Hoboken Landlords Abusing ‘Loophole’ To Raise Rents: Mayor

HOBOKEN, NJ — It’s a major loophole being abused by landlords to raise tenant rents by hundreds of dollars, Hoboken Mayor Ravinder Bhalla says. And he wants it closed, ASAP.

On Wednesday, ahead of the City Council meeting slated for that evening, Bhalla announced that he is “strongly advocating” for an amendment to Hoboken’s Rent Control Ordinance. According to a statement from the mayor:

“The loophole permitting this unconscionable practice is the ability to apply for a property tax surcharge using 1988 as the base year. The amendment will change the base year to 2014, minimizing the possible surcharge increase for renters, and also prohibit any surcharge from being implemented in the middle of a term of a lease.”

The ordinance will go through a first reading on Wednesday, June 6. The second reading for potential passage of the law is scheduled for Wednesday, June 20.

“I have had tenants with tears in their eyes, in fear of displacement, handing me property tax surcharge calculations that will make living in Hoboken unaffordable,” Bhalla said. “The purpose of rent control is to protect tenants. Period. I urge the City Council to advance this purpose by closing this loophole without further delays.”

The municipal rent control law – adopted in 1988 – also requires real estate developers to devote 10 percent of their multi-family units to low and moderate-income housing.

• See related article: Hoboken's Affordable Housing Ordinance Will Endure

Affordable housing – whether it’s buying or renting – is an important issue for a city that sees some of the highest-priced real estate offerings in the North Jersey area.

• See related article: Hoboken Condo Is 'Most Expensive' Ever Sold In NJ: Report
• See related article: Rent Eli Manning's $5.2M Condo In Hoboken, NJ: PHOTOS

In 2016, the Hudson Reporter stated that 858 people were on the waiting list for affordable housing in Hoboken, some of whom were waiting for up to five years for a unit to become available.

In 2010, a disabled Hoboken municipal worker told Patch about his issues finding affordable housing in the Mile Square City.

• See related article: Disabled Hoboken Resident Stuck in Hunt for Housing

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