Rivington Rent Hikes To Be Lowered After Hoboken Says Apartments Fall Under Rent Control

HOBOKEN, NJ — Score one for the tenants of Hoboken.

Two weeks after Patch ran a story about the Rivington apartment complex telling tenants their rents would be raised 20 to 30 percent or more — hikes that were possibly unlawful since the building was unable to prove it's exempt from local rent control — the city said in a letter Thursday that the increases will be reduced.

In addition, tenants may get credit for overpayments since Jan. 1, and the building is subject to rent control, said a letter dated Thursday from Mayor Ravi Bhalla (see letter below).

While this may be small consolation to tenants who moved out last year because of the possible increases, those who stayed to fight said they're relieved.

The saga began late last year when some tenants of the luxury complex on Grand Street — already paying $2,800 or more for two-bedroom units — were faced with increases of 20 or sometimes 30 percent. State law says rent increases must be "conscionable" without being specific, but Hoboken's Rent Control Ordinance is more specific, limiting annual increases to the Cost of Living Adjustment, usually 2-8 percent.

Not all buildings fall under rent control. Currently, the law applies to many buildings constructed before 1992. That's because newly constructed buildings in the last four decades had the option of signing a 30-year exemption when they were built.

The Rivington was built in 1999, but has not been able to find its original exemption, sources said.

When Rivington tenants got increases they thought were too high, they went to the city for a legal rent calculation, then went back to the landlords with new information. Many were offered a reduction in their increase, but were told if they didn't agree to the new offer, they might have to pay $5,200 month to month.

Some tenants contacted Patch saying the increases were still too high and possibly unlawful, and they weren't sure what to do next. One mother, who has two kids in a nearby public school, said she feared she might have to move out.

The Rivington also told tenants that the tenants had individually signed an exemption from local rent control. But this addendum left Hoboken out of the second paragraph:

The Update

This week, the city sent Rivington tenants a letter dated Thursday, calling some of the proposed increases "egregiously high":

Several sources said that the current owners of the complex, Equity Residential, have been searching for the exemption that the original owners may have signed when the complex was built in 1999.

Also by law, local landlords whose buildings are exempt from rent control must have tenants sign a document stating they're aware of this exemption.

Two weeks ago, Marty McKenna, first vice president of investor and public relations at Equity Residential, told Patch,"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. 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."

Other Buildings?

Since the original Patch story ran two weeks ago, tenants of two other luxury buildings in town contacted Patch to say they are not sure their recent rent increases are valid, and that their buildings may be dealing with the same issue as the Rivington. (READ MORE: Hoboken Tenants' Increases May Be 3x Legal Rent)

Because of Hoboken's dark history of tenants being pushed out of buildings during gentrification, the city has a lawyer whom tenants and landlords can contact for free if they are not sure of the laws about rent increases, evictions, tenant and landlord rights, and more.

Tenants can also contact the city's rent control board to find out their legal rent and whether their building is subject to rent control/stabilization.

The city is currently considering further limiting increases on buildings that are subject to rent control (read more here).

However, a taxpayers' organization has noted that some rents were artificially low during the pandemic, hence the need to increase rents more than the normal limits.

Patch will continue following this story.

What do you think? Comment below or contact Patch here.