of 20 percent or more on their tenants. But those landlords are suing Hoboken, in turn.

Higher Increases Than In New York

In Hudson County, the popularity of the area has caused rents to rise sharply in the last few years, causing some tenants to face increases they were not expecting. The median rents in Jersey City and Hoboken have risen to more than $4,000 per month — among the highest in the nation.

One study said that out of all the towns in the New York City metro area, Hoboken had the highest year-to-year median rent increase. READ MORE: Hoboken Had Highest Rent Increases Of All Cities In NY And NJ: Study

Jersey City recently passed a law to provide the right to counsel to tenants facing eviction.

Watch In Person Or Online

You can see the meeting on Wednesday in person at City Hall, 94 Washington St. Or you can watch live on Facebook or the city's YouTube page.

The Facebook link is here; YouTube here.

You can also see the agendas and packets here.

Have an opinion on Hoboken issues? You can post your letter free on Patch using these instructions.

Related Information

New Jersey has various laws on the books to prevent renters from ending up homeless or destitute. One law says that landlords must have "good cause for eviction" in most circumstances. Landlords can only fail to renew a lease if the tenant breaks rules, fails to pay rent for several months, or for certain other listed reasons. (Read more about that here.)

The state also says that rent increases must be reasonable and "conscionable," regardless of the type of rented unit. Read more about that here.

Read more about what various towns are doing to protect tenants from eviction here.

Want help? Hoboken has a tenant advocate who can help tenants deal with thorny issues and answer landlord questions. Find out more here.

Various nonprofit tenant advocacy groups in North Jersey will help renters and landlords understand the laws, and fight unfair evictions and increases. The New Jersey Tenant's Organization based in Fort Lee, Waterfront Project in Jersey City, and tenant activists in several towns can help. The state also provides some programs here.

Links To NJ Rent And Eviction Laws

• New Jersey Grounds For Eviction Laws
• New Jersey Rent Increase Laws