Tenants File $400M Federal Lawsuit Against Corporate Landlord In Hudson County

JERSEY CITY, NJ — A group of tenants in Jersey City who've been fighting to get their rents lowered for two years has filed a $400 million class action lawsuit against their corporate landlord in U.S. District Court.

The tenants of Portside Towers East and West, who believe their buildings should be subject to Jersey City's rent control laws, have been fighting to lower rents they say have risen as much as 25 percent or more.

They filed the suit against Equity Residential on Tuesday, July 2, according to the court documents (see the lawsuit below).

The city of Jersey City issued a ruling in 2022 saying that Portside West was subject to local rent control, and in 2023 they decided that Portside East was subject to rent control too. But tenants say they are still being issued steep increases.

Last November, Equity filed a lawsuit against Jersey City in federal court over its enforcement 0f rent control. READ MORE: 3 Corporate Landlords Sue Hoboken And Jersey City Over Rent Control Rulings

The matter is part of a larger issue currently occurring in both Hoboken and Jersey City in which landlords, buoyed by a hot real estate market, are raising rents by unexpected amounts, such as 25 percent in one year. The rents in both North Jersey cities have become among the highest in the nation.

However, both state and local laws come into play.

Many older buildings in Jersey City and Hoboken are already subject to the towns' individual rent control laws. Newer buildings may be exempt if they can prove that they applied for a state exemption from before they were built — and as long as they notified tenants of the exemption in the initial lease. But some corporate landlords who bought buildings in Hudson County have had trouble proving they've satisfied these conditions.

In addition, the state of New Jersey has a law applying to all rentals saying that rent increases cannot be "unreasonable or unconscionable." The law leaves the amount vague, forcing tenants and landlords to wind up tussling in court if they want a ruling.

Michele Hirsch, the president of the Portside Towers West Tenant Association in Jersey City, said Tuesday, "This class action lawsuit is our chance to finally hold our landlord accountable. By coming together in this class action, we're sending a clear message that tenants' rights cannot be ignored."

Kevin Weller, president of the Portside East Tenants Association, recently told Patch that his rent was $4,534 two years ago, and he just got a notice that it will be raised to $7,011 per month.

On Tuesday, Weller said, "Equity continued to increase rents, stating they didn't agree with the binding [Jersey City] board determination, to which there is no stay in any court. We invite other tenants facing similar situations to reach out to us at RentControlJC@gmail.com. Together, we can fight for our rights and ensure that rent control laws are enforced."

He noted that tenants in other towns, such as Hoboken, can potentially join the class action suit if they were subject to unfair rents.

Under New Jersey's Consumer Fraud Act, tenants who were paying rents higher than what's allowed can try to win triple damages in court. Weller noted that this was among the considerations in determining the damages amount.

Patch has written dozens of recent articles on the recent rent controversies in Jersey City and Hoboken. Read more:

• READ MORE: Hoboken Drops 'Test Case' To Protect Tenants From 'Unconscionable' Rent Increases
• READ MORE: Jersey City Takes Aim At Landlords Using Rent-Setting Software
• READ MORE: Delivered Vacant? Local Tenants Fear Displacement