Union To Testify About Rent Fixing Law In Trenton

JERSEY CITY, NJ — Jersey City has transformed in the last 15 years to a sought-after destination and foodie town, with rents among the highest in the nation. While some cheer the gifts of redevelopment, blue-collar workers say they can't afford to stay.

New Jersey has a law against "unconscionable" rent increases, and Jersey City also has rent control rules for older (and some newer) buildings. But not everyone complies.

This Thursday, according to a release from a local union, employees of New Jersey residential buildings will testify in Trenton about an ongoing issue: landlords allegedly using national algorithms to raise rents, rather than local supply and demand.

The U.S. Justice Department has been investigating corporate landlords' use of the alleged rent-fixing software, an issue that has implications both locally and nationally.

When landlords coordinate their rents, it means people living in a certain area have few alternatives if their rent rises — and must either leave an area or stay and pay unaffordable rents, critics say.

Locally, residents in both Jersey City and Hoboken have seen rents rise 20 percent or more in complexes that were purchased by corporations.

On Thursday, workers and residents "will offer testimony [in Trenton] to state lawmakers in support of A4872. If signed, the bill would be the first state-wide law in the U.S. to explicitly ban use of rent-fixing algorithms," said a Monday press release from the building service workers' union, 32BJ SEIU.

The New Jersey bill would make use of the algorithms a violation of state Antitrust Act.

The group noted in a release this week that corporate landlords and property managers with buildings in Hudson County have been named in the federal government lawsuit.

The city councils in both Jersey City and Hoboken have voted on resolutions to encourage lawmakers to ban price-fixing software, but they stopped short of trying to institute a ban themselves.

'Misdevelopment' Of Jersey City

Last month, the same building workers' union released a "white paper" they said addressed " 'The Misdevelopment of Jersey City' and racial and economic inequality."

The full paper can be found here.

The union listed the corporate developers that are building luxury complexes in the city, saying some groups have been left out.

"The workers who service these luxury buildings have been excluded from sharing the prosperity they contributed to," the paper says.

“I stand with the 1,500 residential workers in Jersey City—concierges, cleaners, and others—who work tirelessly to keep our buildings safe and clean," said Ward E Councilman James Solomon at a press conference announcing the paper. "These workers deserve to share in the prosperity they help create ... Luxury building owners benefit from tax breaks but often underpay workers and raise rents."

A spokesperson for the city of Jersey City did not respond to a request for comment on the rent issues, nor did KRE development, which was among the corporate landlords named in the white paper.

A local property owners' association, Mile Square Taxpayers, based in Hoboken, said, "We don’t have a position on the algorithms."

What's Next

Thursday's hearing is set to take place before the Assembly Housing Committee at 10 a.m., at the State House Annex in Trenton.

"These lawsuits could take years to resolve in court," said the union. "That is why workers and tenants are asking New Jersey to crack down on exploitative price-fixing now. A4872/S3699 would rein in powerful landlords, streamline enforcement of the NJ Antitrust Act, preserve judicial resources, and encourage compliance with the Act."

The law will make it unlawful for rental property owners to contract for the services of a company that coordinates rental housing prices, they said.

32BJ SEIU represents 15,000 building service workers in New Jersey, and a total of 185,000 service workers across 12 states.

What About Affordable Housing?

Meanwhile, waits for government-designated affordable housing in New Jersey are years long.

The state's latest round of affordable housing requirements, released Friday, says Jersey City must create 3,733 more units by 2035.

READ MORE: 3 Corporate Landlords Sue Hoboken And Jersey City