Jersey City — and New Jersey as a whole — could see a tidal wave of tenant efforts to gain rent control after a landlord lost a dispute at Portside Towers.
Last week, the Jersey City Rent Leveling Board unanimously voted that the pair of buildings at 155 Washington Street and 100 Warren Street were subject to rent control, NJ.com reported. Leases at Equity Residential’s 527-unit complex could be rolled back to 2016 rent levels as a result, plus tenants are seeking damages for paying too much rent from 1998 to 2016.
A year ago, tenants began organizing following steep rent increases. Tenants at the waterfront complex claimed they were facing rent increases of up to 40 percent, which Equity blamed on an algorithm.
In the process, tenants discovered that ownership at Portside failed to file for an exemption from rent control on time. All apartment buildings in Jersey City of at least five units are presumed to be rent-controlled under a 1987 state law; new building developers can apply for 30-year exemptions.
The 19-story western building was built in 1992 and the 26-story eastern building was built in 1997, but did not apply for exemptions in a timely manner, so both are retroactively subject to rent control, the board ruled.
The president of the tenant association at the eastern property claimed tenants have been overcharged by $134 million, a significant liability for Equity. The city’s rent control law typically limits rent increases to 4 percent, but some tenants say increases have been 20 percent and even 35 percent.
Equity can appeal the case to the state Superior Court. It did not comment on the ruling to the publication.
Many city officials praised the decision as a win for tenants. Kevin Weller, the tenant association president, suggested the case could set a precedent for other battles in Jersey City and New Jersey as a whole.
Unsurprisingly, landlords aren’t happy with the decision or its potential ramifications. Ron Simoncini, a notable landlord advocate in the state, pushed back against the potential for a sweeping precedent and said the board’s ruling based on the omission of a filed form is an “evil moment.”
Correction: A previous version of this story stated that the case will be heard in the state’s Supreme Court. Also, the eastern building is immediately eligible, not eligible in 2027.
— Holden Walter-Warner
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