A group in Hoboken is hoping to trigger a special election this November in response to the city’s recently updated rent control ordinance.

This week, the Mile Square Taxpayers Association said it delivered more than 2,100 signatures to the Hoboken City clerk for certification to prompt the referendum. According to the group, the number exceeds the 1,342 signatures necessary to instigate the special election. The clerk has 20 days to certify signatures on the petitions.

Last February, the Hoboken City Council voted 5 to 4 to update the city’s longstanding rent control ordinance. The controversial move came at the objection of both landlords and renters, as reported by TapInto Hoboken.

The city council passed amendments to clarify the ordinance in March. Mayor Ravi Bhalla subsequently vetoed those changes in April.

The mayor expressed concerns the amendments would “have the effect of gradually eliminating rent control in Hoboken within the next 10 years, or sooner,” Bhalla reportedly said in his veto statement.

The Mile Square Taxpayers Association announced its support for a public question to amend the current ordinance in March.

The proposed change would give property owners the additional option to pay a $2,500 fee to Hoboken’s Affordable Housing Trust Fund. That money would exclusively be used to build new, affordable housing units in the city. Making the payment would then enable property owners to negotiate rents freely for new tenants at voluntarily vacated apartments. After that, the unit is subject to all existing Hoboken Rent Control Ordinance provisions.

A hostile environment

“Hoboken’s current Rent Control regime – from a convoluted Ordinance to a runaway Rent Leveling Board with an understaffed office – has been a disaster for years and it is only getting worse,” said Ron Simoncini, executive director, Mile Square Taxpayers Association. “It’s also a source of extreme frustration for people who need affordable housing and are told the rent control ordinance will provide it, only to find that even underpriced apartments do not go to people who need subsidies, they just give discounts to people who don’t seek or need them.”

According to Apartments.com, Hoboken is one of the most expensive cities in the U.S. for renters. As of May 2024, the average monthly rent ($3,616) was 139% higher than the national figure.

Simoncini suggested the proposed amendment would provide a dedicated revenue source for Hoboken’s affordable housing trust. “[It] also provides much needed tax relief to Hoboken’s residents,” he added. “There is no reason a person who makes $100,000 or more a year should be living in a rent-controlled, taxpayer-subsidized apartment AND at the same time impose rent control on condominium owners whose apartment values are compromised because they fall under rent control.”

Apartments.com recommends an annual salary of $144,636 per year to afford renting in Hoboken, without monthly bills and other expenses.

According to Simoncini, rent-controlled apartments in Hoboken dropped from about 12,000 units to 8,000 units over the past two decades. “[A]nd that trend will continue through condo-conversion and other means, taking units off the market,” he said. “The rent-control environment is too hostile for property owners – they’re selling and leaving.”

If the council and petitioners can compromise ahead of time, an amendment could stave off the referendum.

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