Listen to this article

Hoboken will hold a vote Monday evening that will help guide the future of rent control in the Mile Square City.

Scheduled for Aug. 5 at 7 p.m., the special City County meeting will take place via Zoom. During the meeting, the group will decide whether to adopt a compromise ordinance on the matter. Otherwise, voters will take part in a referendum during November’s presidential election.

The public question would amend the current ordinance to provide property owners the opportunity to decontrol certain units in exchange for a one-time fee.

Under current law, when a tenant who has occupied a unit for at least three years voluntarily moves out of a rent-controlled apartment, a landlord or owner can then apply for an increase in monthly rent of up to 25% for the next occupant. Over time, the proposed change would allow all rent-controlled units to convert to market rate upon vacancy for a one-time, $2,500 payment.

Hoboken Mayor Ravi Bhalla issued an Aug. 2 call to residents to provide feedback.

According to that message, proposed amendments would require landlords seeking permission to increase rents to notify the city and pay a fee of either $100 (currently registered units) or $3,500 (unregistered units).

Next steps would adhere to a set schedule permitting landlords:

• A 25% increase upon vacancy of a unit that was occupied by the same tenant(s) for two years or longer
  • Accompanied by a fee of $500
• A 50% increase upon vacancy of a unit that was occupied by the same tenant(s) for five years or greater
  • Accompanied by a fee of $1,000
• A 100% increase – or up to $1,750 – upon vacancy of a unit that was occupied by the same tenant(s) for 10 years or greater, at the choice of the landlord
  • Accompanied by a fee of $2,000

The full ordinance and amendments are available here.

Opposing sides

Mile Square Taxpayers Association led the call for the referendum, delivering more than 2,100 signatures to the city in support in the spring, as well as calling for a compromise. Following that, another group has come out in opposition to the plan. The Hudson County Democratic Socialists of America has characterized both the compromise and ballot measures as “catastrophic” for tenants.

“People will be at the polls for the Presidential election in November and we trust the people of Hoboken, we ask that City Council trusts them too,” Hudson County DSA said in an Aug. 5 statement.

Ahead of Monday’s meeting, MTSA Executive Director Ron Simoncini reached out all to city council members in an Aug. 2 letter shared with NJBIZ.

“The operative facts right now are that MSTA was approached by the City Council to consider withdrawal of its Referendum Petition if the Council were to adopt certain reforms of the rent control ordinance that would continue all current tenant protections and allow property owners to marginally increase the rents above currently allowed amounts on vacancy,” Simoncini wrote.

“The Petitioners entered sincere negotiations with Council President [Jennifer] Giattino and Members [James] Doyle, [Emily] Jabbour and [Tiffanie] Fisher, each of whom contributed to the ultimate set of provisions that were agreed to,” added Simoncini, also president of marketing and PR firm Axiom Communications. “There was a first reading that passed 8-0.”

Rising rents

“Our current effort to fight Ron Simoncini and Miles Square Taxpayers Association’s initiative to undermine rent control protections in Hoboken is led by our Hoboken members and other Hoboken residents who want to see a future for their city that isn’t restricted to the very rich,” Hudson County DSA said in an Aug. 5 statement.

According to Apartments.com, the average monthly rent in Hoboken as of August 2024 is $3,594 for a one-bedroom unit. That figure is up 2.4% over last year, according to the online apartment listing website. The city is one of the most expensive nationwide, with monthly average rents 134% higher than the rest of the U.S.

The group added, “By passing their ‘compromise,’ City Council would be telling these people that in order to start a family, in order to get married or split up, they will need to look for housing elsewhere and leave the unit they’re currently occupying open to decontrol and inaccessibility to anyone but the wealthy.”

The statement also called attention to potential larger implications for rent control across the state.