ASBURY PARK – Rent control is coming to Asbury Park, but voters will decide what type of protection renters get in a special April 20th election.
People have come to Asbury Park to participate in the downtown economic transformation that has brought about a vibrant entertainment, dining and retail scene. But that has also led to rising rents, which some tenants have claimed to have displaced.
Asbury Park Affordable Housing Coalition volunteers handed out a petition forcing the city council to vote on their rental control ordinance. City guides turned it down in December, triggering a special election asking voters to approve or reject the petition ordinance.
The story continues after the gallery below.
More:Asbury Park Council is offering its own rental control plan before an alternative is voted on in April
More:Asbury Park rent control will go to voters in April unless an agreement is reached soon
Meanwhile, Asbury Park City Council has passed its own rental control ordinance, which will go into effect in June if voters reject the Affordable Housing Coalition ordinance.
So the question on the April 20th ballot is not whether residents want rent control because it is going to Asbury Park one way or another. The referendum will ultimately decide which version of the tenant control the tenant prefers.
Frankie Lane, a 33-year-old chef who lives on Washington Avenue, said renters need the relief they would get from the Affordable Housing Coalition’s version of rent control.
When he moved in three years ago, he paid $ 1,100 for his one-bedroom apartment, a rent that originally included water, sewer, and heating. However, the landlord converted the building to individual meters for water and sewage and added electric heating for each unit.
More:Gentrification in Asbury Park: Who Makes Money and Who Is Left Behind?
More:Riots in Asbury Park: 50 years later, residents remember a painful chapter in the city’s history
While his rent rose to $ 1,150, Lane said the total cost has risen to $ 1,500 due to the additional ancillary costs he now bears.
Lane said his roommates fear reporting their landlords for code violations because rising rents across town mean there are few affordable options for them to go if their landlord throws them out.
Limiting rent increases between tenants, as envisaged in the Affordable Housing Coalition’s plan, and being able to turn to a rental leveling station if there is a problem, would give long-term city dwellers more options to stay in Asbury Park, Lane said.
However, Matthew Sigman, whose family owns a number of Asbury Park apartments, said the Affordable Housing Coalition’s strict ceilings on rent increases will reduce the availability and quality of rental units in the city.
More:Marijuana is legal in New Jersey, but your landlord can stop you from smoking weed at home
More:These programs provide support to those affected by COVID-19
With rents capped over time, landlords don’t have the financial incentive to keep their homes at the same level they once were, Sigman said. This can mean a slower turnaround time for maintenance requests or less frequent cleaning of public areas.
Or landlords could give up the rental altogether and turn their homes into condominiums, reducing the number of rentals overall, Sigman said.
Jordan Modell is President of the Asbury Park Homeowners Association and owns two rental units in town. Modell said he is charging below market prices for his rental property and is trying to rent it out to tenants who may have difficulty finding accommodation elsewhere.
Modell said he thinks tenants need protection, but also worries that the Electoral Ordinance could lead to “the law of unintended consequences” if small landlords like him decide to sell their property instead of participating in the Petitions Ordinance’s rent-leveling process.
He also fears that gentrification may be accelerated rather than prevented, as landlords who continue to rent only look for tenants with high credit scores.
Asbury Park Gentrification:Who Makes Money and Who Is Left Behind?
“The person who can least afford to be kicked out will be kicked out,” he said.
Here you can see the differences between the two rental control options. If yes, the Asbury Park Affordable Housing Coalition plan will take effect. If the no voters win, the city’s rent control ordinance will go into effect in June.
Exclusive insight into the Asbury Ocean Club:50% of the luxury complex as a sales boom
How much can the landlord increase the rent if the same tenant renews?
A yes vote means: 4% or the consumer price index, whichever is lower. (As of March, the annual consumer price index, which is the federal government’s method of tracking inflation, was 2% for the region that includes Monmouth County.)
A no means: 3.5% or CPI, whichever is greater.
How much can the landlord increase the rent if the old tenant moves out and a new tenant moves in?
A yes vote means: There will be no “vacancy control” if the rental control version on the ballot is approved. This means that a landlord can increase the rent by 4% or the CPI, whichever is lower, just like between tenants.
A no means: The city’s plan, which would go into effect in June if the election application fails, provides for a “vacancy control”. That is, a landlord can set the new rent at market value for a new tenant who comes in after the old tenant leaves.
Only in the south:Does Pier Village architects’ new vision for luxury apartments on the Belmar River work?
Can the rent ever be higher than the general amount?
A yes vote means: Yes, landlords can ask the Rent Leveling Board for hardship increases of up to 20%, but they also have to prove that they have financial hardship. The landlord must not have any code violations on the rental unit. Landlords can also seek approval from the Rental Equalization Authority for increases due to tax increases, water and sewage cost increases, and repairs.
The regulation on the voting slip enables landlords to apply for a surcharge to make physical or business improvements to their rental property. The surcharge for the capital improvement must be distributed proportionally over the useful life of the improvement and must not exceed 15% of the rent of the tenant.
A no means: Yes, landlords can ask the Rent Leveling Board for tax increases of up to 20% for financial difficulties due to tax increases, water and sewer cost increases, repairs, or other financial problems. Landlords can also ask the Rent Leveling Board for increases if they want to improve their units physically or in terms of service. The surcharge for the capital improvement must be distributed proportionally over the useful life of the improvement and must not exceed 15% of the rent of the tenant.
When does the rental control ordinance apply?
A yes vote means: The Electoral Rent Control Ordinance would apply to all apartments with the following exceptions:
- Rental units in a building of four or more units constructed less than 30 years ago under New Jersey law.
- Special types of housing such as affordable housing units and student housing.
- Rental units with a short-term rental permit issued by the city.
- Two-unit building in which one of the units is condominium.
A no means: The city’s rent control ordinance would only affect buildings with five or more rental units. The following properties would be excluded:
- Buildings with four or fewer units.
- Rental units in buildings that have been built for less than 30 years, according to state law.
- Affordable housing units, student housing, group houses, boarding houses and lodging.
- Rental units with a short-term rental permit issued by the city.
- Units that are occupied by their owners for at least six months a year.
How many people will be on the Rent Leveling Board?
A yes vote means: Seven members, including four tenants and three owners. It would also create a rental stabilization officer who would work on rental issues day in and day out.
A no means: Seven members with at least two tenants and two landlords. The other three members can be any type of resident.
What’s next? Another superintendent from Asbury Park goes to the exits
Who Appoints the Rent Leveling Board?
A yes vote means: The mayor.
A no means: The whole city council.
How can the city make changes if the Asbury Park rental control ordinance isn’t working?
A yes vote means: Changes made within three years would have to go back if there was an election before the electorate.
A no means: The city council could vote to change the ordinance without bringing the measure back into a vote.
Please support local journalism by subscribing to the press at APP.com/subscribe.
Susanne Cervenka works on government and property tax issues in Monmouth County and has won several state and regional awards for her work. She has been in charge of local government for 15 years and has stops in Ohio and Florida before arriving in New Jersey in 2013. Contact her at @scervenka; 732-643-4229; scervenka@gannettnj.com.