The Hoboken Tax Reform Coalition
ANOTHER INCORRECT RULING BY RENT BOARD
The Mile Square Taxpayers Association has protested the Hoboken Rent Leveling Office’s recent declaration that apartment owners are required to reduce rents because the consumer price index declined.
The Rent Control Ordinance does not speak to declines in the CPI, it only states that rent increases are limited to increases in the CPI.
In a letter to the Rent Leveling Officer Suzanne Hetman, Mile Square also called into question the discretion of the Rent Leveling Board in broaching the matter, noting that “the legal status of the Board is unclear,” as a result of unfilled vacancies.
“Once again, we have the Hoboken Rent Leveling Office exceeding its authority by interpreting the rent control ordinance and providing an erroneous reading,” says Charles Gormally, attorney for Mile Square Taxpayers Association. “Two judges are already deciding cases originating as a result of prior misguided actions that have cost the City of Hoboken millions of dollars in litigation costs, lost rental revenue and lost tax revenue. This is just another case of ineffective controls and a purely political posture regarding administration of the ordinance.”
Testimony from an expert economist in one case highlighted research done on records pertaining to 1400 rent controlled apartments that showed ineffective custody of records; inconsistent application of policy; conflicting policy; poor record keeping and other instances of arbitrariness, capriciousness and neglect on the part of the office.
“Property owners are regularly accused of criminal conduct as a result of following the Rent Leveling Office’s policies, only to have the Rent Leveling Office arbitrarily alter its policies and make them effective retroactively,” says Mr. Gormally. “And in litigation, the Rent Leveling Officers admit easily that they have performed their duties in such a way that it is impossible to be in long term compliance with their policies.”
“Even for Hoboken, the gross incompetence of the Rent Leveling Office is a shocking failure of government: pander to the voters no matter what the equities or what the ramifications. It is why Hoboken finds itself under the control of a state monitor, among the other obvious consequences of its style of governing.”
The Rent Control Ordinance does not speak to declines in the CPI, it only states that rent increases are limited to increases in the CPI.
In a letter to the Rent Leveling Officer Suzanne Hetman, Mile Square also called into question the discretion of the Rent Leveling Board in broaching the matter, noting that “the legal status of the Board is unclear,” as a result of unfilled vacancies.
“Once again, we have the Hoboken Rent Leveling Office exceeding its authority by interpreting the rent control ordinance and providing an erroneous reading,” says Charles Gormally, attorney for Mile Square Taxpayers Association. “Two judges are already deciding cases originating as a result of prior misguided actions that have cost the City of Hoboken millions of dollars in litigation costs, lost rental revenue and lost tax revenue. This is just another case of ineffective controls and a purely political posture regarding administration of the ordinance.”
Testimony from an expert economist in one case highlighted research done on records pertaining to 1400 rent controlled apartments that showed ineffective custody of records; inconsistent application of policy; conflicting policy; poor record keeping and other instances of arbitrariness, capriciousness and neglect on the part of the office.
“Property owners are regularly accused of criminal conduct as a result of following the Rent Leveling Office’s policies, only to have the Rent Leveling Office arbitrarily alter its policies and make them effective retroactively,” says Mr. Gormally. “And in litigation, the Rent Leveling Officers admit easily that they have performed their duties in such a way that it is impossible to be in long term compliance with their policies.”
“Even for Hoboken, the gross incompetence of the Rent Leveling Office is a shocking failure of government: pander to the voters no matter what the equities or what the ramifications. It is why Hoboken finds itself under the control of a state monitor, among the other obvious consequences of its style of governing.”
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Replies to This Discussion
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Permalink Reply by David on -
"it [The Rent Control Ordinance ] only states that rent increases are limited to increases in the CPI." Reminds me an incident in highschool, where two kids failed a class, and their mother successfully protested the grade because it was -2 on a 4 point scale. I thought the board should have stuck to their guns. Not a lawer, but the increase is negative, so the rent increase should be negative too. In math, at least, subraction is just adding negative numbers.
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Permalink Reply by xxxx xxxxxxx on
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Permalink Reply by xxxx xxxxxxx on
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I believe Mile Square Taxpayers Association has long been a shell front for a handful of developers.
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Permalink Reply by Jack Dawkins on
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Igcognito: I spoke with a tenant advocate who advised that you are incorrect when you say the law only applies to older tenement buildings. You are correct that it does not apply to the Housing Authority and the middle income projects like Church Towers & Marine View. It also does not apply to buildings built specifically as rental properties post 1987. Everything else is covered under rent control, including all the new developed condos, including any PILOTed buildings. As far as the new rental buildings, 333 River St. and, I believe one on Jefferson, are a couple of examples where developers certainly ripped us off! They are Piloted, they have no affordable housing and they are not covered by rent control. We should, of course, point our anger about those buildings right where it belongs...on the developers (and elected officials at the time that approved those projects) - not at the rent control protections. And we should do everything we can to take control of our town BACK from the developers who have a strangle hold on the town.
You are also incorrect about rent control laws being unconstitutional. Rent control has been challenged on more than one occasion in the courts and has been upheld. That, however, does not stop the Mile Square Developers Association from continuing to bleed the city dry with senseless law suits. They are the ones who are behaving unfairly. They are rich developers costing all the rest of the taxpayers thousands, if not millions, of dollars (including the small landords) by trying to continuously sue the city until they get their way, (i.e. ending rent control.) For or against rent control, none of us should tolorate these wealthy developers wasting our tax dollars to their huge developers' war chest of funds.
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