Another apartment building in New Jersey slipped into rent control as regulations in the state continue to frustrate landlords and tenants alike.
Hoboken’s Rent Leveling and Stabilization Board ruled Wednesday in favor of tenants at The Jordan, subjecting the property at 1200 Clinton Street to rent control, NJ.com reported. The building is managed by Lincoln Eastern Management Corporation, an arm of Lincoln Property Company.
Tenants at the luxury property argued that building management failed to inform tenants of their units’ exemption from rent control. New Jersey law requires landlords to inform incoming tenants of exemptions in writing prior to leasing a unit to them.
The issue came to light after tenant Zach Gotlib was hit with a significant rent hike and started investigating and rallying other tenants. Gotlib did receive a rent control exemption notice, but as an amendment to an existing lease, not before he signed the initial lease.
Hoboken’s Rent Leveling and Stabilization office ruled in favor of the landlord, but Gotlib and other tenants appealed, leading to a 4-1 ruling in their favor this week. Lincoln Eastern Management hasn’t commented on the decision, though a landlord group hinted another appeal may be in the offing.
This isn’t the only challenge to rent control in Hoboken. In June, a lawyer hired by the city to represent tenants filed a lawsuit on behalf of three families against developer AvalonBay, alleging rent hikes at 800 Madison Street were too steep.
State guidelines in New Jersey bar “unreasonable” rent increases but do not specify what is too high. It has become accepted that anything above 25 percent justifies tenants’ withholding payment and going to court.
Hoboken is even more restrictive, limiting increases to 5 percent annually for most apartments that are older than 30 years or failed to get a state exemption.
— Holden Walter-Warner
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