Tenants Win Hearing Against Luxury Landlord AvalonBay In Hoboken

HOBOKEN, NJ — A luxury building in Hoboken that has issued rent increases to tenants of sometimes more than 30 percent will now have to keep increases to around 5 percent, after a hearing before the city's Rent Stabilization Board was resolved in favor of tenants on Wednesday night.

Lawyers from Avalon Hoboken faced off Wednesday with tenants and their advocates, and ultimately, the board sided with tenants, saying that Avalon had not properly received a state exemption from Hoboken's rent control laws.

Last year, a number of corporate landlords in Hoboken began raising rents as high as 25 percent or more, prompting tenants to investigate state and local laws about increases — which resulted in a better outcome for tenants than many of them expected.

According to a state law passed in 1987, new apartments could become exempt from local rent control for 30 years if the builder received an exemption before receiving their Certificate of Occupancy.

However, tenants are now finding that many buildings didn't get the exemption on time, didn't get it at all, or didn't give their tenants a notice that they were exempt, all requirements of state law.

Additionally the state's anti-eviction law says that all New Jersey tenants, whether rent-controlled or not, whether the lease is month to month or year to year, may not have to pay an increase that's deemed "unconscionable" in court.

While some tenants believe the law doesn't apply to them, it actually applies throughout the state.

In Hoboken, buildings governed by the city's 1973 Rent Control Ordinance are limited to 5 percent annual increases, as well as larger decontrols every few years if someone moves out, and pass-throughs for charges such as tax increases.

But tenants and landlords are not always certain where they stand, leading to confusion.

Hoboken has had a tenant advocate under contract for decades to help them, and area nonprofits like the Waterfront Project can also help — yet, the local and state laws can remain murky.

The city of Hoboken reached out to Avalon Bay about its rent increases earlier this year, and still, without immediate penalties, the landlords were still asking tenants to pay annual increases of 20 percent or more, tenants said.

In June, Hoboken's tenant lawyer filed a lawsuit against Avalon Hoboken on behalf of three tenants in that building, arguing that the increases were unconscionable.

In one case, according to the city, a single mom at Avalon Hoboken saw her monthly rent go from $3,990 to $5,826 in two years, forcing her to face having to move and uproot her child from local schools.

But the Wednesday hearing was separate, an attempt for the Rent Board to determine whether the building falls under local rent control. (If not, the building would still be subject to state guidelines about unconscionable increases.)

After hearing testimony Wednesday night, the board said the building is subject to Hoboken rent control.

Tenants may now have their rents rolled back and get additional damages, by law, although Avalon may appeal again.

Patch has reached out to Avalon's attorney and will update this story if more information is received.

Similar Situations

Among the surprises at the hearing, Kevin Weller, a tenant involved in a similar dispute at the luxury Portside Towers building in Jersey City, pointed to statements made by the lawyer working for his landlords in Jersey City — because the same firm is also been representing Avalon Hoboken.

Weller referred to briefs filed by attorney Jennifer Alexander in his case in Jersey City, noting that the same state law about exemptions applies in Hoboken, and that tenants in one town should be subject to the same standards as in another. (Listen to audio here.)

He went as far as to cite the 14th Amendment, saying Hoboken and Jersey City residents should be treated the same under the state law.

After hearing testimony from both sides, the board determined unanimously that the building should be subject to local rent control, because years ago, the exemption wasn't filed on time.

"AMAZING Rent Board meeting tonight where the rent board ruled that the Avalon Bay is NOT EXEMPT from rent control — meaning that IS rent controlled!" wrote local volunteer tenant advocate Cheryl Fallick on Thursday.

She added, "A Jersey City renter of the Portside Towers Tenant Association, Kevin Weller, spoke as a tenant advocate at the meeting and turned how Hoboken facilitates the rent board on its head once & for all. We've had years of tenants that don't have the resources for an attorney fumble through rent board hearings to the best of their ability without a full command of the ordinance, the terms, the history or anything else."

She noted, "Well, we have officially turned the page! Apparently, the law allows a tenant advocate to speak on behalf of a tenant or tenants if one of them approves the tenant advocate speaking on their behalf. That's what happened. Kevin was brilliant. Avalon Bay is rent controlled and it's a good day."

A current Hoboken Avalon tenant, who wanted to be anonymous, said Thursday, "Tenants at Avalon Hoboken have suffered egregious rent increases the past couple of years that have forced many families to move out of their homes. That is is even more disappointing when you consider that Avalon should have been rent controlled all along."

RELATED: No, You Don't Have To Leave Your Apartment In NJ Just Because It's Been Sold

But Will This Help Tenants In Non-Luxury Buildings?

Meanwhile, tenants in several other buildings say they are still fighting increases as high as 15 percent per year, and pressure to move. And they note that without enforcement or pressure on landlords to stick to the law, it's hard to fight.

While the nine-member City Council passed some rent control changes in 2022, they ultimately decided this year to bring others back to the drawing board for further discussions.

Just this week, a candidate for Hoboken City Council said he's proposing a citywide 7.5 percent rent increase cap, among other ideas to clarify the laws and prevent abuse.

However, it's unclear whether the mayor or council majority — who haven't broached these ideas publicly despite deliberating over rent control changes for over a year — would support this platform. Read more here.

Kevin Weller, the Jersey City tenant who spoke at the Hoboken meeting, said that Jersey City's own rent board will hold a hearing on Portside Towers next week. He believes the Hoboken ruling could inform the outcome. That meeting is scheduled for Oct. 19.

Patch has written more than a dozen stories on these controversies over the past year. For further reading:

READ MORE: Are 25 Percent Rent Hikes Legal? Hoboken Lawsuit May Set Precedent

READ MORE: What's The Latest With 'Unconscionable' Rent Increases?