Potential Rent Control Referendum Upends Hoboken

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

This week, the Mile Square Taxpayers Association said it submitted more than 2,100 signatures to the Hoboken city clerk for certification to trigger the referendum. According to the group, the number exceeds the 1,342 signatures needed to trigger a special election. The clerk has 20 days to certify the petition signatures.

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

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

The mayor expressed concern that the amendments “would have the effect of phasing out rent control in Hoboken over the next 10 years or sooner,” Bhalla said in his veto statement.

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

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

A hostile environment

“Hoboken’s current rent control regime — from a convoluted ordinance to a runaway Rent Adjustment Board with an understaffed office — has been a disaster for years, and it’s 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 the low-cost apartments aren’t even for people who need subsidies, but only give discounts to those who “don’t look for or need them.”

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

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

Apartments.com recommends an annual salary of $144,636 per year to afford a rental in Hoboken, minus monthly bills and other expenses.

According to Simoncini, rent-controlled apartments in Hoboken have dropped from about 12,000 units to 8,000 units over the past two decades. “(A)nd this 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 sell and leave.”

If the council and petitioners can compromise early, an amendment could prevent the referendum.

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