The Jersey City Council delayed the second reading of an ordinance to amend rent control regulations, to the delight of Portside Towers residents who felt it would unintentionally benefit landlords the way it is currently written.
By Daniel Ulloa/Hudson County View
The ordinance was pulled before the meeting began and was not on the agenda, but remained a prominent talking point during public comment.
Portside Towers Tenants Association East President Kevin Weller said while the measure would hurt the city’s ability to address tenant issues and hold landlords accountable, claiming it would guarantee a 40 percent return on investment for landlords.
“More than four times the stock market! This redefines what hardship means to make rent control meaningless,” he exclaimed.
The local legislation was sponsored by Council President Joyce Watterman and sought to allow tenants who pay over 30 percent of their income in rent to be able to file a rent burdened exemption, while landlords could claim depreciation on federal tax returns for any permanent improvement that adds “substantial value” to their property.
Weller noted that he had statements of opposition from four of Watterman’s mayoral opponents: Former Gov. Jim McGreevey, Hudson County Commissioner Bill O’Dea (D-2), Ward E Councilman James Solomon, and ex-Board of Education President Mussab Ali.
Joel Rothfus thanked Solomon for his leadership in opposing the ordinance, before outlining other problems, such as requiring the Office of Landlord Tenant Relations to review at least 1,500 applications to ensure people qualified for rent control via income limits.
Rothfus said to accomplish such a feat, that office would need at least 40 employees.
“ … This proposal is a wolf in sheep’s clothing,” Vania Sousa said, stating she was quoting 32nd Legislative District state Assembly Democratic nominee Katie Brennan, a housing policy expert.
“You’re considering new law that makes enforcement pointless!” she said. “You won’t collect fines from landlords … Can we have a motion? We have 30 seconds,” Suzanne DeFelice added.
Deputy City Clerk John Hallanan, filling in for City Clerk Sean Gallagher, said that was not the right time to do.
“Anyone here want to pay for their landlords’ violations?” DeFelice asked to many resounding “no’s” from the audience.
“Thank you,” Watterman replied.
Another Portside tenant, Jessica Brann thought these were perhaps unintentional consequences for what was probably a well intentioned piece of local legislation, prompting her to ask Watterman some questions.
“Who gave this to you? Council president, you put your name on this: What analyses did you perform? Will you launch an investigation into how this was drafted?”
Danilo Kirschner was also critical of the pulled ordinance, reiterating that landlords could push operating expenses onto tenants.
“I wonder what is the motivation of a mayoral candidate to introduce that ordinance before the election,” he stated.
“Thank you,” Watterman replied, to which Kirschner said she did not have to thank him.
Ward D Councilman Yousef Saleh defended Watterman and asked if any tenants reached out to her about the ordinance, which was approved 8-1 on first reading (Ward C Councilman Rich Boggiano voted no) on October 8th.
“I would caution everyone from jumping the gun,” he argued, also declaring that major landlords such as LeFrak are against the measure too.
He continued that the ordinance “expands rent control. We are working on it. There’s going to be a new draft. Give the council president a little grace,” arguing that the 40 percent return on investment (ROI) guarantee several speakers had cited was not included.
Saleh argued that the 40 percent ROI guarantee was not included.
“That was not my intent,” Watterman added.
A short time later, Saleh said that a new ordinance is going to be introduced, which is a long time in the making since there was a committee formed on this topic prior to the COVID-19 pandemic.
Nonetheless, resident John Wilson said it was still troubling that the measure was introduced.
“There was no discussion,” he argued.
“It wasn’t suddenly: There was a meeting. Me introducing this ordinance is part of a stabilization of rent,” Watterman responded, also stating that ordinances are often withdrawn and reconsidered after first reading.
Watterman said first-reading ordinances are often withdrawn and reconsidered.
To that point, Saleh noted he raised issues on the recent mandatory minimum fines ordinance that led it to be reintroduced on first reading and ultimately passed.
“Lawmaking is going to be messy. That is part of the process,” he said.
“Thanks, good to know,” Wilson replied.
Portside Towers Tenants Association West President Michele Hirsch noted that there is a committee investigating landlords over renter protections consisting of Saleh, Councilwoman-at-Large Amy DeGise, and Ward F Councilman Frank “Educational” Gilmore.
She asked if it had convened recently, to which Saleh said the committee had been revived last year before receiving new life in August.
“We had a working draft on May 8th, because of everything that’s happening, we put it on pause … We want to make sure it’s enforceable,” he contended.
“Corporation Counsel is looking into subpoenas for outside individuals: I’m completely on your side. One hand doesn’t know what the other … is doing.”
Hirsch still believed that some sort of landlord lobbyist had influence on the process and wanted their committee to investigate, to which Saleh later said he had his own concerns about the current version.
“I share the sentiments of the residents: I recall things like this happening when I was a city employee in the Department of Recreation,” Gilmore added.
The council took no formal action on the matter at last night’s meeting.