Rent Control In Caldwell: Board Debates Changes For Tenants, Landlords

CALDWELL, NJ — Borough officials in Caldwell are taking another look at the town’s decades-old rent control law.

The Caldwell Rent Review Board continued their talks about a potential update to the town’s regulations at their Wednesday meeting, hammering out a resolution that will eventually be passed to the Caldwell Borough Council (watch the video below, cued to the discussion).

Each year, the board is charged with taking a fresh look at the local regulations and recommending any needed changes to the Caldwell council. The council then has the authority to act on their suggestions – or ignore them.

Caldwell’s rent control rules lay out a sliding scale based on the total amount that is being charged, with some exceptions. Annual increases for the vast majority of renters (those paying $750 per month or more) are capped at 2.75 percent. Landlords are also allowed to raise rents up to 25 percent when they “turn over” apartments between tenants.

Article continues below

Average rents in Caldwell Area are between $2,000 and $3,050 for one and two-bedroom units, although there are a handful of renters who pay less than $2,000, the board has reported.

The arrangement appears to be working out for property owners, board members have previously said: only one landlord has filed a hardship case in recent years. However, the board has been brainstorming the possibility that it may be time to raise the limit.

That idea appears to have lost steam, as per this week’s meeting.

After a discussion, the board voted in favor of keeping the 2.75 percent annual maximum increase intact. Board chair Frank Galante said he and his peers have received feedback from several tenants over the past couple of months, and have “taken it to heart.”

“We heard from a lot of tenants that the 2.75 percent [cap] is working for them – that nobody likes an increase, but the 2.75 percent has been palatable … it has allowed them to remain in their apartments and remain in our town,” Galante said.

Some Caldwell residents have argued that raising the maximum rent increase would price them out of their homes. In January, a longtime renter who lives on Bloomfield Avenue told the board that while she understands the need for landlords to upkeep their buildings, many tenants haven’t seen pay raises that can keep pace.

Another resident told the board that many young families move to Caldwell looking to rent a home while they save up to buy their own.

LOWER CAP FOR SENIORS

On Wednesday, the board also voted in favor of recommending a new clause that would cap rent increases for people 65 and older at 1.75 percent in Caldwell.

Board members have previously pointed to rent control laws in the nearby towns of Verona and Montclair, which use a two-tier system with separate caps for senior citizens. See Related: Montclair Rent Control Advocates Share Some FAQs About New Law

THRESHOLDS

This year, the board has been mulling the possibility that the current sliding scale – which bottoms out at $299 per month – is “antiquated” and needs to be updated according to current market rates.

What would a more accurate update look like? Here are the projected numbers that Rent Review Board attorney John Chiaia presented at the January meeting, as pegged to the Consumer Price Index (CPI) in 2022:

After some discussion at Wednesday’s meeting, board members decided to eschew the sliding scale altogether, instead recommending that the council cap rent increases at 2.75 percent – regardless of how much tenants pay in total.

The rent review board’s next meeting is scheduled for Wednesday, May 15. A final vote on the board’s resolution for the council is expected at that time.

Send local news tips and correction requests to eric.kiefer@patch.com. Learn more about advertising on Patch here. Find out how to post announcements or events to your local Patch site. Don’t forget to visit the Patch Caldwells Facebook page.