When Hoboken residents voted in November to approve changes to the city’s controversial 1973 rent control law, many of the changes were seen as benefiting property owners, but there was a provision to help tenants as well – a rule that landlords have to give new tenants a disclosure statement outlining their rights.
While several recent renters said that they did, in fact, sign a disclosure statement when they moved into their apartments, the city has no method in place to check up on or enforce the law.
The original 1973 rent control ordinance was established to stop rent hikes that some feared would price residents out of the mile-square city. It holds rent increases to a few percent each year, but also lets landlords apply to the city to pass along increases for capital improvements, tax increases, and water bills. Also, every three years, if a tenant has voluntarily vacated an apartment, a landlord can apply to increase the rent by 25 percent by way of “vacancy decontrol.”
Any time changes have been proposed to the rent control ordinance in Hoboken, tenants have fought the changes, fearing their rights were being diminished. In March of 2011, after a City Council committee met for two years to make three changes to the law, the City Council approved the changes. Then, tenants took to the streets to gather signatures for a public referendum vote, which occurred in November.
The ordinance does not spell out any enforcement method.
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After heavy campaigning by people on both sides of the issue, the changes were upheld in November.
So are new tenants really getting statements informing them of their rights?
The disclosure statements
The Reporter surveyed a handful of new rent-controlled tenants in Hoboken. All of them said they have signed disclosure statements.
Joseph Hottendorf, the president of the Liberty Board of Realtors, said that his board reminds its members to have the disclosure form distributed and signed.
“We remind our members of what the law is, because the [signing of the disclosure statement] is the responsibility of the property owner,” Hottendorf said. “We make sure they follow the law, and we do that not just for Hoboken, but all communities with rent control.”
Other real estate agents seemingly go above and beyond, even providing brochures that explain how rent control works in Hoboken.
Adam Bickoff is a broker/salesperson at Brian David Realty in Hoboken.
“I don’t know what every other Realtor does, but we produce our own brochure and make distribution of it mandatory when agents work on [rent controlled] listings,” Bickoff said.
Several real estate brokers did not respond to requests for comment, with some referring media questions to a national or corporate office.
No enforcement method in place
The ordinance does not spell out any enforcement method. A city attorney did not respond, as of press time, to questions about how the law is enforced.
Dan Tumpson, a tenant advocate, doesn’t believe the disclosure statement is there to provide extra protections for tenants anyway.
“The only reason that’s there is to start the clock on the two-year statute of limitations provision,” Tumpson said.
He said he also questions what’s included in the disclosure statement. “The disclosure statement doesn’t even disclose what the legal rent of the property is,” Tumpson said.
The statement outlines four rules for rent control. It states that landlords are required to have the disclosure statement signed; notify the tenant that a copy of the annual rent registration statement is on file with City Hall for tenants to look at; notify the tenant of his or her right to a legal rent calculation (which the city will do); and notify the tenant of the “Truth in Renting Act,” a state document that lists the rights of tenants regarding eviction and other matters.
A city spokesperson said that the employees in the city’s Rent Control Office distribute the regulations to property owners and tenants, as well as a copy of the ordinance upon request. The disclosure statement is also listed on the city website, found by going to http://tinyurl.com/HRRent.
When contacted last week, Councilwoman Beth Mason, the sponsor of the ordinance, said enforcement of the law may overlap with other rent control paperwork requirements, but added it is something the city should look into fixing.
“If there’s a hole in the legislation that needs to be fixed we should definitely take a look at it,” Mason said.
Have you recently rented a rent control apartment and weren’t offered a disclosure statement to sign? Send us an email at RSmith@hudsonreporter.com