Recap - Oct 8, 2025 Council Mtg. and JCAOA/NJAA Joint Statement Regarding Proposed Rent Control Amendments
JCAOA and NJAA Opposition to Proposed Rent Control Amendments The following statement was sent to the Members of the Jersey City Municipal Council regarding the opposition of Ordinance 25-107, An Ordinance amending and supplementing Chapter 260 (Rent Control) to introduced rental increase limitations. The vote on was Ordinance 25-107, 8-1 (Boggiano) to introduce with the expectation of continued discussion and carrying the ordinance to the November 12 meeting for second reading. Sponsored by Council President Watterman, her comments regarding the introduction of this language is to address the number of non-owner occupied 1 and 2 family homes being purchased and driving up rent on the southside of the city. The ordinance as written does not expressly address those properties. We will continue to have conversations with Council President Watterman and members of the Council to express the opposition of this ordinance and work collaboratively towards a solution in advance of the November 12 Council Meeting. |
October 8, 2025 Dear Members of the Jersey City Municipal Council: On behalf of the Jersey City Apartment Owners Association (JCAOA) and New Jersey Apartment Association (NJAA), we are contacting you today to express our strong opposition to Ordinance 25-106, and would ask that you defer introduction to allow us the opportunity to discuss the language and grave concerns as currently drafted. Members of both organizations own, build, employ and manage both market-rate and affordable housing throughout Jersey City and throughout the State of New Jersey. The introduction of Ord. 25-106 would substantially amend Chapter 260 (Rent Control) by removing several longstanding exemptions designed to promote housing development, creating a new tenant-triggered “rent burden exemption,” and shifting certain court-mandated adjudicative functions and standards away from the Rent Leveling Board. The proposed amendments risk chilling development, invite litigation over retroactivity and contractual impairment, would be costly to operate, and would raise serious constitutional takings and due process concerns under federal and New Jersey law. Tenants in New Jersey are already protected by some of the strongest tenant protections in the nation, including the right to a lease renewal at reasonable terms, regardless of whether a property is covered by, or exempt from, a rent control ordinance. Jersey City needs to increase its supply of quality market-rate and affordable housing in all parts of the City, which will require investment in both new construction and renovating/improving our existing rental stock. We believe that these changes, while well-intended, will ultimately negatively impact the very populations they intend to serve by disincentivizing investments in Jersey City’s rental housing supply. Here are some of the legal and policy concerns with the proposed ordinance: Development and investment effects: Removing the redevelopment exemption undermines incentives that facilitated large‑scale private investment and public‑private redevelopment projects, likely reducing new housing supply and discouraging future projects. Retroactivity and contractual impairment: If applied to projects built or approved under earlier redevelopment agreements, the change could trigger estoppel, breach of contract, or impairment of contractual obligations claims, producing costly litigation. The ordinance should state explicitly that changes apply only prospectively. Takings and constitutional due process concerns: Fixing rents at lower levels because of a tenant’s income and imposing long‑term reductions on specific owners risks being characterized as singling out property owners to shoulder a public burden, which raises takings questions under federal precedent (Penn Central and Yee) and New Jersey constitutional doctrine. The Rent Burden Exemption and the new hardship mechanics increase the danger that an efficient owner will be prevented from earning a just and reasonable return, creating a plausible confiscation claim requiring detailed factual inquiry under established New Jersey standards. The NJ Supreme Court outlined a process that must be followed to ensure a just and reasonable rate of return. See cases below, commonly referred to as the "Rent Control Trilogy". Troy Hills Village v. Parsippany-Troy Hills Tp. Council, 68 N.J. 604 (1975); Brunetti v. Borough of New Milford, 68 N.J. 576 (1975); Hutton Park Gardens v. West Orange Town Council, 68 N.J. 543 (1975). The 6 percent annual cap on hardship increases, regardless of demonstrated need, may defer but not resolve owner losses. As such, this limitation could further enhance regulatory taking claims, as requiring a property owner to rent property at a loss is not within the purview of fair regulation of the landlord-tenant relationship. Statutory inconsistency and administrative confusion: The ordinance’s inconsistent income definitions (net income in notice; adjusted gross income in the exemption) create confusion for implementation and invite disputes over eligibility and proof. We hope you will allow us the opportunity to discuss this ordinance. We will continue to make ourselves available to Council President Watterman, as well as the entire Council. Should introduction of the ordinance proceed, we will work with all of you to discuss alternative and equitable measures. Wendy S. Paul, MPA Executive Director Jersey City Apartment Owners Association 344 Grove Street|Suite 189|Jersey City, NJ 07302 tel: 551-430-0371 wpaul@jcaoa.com Nicholas J. Kikis Vice President, Legislative & Regulatory Affairs New Jersey Apartment Association (NJAA) Phone: 732-992-0605 Mobile: 609-775-8131 162 West State Street, Trenton, NJ 08608 Email: Nicholas@njaa.com |
Click here for the October 8, 2025 Council Agenda Next Caucus Meeting: Monday, October 20, 4 PM Next Council Meeting: Wednesday, October 22, 6 PM FIRST READING Agenda Item 3.1 - Ordinance 25-107 Introduced 8-1 (Boggiano), carried to November 12 meeting Ordinance Amending and Supplementing Chapter 260 (Rent Control) to Introduced Rental Increase Limitations § 260-4. - Procedure for cost-of-living increases. Each notice must inform the recipient of their right to seek a “Rent Burdened Exemption” pursuant to § 260-21 of this code that shall state as follows: If the new proposed rent shall result in you paying greater than thirty (30) percent of your monthly net income towards rent, you have a right to apply for a “Rent Burdened Exemption” pursuant to §260-21 of the Municipal Code of the City of Jersey City. Such an exemption will cap any rent increase at an amount not to exceed thirty (30) percent of your monthly net income, although you may be required to continue to pay your present amount of rent. To learn more about applying for this exemption, please contact the Office of Landlord/Tenant Relations by phone at (201) 547-4821.” Application for Hardship Rental Increases (Owners). a. An Owner may file an application with the Office of Landlord/Tenant Relations seeking a rent increase for any Unit(s) subject to this Chapter where the Owner claims he or she is not receiving a Fair Return as set forth herein, referred to as a “hardship rent increase.” b. The net operating income may be deemed fair if it is at least 40% of the annual gross income of the Unit(s) or Dwelling(s) in the Test Year. Upon demonstration of proper proofs, an applicant may be entitled to a rent increase sufficient to produce a fair net operating income of 40% of annual gross income. c. Pre-requisites. In order to apply for a hardship rental increase, a property owner must: i. provide proof of ownership of the Unit(s) or Dwelling(s) for at least one year prior to the application; ii. submit six years of Landlord Registration Statements or obtain a Base Rent Calculation pursuant to this Chapter; iii. aver that there are no outstanding illegal rent petitions or failure to maintain services petitions at the time of application; and iv. submit to reasonable inspection of the subject Unit(s) or Dwelling(s) by the Office of Landlord/Tenant Relations as necessary. § 260-21. Rent Burdened Exemption for Tenants A.Any tenant subjected to a rent increase pursuant to this Chapter that would result in a rent that exceeds thirty (30) percent of their household income may apply to the Office of Housing Preservation for a rent burden exemption from the increase at any time ten (10) days or more prior to the hearing on the landlord’s application before the Rent Leveling Board. B. A rent burden exemption application shall include all necessary documentation requested by the Office of Housing Preservation to determine the household income of the applicant. Upon approval of the application by the Office of Housing Preservation, the tenant’s monthly rent shall be set at a limit that shall not exceed the greater of either: (i) the prior year’s rent, or (ii) thirty (30) percent of the applicant tenants' household income. The term of the rent burden exemption shall be for one (1) year after the date of the Rent Control Officer's final determination C. Thirty (30) days prior to the expiration of the rent burden exemption, the tenant may apply for extension of such exemption to the extent that the non-exempted rent-controlled amount continues to exceed 30% of their household income. Such an application for extension of the rent burden exemption must include all necessary documentation required by the Office of Housing Preservation, and the same must be updated to reflect the tenants’ household income at the time of application. If approved, the extension shall be for an additional one (1) year. D. Where the provisions of Section 260-21 conflict with the provisions of under 260-3 (allowable increases), 260-4 (procedure for cost-of-living increases), or 260-5(capital improvement and service charge), Section 260- 21 shall prevail. Agenda Item 3.2 - Ordinance 25-108 Introduced 8-1 (Boggiano) October 8 An Ordinance of the Municipal Council of the City of Jersey City amending Chapter 187 Inclusionary Zoning Ordinance. Amending Chapter 187 of the Jersey City Municipal Code to include definition for "Converted Hotel Units" and updating their Affordable Housing Requirements CONVERTED HOTEL UNIT(S) means that portion of a proposed or existing Development which seeks to convert or change hotel units to residential units on the basis of converting one (1) hotel unit for (1) residential unit in accordance with the Jersey City Land Development Ordinance or any applicable redevelopment plan. SECOND READING Agenda Item 4.1 - Ordinance 25-101 INTRODUCED 9-0 September 24 ADOPTED 9-0 October 8 An Ordinance of the Jersey City Municipal Council approving a tax exemption and authorizing a financial agreement with Sussex Street Associates regarding a project at 177 Grand and 193-195 Grand Street pursuant to the Long-Term Tax Exemption Law, N.J.S.A. 40A:20-1 et seq. 413 units, 15% affordable units, 62 affordable housing of which 50 units are 2 and 3 bedrooms Rate of 12% of Annual Gross Revenue for the first fifteen (15) years of the agreement, estimated revenue $2.5M 7500 sq. ft. for use of a nursery school Land will also be developed to allow St. Peter's Prep to extend their football field Agenda Item 4.4 - Ordinance 25-105 INTRODUCED 9-0 September 24 ADOPTED 9-0 October 8 An Ordinance amending and supplementing Chapter 1 (General Provisions) Chapter 218 (Multiple Dwellings), Chapter 260 (Rent Control), Chapter 254 (Property Maintenance) and Chapter 1 of the Code of Ordinances of the City of Jersey City to establish mandatory minimums for violations of housing-related ordinances. General penalty. A.Notwithstanding any other section of this Code or any other ordinance, all penalties for violating any provisions of this Code are subject to the maximums authorized by law (including N.J.S.A. 40:49-5) of a fine of up to two thousand dollars ($2,000.00) and/or imprisonment for a period of up to ninety (90) days and/or a period of community service not exceeding ninety (90) days; provided, however, that for the violation of an ordinance pertaining to solid waste disposal the maximum penalty shall be ten thousand dollars ($10,000.00), and the minimum penalty shall be two thousand five hundred dollars ($2,500.00); provided further, however, that for violations of Chapter 287 by owners of multiple-family residential property, the minimum penalty shall be: 1.Two hundred fifty dollars ($250.00) for properties that are one (1) to four (4) units; and 2.Five hundred dollars ($500.00) for properties that are five (5) or more units. Continuing violations. 1.Continuing offense: A period that begins with a first violation and continues until compliance is established. Each day that a violation of this Code or any ordinance continues shall constitute a separate offense. 2.Single summons sufficient: The City may charge a continuing offense in a single summons, and upon conviction by plea or trial, the court may impose a separate penalty for each day the violation continued without the need to issue a separate summons for each day. For purposes of calculating daily penalties, the period of violation shall run from the date of offense alleged on the summons and shall continue until the violation is abated or until conviction by plea or trial, whichever is first. 3.Stacking: Penalties shall be assessed per violation, per day. 4.Mandatory minimums: Nothing in this section alters any mandatory minimum penalty established elsewhere in this Code or ordinance. A violation of Article II shall, upon conviction, be punishable by a fine of up to $2000 per unit, as provided in Chapter 1, General Provisions, § 1-25, but not less than $100 per unit per day of the continuing offense. Chapter 260 (RENT CONTROL) shall be amended as follows: § 260-17. - Violations and penalties. A violation of any provisions of this chapter, including but not limited to the filing with the Rent Leveling Board or the Administrator of any material misstatement of fact, shall be punishable as provided in Chapter 1, General Provisions, § 1-25. A violation affecting more than one tenant shall be considered a separate violation as to each tenant per day of the continuing offense. Violations of multiple provisions of this Code shall be considered a separate violation as to each provision. a.For each violation of this chapter, the violator shall be subject to a mandatory fine of not less than one hundred dollars ($100.00) and not more than two thousand dollars ($2,000.00). 2025 Caucus/Council Meeting Schedule Caucus (4 PM) and Council Meetings (6 PM) are held in-person at Council Chambers, unless otherwise noted. A recording will be uploaded on the city's Jersey City TV You Tube channel within 24-48 hours of each meeting. LIVESTREAM: All Municipal Council Caucuses and Meetings are streamed via Microsoft Teams. Public speakers must be present in person to speak at Council Meetings. Link to view Caucus Meeting via Microsoft Teams Link to view Council Meeting via Microsoft Teams Link to Jersey City Online Permitting and Licensing Portal Link to Jersey City Municipal Utilities Authorities (JCMUA) Link to JC Housing , Economic Development & Commerce CITY COUNCIL AND WARDS Joyce E. Watterman, Councilperson-at-Large, Council President Daniel Rivera, Councilperson-at-Large Amy DeGise, Councilperson-at-Large Denise Ridley, Councilperson, Ward A, President Pro Tempore Maureen Hulings, Councilperson, Ward B Richard Boggiano, Councilperson, Ward C Yousef J. Saleh, Councilperson, Ward D James Solomon, Councilperson, Ward E Frank E. Gilmore, Councilperson, Ward F |
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