Rent Control Controversies In Hudson County Get National Attention

HUDSON COUNTY, NJ — National equity firms have been buying buildings in Hoboken and Jersey City over the last few years that were once owned by smaller landlords — and failing to follow local rent control guidelines. And now the Wall Street Journal has followed up on an issue first reported by Patch last month.

Monday morning, the WSJ followed up on the issue of the Portside luxury waterfront towers in Jersey City — one of which was determined recently to be under the city's rent control laws, as Patch reported in October.

Tenants complained this year that they were being hit with rent increases up to 40 percent, much higher than the single-digit percents typically allowed by local laws. Similar circumstances were reported earlier this year in a Hoboken building owned by the same firm that owns Portside, Equity Residential.

This year, tenants in Portside and another Equity building in Jersey City have also complained about maintenance problems, including elevators trapping people inside.

In the story on Monday, the Wall Street Journal reported that the Jersey City Fire Department responded to the elevators at Portside Towers 10 times from April to September 2022 to attend to people who were stuck.

They wrote, "Equity Residential’s spokesman said the company recently overhauled the buildings’ elevators and 'are working out some continuing malfunctions.' "

Feeling Stuck?

Issues with rent hikes are becoming more serious in Hudson County and nationally, as some tenants say that they can't afford moving costs and may not be able to pass a credit check or the application process in a new building.

A study done this summer said Jersey City has the highest rents in the nation, and Hoboken came in at seventh.

One New Jersey advocate said this year she's bracing for a "tidal wave" of evictions and homelessness as rents rise.

In New Jersey, state law says rent increases cannot be "unconscionable," but fails to spell out a limit. Tenant advocates say that case law suggests that an increase of 25 percent or more might not hold up in court — but that means a tenant needs resources to fight.

Towns in New Jersey have adopted their own rent stabilization laws to prevent unexpectedly high increases. Still, tenants have had to gather resources to head to court. (One longtime Hoboken tenant had to do so recently: READ MORE: Hoboken Rent Control Case Could Set Troubling Precedent.)

Firms such as Equity Residential — which owns several buildings in Hoboken and Jersey City — have been cited for increases beyond what local laws allow. In spring it was reported that Equity lost a $2 million suit from the Washington, D.C. Attorney General's Office over rent increases in that city.

In both Hoboken and now Jersey City, Equity has had to roll back some proposed rents. READ MORE: Hoboken Rivington Landlord Told To Roll Back Rents

Free Resources

Rent control usually applies to buildings constructed more than 30 years ago, and there are other stipulations.

Hoboken and Jersey City offer free services for those who want to understand their rights, find out their legal rent, or fight an increase.

The city of Hoboken has a tenant advocate lawyer, as well as the Rent Stabilization Board, and local advocates who have volunteered for decades, such as the Hoboken Fair Housing Association. See this story for links to these options.

"Simply file a Legal Rent Calculation Request," wrote one commenter on Reddit in August, when a Hoboken tenant said they were hit with an almost-40 percent increase. "They are already
trying to jack your rent by 40 percent — what do you have to lose?"

Jersey City has resources to find out the legal rent on this page.

And for anyone in Hudson County, a nonprofit called the Waterfront Project offers free legal help regarding housing and various other matters. Contact them here.

See Patch's previous reporting on Hoboken and Jersey City rent control issues here:

• Portside In Jersey City Is Determined To Be Rent Controlled
• Hoboken Rivington Landlord Told To Roll Back Rents
• Hoboken and Jersey City Rents Are Highest In Country. Are They Legal?
  
• Tenants Of Hoboken Luxury Buildings Learn Rents May Be 3X Legal Rate