Hoboken Rent Increases Are Driving Tenants Up A Wall

HOBOKEN, NJ — As the average rent in Hoboken squeaks past $3,700 (according to RentCafe), some residents say their landlords have demanded annual increases of 20 percent or higher, an amount they believe may not be "conscionable" under a state law saying increases have to be reasonable.

And such increases may run afoul of the city's longstanding 1973 Rent Control Ordinance.

Chris S., a tenant of the Rivington apartment complex on Grand Street in Hoboken, said that over the last few months, he saw more neighbors moving out than usual. "I stopped every single one of them," he said. "They said, 'I got a 30 percent increase. I've got to go.' "

Chris said, "I love living in Hoboken [but] I don't have millions of dollars in a bank account."

The costs of picking up and moving can be high. Chris, who works in sales, said the building originally wanted to increase his rent from $3,390 to $4,083 per month, a rise of more than 20 percent.

After he challenged the increase, the landlords came down to $3,770, he said. He presented correspondence to Patch in which he offered to pay $3,600 per month, but the landlords responded,"The $3,770 is the best and final offer that we can give you. If you wish to go on a month to month basis, your monthly rent will be $5,307."

The year before that, his rent has climbed from $3,251 to $3,390, he said.

Many buildings in Hoboken, especially those older than 30 years, are subject to the city's 1973 Rent Control Ordinance.

It limits annual increases to the Cost of Living Increase set by the federal government, usually 2-7.5 percent each year, with some exceptions.

The Hoboken City Council voted last month to introduce proposed changes to further limit increases during inflation. Those changes include limiting the allowed rent increase to 4 percent this year rather than the cost of living increase.

One landlord group, the Mile Square Taxpayers' Association, is fighting the proposed changes, which haven't come up for a final council vote yet.

"The shock to the market from the pandemic caused rents to plummet, and in many instances, rents are just getting back to their 2019 levels," said Ron Simoncini, the executive director of the MSTA, this week. "Inflation, especially increasing salaries and fuel costs, [is] causing rental increases across the country."

Two tenants of the Rivington said that while their building is not more than 30 years old, they have been told the building may be subject to rent control for various legal reasons.

A mother with two kids in the public schools said Wednesday that the Rivington tried to increase her rent from $3,009 to $4,028 starting this coming September — an increase of around 34 percent.

She said that she was offered a month-to-month amount of around $5,200 if she doesn't agree to an annual increase. She did say that the landlords came down when she asked for a compromise, but that it wasn't enough.

And then, she decided to reach out to the city last month. The city sent the Rivington a letter — obtained by Patch — saying her rent should actually be $2,830 under city law, based on the amount she was paying when she moved in.

The mom is still paying the $3,009 per month while she waits for a resolution, she said.

She said a lawyer advised her not to pay an increase come September, but this makes her nervous.

"My two kids are enrolled in [public] school here," she said. "I don't want to live in fear of the [landlords] hurting my credit score. And I don't want to live month to month. Who wants to live like that? People want to feel secure. They want to have a lease."

"It really feels like they're trying to strong-arm the situation," she added. "I really feel they think that I'll give up and move out so they can raise the rent to whatever they wish. It's intimidating. I do stress about it...they're trying to make Hoboken a family friendly town, but how can it stay family friendly?"

Under rent control, landlords get a "vacancy decontrol" exemption allowing them to raise rents by 25 percent every three years, if a tenant voluntarily moves out. (The city is considering changing it to 10 percent and five years.)

The Rivington responded to questions from Patch on Wednesday by acknowledging that they are attempting to clarify the rent control situation.

"In response to your inquiry, The Rivington has been, since its construction in 1999, operated as exempt from the city of Hoboken's rent control ordinance," wrote Marty McKenna, first vice president of investor and public relations at Equity Residential, in a statement. "The building was originally constructed in reliance upon the rent control exemption created by New Jersey state law which was intended to incentivize development of projects, like The Rivington, in areas which had previously suffered from a lack of new housing supply. We are currently working through the legal process to clarify this situation."

But tenants say the landlords are still asking them to agree to higher rents in the meantime, and offering steeper month-to-month rents of $5,200 or more as the alternative.

The city of Hoboken, in its letter to Equity Residential, said the company can appeal the determination to the city, which is what they are doing.

But what should tenants do for now?

Chris said, "Nothing has gone up 20 percent, not my cell phone bill, car insurance, my salary...it's inexcusable. There's absolutely no basis for it."

The mother of two said that there seemed to be inconsistencies among the rents that various tenants have been offered when they challenge the increases, and that it's "without rhyme or reason."

The city did not return a request for comment by this writing, but the story will be updated when they do.

Dark History

Hoboken has a longstanding (and dark) history of tenants being forced out of town and even burned out of their buildings in suspicious fires in the 1970s and 1980s as the city became more desirable to young Manhattan commuters.

A 1992 documentary about displacement in Hoboken during gentrification, "Delivered Vacant," is often shown at the Hoboken Historical Museum. The title refers to landlords pushing tenants out so they can sell their buildings empty to investors.

These days, the city retains a "tenant advocate" lawyer who, free of charge, can help both landlords and tenants navigate local and state laws regarding rent increases and leases. Find out more here.

Landlords can only evict tenants in New Jersey for specific reasons, under state law.

Read more about recent proposed changes to Hoboken's rent laws here.

Update

UPDATE: After the above story ran, more tenants of luxury buildings in Hoboken discovered their complexes may be rent controlled, and Rivington tenants got some relief. READ MORE: Tenants In Hoboken Luxury Complexes Learn Their Buildings May Be Subject To Rent Control

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