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Is there rent stabilization in NJ or is this free market apartment? Just curious.
Newport is not rent-controlled. Jersey City's rent control laws are similar to NYC's. Like those in NYC, they do not apply to all apartments. All of the newer developments in Jersey City, including Newport, are exempt from rent control laws. (No developer would build new construction if it were going to be rent-controlled, so we'd still have a waterfront filled with vacant lots and abandoned warehouses.)
In particular, these are the exemptions from rent control in Jersey City. Bold describes Newport.
DWELLING - Any building or structures rented or offered for rent to one or more tenants or family units.
A. Exempt from this definition are:
(1) Dwellings with four or less housing spaces.
(2) Low rent public housing developments.
(3) Units where rent is determined as a factor of income.
(4) Units receiving state or federal subsidies directly to the owner and where federal preemption from local rent control is ordered by the United States Department of Housing and Urban Development pursuant to federal law or regulation.
(5) Licensed hotels or motels and commercial and industrial space. (6) Newly constructed dwellings with 25 or more dwelling units located within a redevelopment area as defined in Section 5 of the Redevelopment Agencies Law, N.J.S.A. 40:55C-5(o), for which the City Council has approved a redevelopment plan, in accordance with Section 17 of the Redevelopment Agencies Law, N.J.S.A. 40:55C-17.
(7) All buildings or structures, hotels, motels or guesthouses which are converted from any previous use as a nonpermanent dwelling to use as a dwelling on or after October 1, 1983. For the purpose of this exemption, a building shall be deemed converted for use as a dwelling on the date on which the certificate of occupancy for dwelling use is issued.
Last edited by BrownstoneNY; 03-21-2013 at 10:24 AM..
Yup, go ahead and do it. And see how easy it is to ever rent again with an eviction on your record. I've read some zingers on C-D over the years, but this one has got to be in the top five of the "most ridiculous" list.
In the absence of rent controls a landlord is free to raise rent as high as they wish on a lease renewal as long as they can justify the new rent based on market conditions. The laws in place to prevent "unconscionable" rate hikes are designed to protect tenants from a landlord unilaterally raising rents beyond a "market rate", which is generally done if a landlord wants to get rid of a tenant.
If you were to actually take this to court, all the landlord would need to prove is that the new proposed rate is similar to current market rates for your type of unit. Given that your unit is owned/operated by an actual property management company, I sincerely doubt that they are proposing an "unconscionable" rate hike and will most likely bury you with examples of units that have similar or higher rents then what they are proposing. The rental market is red hot right now and rents are at near all time highs. I know some properties that have levied 20% increases that were perfectly inline with what their market now commands.
If you do decide to fight this, the proper way is to inform the landlord via writing that you intend to stay in the unit, but are refusing to accept the increased rental amount which you deem to be "unconscionable". From there, you need to stop paying your monthly rental fee for the period that would have begun the new lease. Instead, you will place the amount into a separate escrow account, which signals your desire, willingness and ability to pay. Ideally you will have a tenant rights lawyer who would handle the escrow account. The landlord will then file an eviction motion against you. When you go to court, the judge will hear the case and you will plead that the increase was "unconscionable". The landlord will then present evidence showing that it was "conscionable" based on market conditions. Once the judge decides against you, you will be presented with a couple of options:
1. Pay all arrearages and sign a new lease at the proposed rate.
2. Pay all arrearages and voluntarily vacate the property.
3. If you refuse 1 or 2, the judge will file a motion for eviction and order you responsible for all arrearages and the landlords court costs.
The tricky part here is that even if you are not legally evicted by order of the judge, a record exists of an eviction motion having been brought against you. This will show up on any decent landlord background check and most would decline to rent to you without one heck of an explanation.
So the Section 5 is a deal the city gubment, planners, fathers, and developers made so everyone can make some moolah. Is there a Section 5 in NYC?
In NYC, no new buildings are ever subject to rent control/stabilization unless the developer takes certain tax breaks that require stabilization. Otherwise, all rent controlled/stabilized apartments in NYC were built before the 1970s. Jersey City's rent control laws are more strict and at least in theory apply to some new development (though no new development would ever happen that would be subject to rent control because developers won't build if they know the building will be subject to rent control).
From a homeowner who's been paying high taxes for years and hasn't had a child in the NJ school system for over 12 years...boo hoo. Don't like it, then move out.
Remember homeowners have no recourse and Christie's 2% max was all smoke and mirrors.
Thank you all for the comments. Some of you have raised some good points. The strategy clearly has some risks. I am wondering though why there is not a single poster on this thread who has tried this either successfully or unsuccessfully. Are there no activist tenants in NJ?
I am renting in Newport towers in Jersey City. The management office wants to increase my rent 9% after increasing it by 9% last year. Given the economic conditions, this is outrageous.
I spoke with someone at the local tax assessor office. He suggested a third alternative to moving out/paying the increase. He said I should just not pay the increase and see what happens. The landlord will try to evict me of course but it will take months and will need to get permission from a judge. At least this way, I will get an opportunity to make the case in front of a judge rather than talking to the mgmt office staff who could care less. He said worst case the judge finds the rent increase acceptable and you pay that increase and stay on. I asked him why more people don't do this (given that there is only upside) and he said a lot of people already do.
If you have any experience in this and or are in a similar situation and would like to brainstorm, please send me a note. If you are on the landlord's side, please disregard my post.
You will be evicted so fast your head will spin. If you don't pay the increase, you will be subject to "holdover" rent usually 150% of your prior rent. You have a bad strategy, but I am curious how it plays out. Keeps us informed.
Thank you all for the comments. Some of you have raised some good points. The strategy clearly has some risks. I am wondering though why there is not a single poster on this thread who has tried this either successfully or unsuccessfully. Are there no activist tenants in NJ?
They've all been evicted and no longer have internet access.
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