Record 9/22: Teaneck Eases Rent Control Rules

As reported in today's Record, with the prospect of controls being entirely eliminated, Teaneck's Township Council approved a compromise rent-control ordinance at Tuesday's Council meeting that will implement full vacancy decontrol, increase limits on annual rent rises and replace the Rent Board with a township administrative officer. See today's Record or click on http://tinyurl.com/7s5zs for the full text of the article at the Record's http://www.Bergen.com web site (registration required).

Teaneck eases rent control rules Thursday, September 22, 2005 By BRIAN ABERBACK STAFF WRITER

TEANECK - The Township Council made several changes to the town rent-control ordinance on Tuesday, capping a nearly yearlong debate among the council, landlords and tenants.

The major change involves eliminating any restrictions on the amount landlords can raise the rent on vacant apartments.

Other significant changes include a raise in the yearly rental increase allowance and replacing the volunteer rent board with an administrative officer, likely the township manager, to hear landlord-tenant disputes. The changes go into effect Nov. 1.

The council voted 5-1 on the revisions after a 2½-hour public hearing attended by about 125 people. The issue came to the fore in October, when a landlords group began lobbying the council for changes to the ordinance. Tenants fervently fought the changes.

"I believe we reached a fair compromise after hours of discussion and listening," said Councilman Paul Ostrow. "The council carefully evaluated every aspect of the rent ordinance and its economic, sociological and legal impact upon tenants, landlords, homeowners and municipal services."

The alternative was abolishing rent control altogether. The rent ordinance must be readopted each year, and there likely would not have been enough votes to renew it without instituting vacancy decontrol.

Mayor Jacqueline Kates, Deputy Mayor Deborah Veach and Councilwoman Monica Honis did not want to give landlords vacancy decontrol.

But Ostrow and Councilman Yitz Stern would not vote for an ordinance without that provision and Councilman Michael Gallucci would not vote for any form of rent control. Councilman Elie Y. Katz recused himself from the vote because he is a landlord.

"It's a very difficult compromise," Kates said. "I did not want to see that ordinance die. That's how I look at it."

Landlords are currently allowed to increase the rent on vacant apartments by a maximum 10 percent, and only once every two years. Under the revised ordinance, yearly rent increase restrictions will still apply once a vacant apartment is rented.

Landlords said the changes, especially vacancy decontrol, will bring much-needed revenue increases. They said that rising fuel, insurance and utilities costs have prevented them from maintaining their properties at an optimum level.

Arnold Litt, the attorney for the landlords group, said that the situation has led to depreciated property values for apartments, which in turn has resulted in higher property taxes for homeowners.

"Rent control resulted in the stagnation of the economic fiber of this town," Litt said. "This is a monumental change."

Tenants and their advocates also say the changes are epic, as in a colossal disaster. They say landlords have shown no proof of their financial woes, and that a study they presented on rent control's effect on property taxes is flawed.

Renters, especially working-class families and the elderly, will not be able to handle the increases, tenant advocates said.

"Everybody's in a pinch," said Mitchell Kahn, vice president of the New Jersey Tenants Organization and executive director of the Bergen County Housing Coalition.

"The landlords say fuel is going up 40 percent. Do you think [tenants'] Social Security checks are going up 40 percent a year?" Kahn asked.

Several tenants who attended the meeting Tuesday said that if the landlords are suffering, they should open their books and apply for a hardship increase, which the ordinance provides. No one has applied for a hardship increase in the past decade.

In response, one landlord said to the audience, "Why don't [tenants] show us their tax returns?"

Kates said she worries that working-class families who want to move into town and elderly residents who want to sell their homes and move into apartments will not be able to afford it once vacancy decontrol takes effect.

"The emergency that was the justification for starting rent control in 1973, providing affordable housing, still exists," Kates said. "If anything, there is less affordable housing in town now."

But Stern said another dire situation is also present: "We're missing out on ratables" because of the depreciated property values, Stern said. "It is my responsibility as an elected official to represent all the taxpayers of the town."

The volunteer rent board was abolished because of a lack of work - until last year the board had not heard a case in 10 years - and because the council felt the township manager would handle the complaint process more smoothly.

"The complaints will be handled much more expeditiously, as far as the resources the manager has at her disposal," Kates said.

Teaneck is one of about 120 towns in New Jersey, including some 30 in Bergen and Passaic counties, that have some form of rent control. It was considered to have some of the most tenant-friendly regulations in the state.

E-mail: aberback@northjersey.com Copyright © 2005 North Jersey Media Group Inc.

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