Rent control hot button issue
Will voters cast ballot to bring old system back?
by Joseph Passantino
Sep 24, 2014 | 4850 views | 4 4 comments | 87 87 recommendations | email to a friend | print

City rent-control activists believe that this is their year, when they will bring back to Bayonne rent control as it existed in the city for nearly 40 years. Starting with a successful petition campaign in the spring that got the referendum placed on the Nov. 4 ballot, and then buoyed by an administration sympathetic to the cause, the advocates believe they will be able to reverse the result of two years ago, when a similar measure was defeated by 141 votes out of 13,789 cast.

“We’re very confident,” said Ed Gilligan, president of the Bayonne Tenants Organization. “With the help of Mayor Davis and the support of the city council, and based on how close the effort was last time.”

“I don’t utilize rent control, but I empathize with the people who need it,” said Councilman Gary La Pelusa. “Some people have trouble making ends meet.”

Gilligan feels the measure might have passed in November two years ago had it not been for the impact of Hurricane Sandy. The storm struck hard in the First Ward, with many families forced to leave their homes and move out of town temporarily. Since the question was not on out-of-town ballots, where many voted, Gilligan said the effort was hit hard.

But a public relations professional involved in the anti-rent control effort in Bayonne two years ago, disagrees.

Ron Simoncini, founder of Axiom Communications in Secaucus, believes that the proponents of vacancy decontrol, where unregulated rent increases are allowed when a person moves, would have won by a wider margin if not for Sandy.

He said that individuals who most likely evacuated during were those who are the most mobile, and more likely to be in favor of vacancy decontrol rather than rent control.

Two years ago was a learning experience for the fledgling rent control supporters; they’ve taken away a lot of lessons from the previous campaign.

This time, an explanatory statement has been included on voting machines, and on the ballots, something that was not in place last time.

Gilligan said his group will work harder to get the ballot measure passed. But beyond pledging that more letters to the editor would be written, he would not elaborate on what those additional efforts would be.

“The BTO is discussing what to do,” La Pelusa said. “How they’ll promote it.”

La Pelusa did say that a strong volunteer drive has been launched, signing up “hundreds” to promote their cause.

Gilligan blamed the defeat two years ago on an unidentifiable, silent opposition which he said shelled out tens of thousands of dollars to win.

“They spent $100,000 campaigning against us,” he said. “It was never clear who they were. Some landlords are pro-rent control. But the people who campaigned against us last time were primarily out-of-town developers, not in-town landlords.”

Simoncini said he knows who campaigned against rent control in 2012.

“It was a group of property owners,” he said. “Realtors also had a program that we were aware of and we supported. You’ll see organized opposition from the Realtors or apartment owners, or both, again.”

La Pelusa also said that big money was behind the opposition two years ago, and he said some of their actions were reprehensible.

“It’s disgusting what Realtor groups tried to do last time,” he said. “[They had ads of] of people working in the shadows and pictures of drugs. And we've not had that in Bayonne in rent control for 40 years.”

Simoncini contends what’s reprehensible is what he sees as an effort by rent-control advocates to seize clout within the city.

“I see this movement as an effort to gain political power against the interests of the people,” he said. “And I think it’s deplorable.”

Gilligan feels the time is right now for the change, with many of the supporters of the Davis campaign also rent-control advocates.

“We became an issue on the agenda,” he said. “The previous administration was anti and now the council and mayor, we are working with them.”

The change from the old rent control to the vacancy decontrol was made four years ago by a City Council vote during the administration of then-mayor Mark Smith, BTO members said.

Simoncini does agree with Gilligan that with the current municipal government the winds have shifted, and it will take a stronger campaign for vacancy decontrol supporters to win again.

“The political climate in Bayonne has evolved since that vote,” Simoncini said. “I think it’s more difficult now to create any momentum because the local leadership has changed.”

Contentious few years

Gilligan contends that many tenants were displaced over the last couple of years, maybe hundreds.

La Pelusa concurred, saying some landlords intentionally made life difficult for tenants so that they would move.

 “I’ve gotten calls. On some construction projects, they’d take out the sink and leave it out for months,” he said. “With rent control you can actually go back to the board of rent control and explain this. Without rent control where can you go to talk about stuff like this?”

Simoncini disagrees with this assessment, saying it is totally untrue that landlords intentionally force out tenants once rent control is lifted.

“I have never heard of even a [single] case being brought,” he said. “No one in the state of New Jersey has heard of anyone being charged with it. There’s never been a legitimate case.”

As for the theory that landlords won’t fix buildings under rent control because they are earning less and cannot afford to make improvements, La Pelusa doesn’t buy it.

 “A lot of those buildings were purchased when there was rent control and the landlords kept them all these years,” he said. “So it kind of takes that argument away.”

Simoncini takes the exact opposite tack. He says that rent control keeps landlords from upgrading their properties, and that vacancy decontrol encourages such improvements.

“You can pick out the apartments improved in the last two years since vacancy decontrol,” he said. “So how come those apartments didn’t get improvements before?”

Positive expectations

“We expect to win,” Gilligan said. “It’s so popular an issue. There’s no one fighting us on it.”

“Now, we just need people to show up and vote,” La Pelusa said.

Gilligan believes that rent control is a much larger cause than just providing affordable living spaces.

“It’s bringing back the quality to Bayonne. Rent control is bigger issues,” he said. “It has to do with businesses, the school system, and the general quality of life; that’s the general consensus. That’s the evolution we’re finding.”

Simoncini disagreed, saying vacancy decontrol is what makes a city flourish.

“It improves tax collection, improves municipal stock, reduces service calls, and encourages new residents to move into good-looking properties.”

The voters will decide on Nov. 4 which side will win.

 

E-mail joepass@hudsonreporter.com
Comments
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Seriuosly concerned
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September 25, 2014
Sorry, i was on a little of a rant and forgot to mention some of the important issues and realized i had a couple grammaitical errors as well. One of the problems with a cpi increase every year is that when my taxes jump over $1000.00 a year, adding $5 to someones rent isnt covering anything at all not to mention increases with every other expense associated with a property. Year after year we incur thousands of dollars of increases yet we are limited to a 1 or 2 percent increase that we can raise the rents. And then there was the issue mentioned about landlords not repairing buildings that are in rough shape. If i had a building that needed some major repairs or renovations, lets say for numbers sake it cost me $50,000.00 which is a very realistic number considering the many things that can go wrong and require repair. According to rent control rulings i could only raise the rent no more than 10% of there current rent for a certain time period, which in my units is just about $50. That means i only have to wait 1000 months or 83.3 years to recoup the money i am putting in to it and hope that in 83 years nothing else in the building go wrong to where it would require repairs. Gilligan can you show me where any of this adds up and a land lord makes out with these buildings ? Most of these buildings are investment properties and should make you money, not cost you money. Rent control in my opinion is illegal and should be done away with, who is anybody to tell you what you can and can not do with your own property. If the city would chip in and pay my taxes or contribute in any way maybe i would change my views but we know thats not happening so....
Joe P
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September 25, 2014
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Seriously concerned
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September 25, 2014
Im sorry but after seeing Ed Gilligans comments i had to respond. I am definitelty going to assume that he does not and never has owned a rent control building, because if he did he would see how ludicrious some of his claims are because i know first hand. I own a building downtown bayonne that happens to be right next door to where i live. The reason i own it is because i got tired of the junkies and crack heads " not saying that any or all people in rent control are " hanging out dealing drugs, drinking , smoking, vandilizing and damaging my property that i payed a lot for, and i mean phisically fistfighting and slamming people against my vehicles and doors causing expensive repairs to be needed. It was such a problem i was considering moving, not to mention the phisical shape of the building which in everyway resembled a crack house in harlem, a front door hanging by one hinge to where tennants had to kick the door to make swing to gain entrance, the wonderful graffitti on the floors and walls and the o-so beautiful broken windows, cracked and peeled paint over the entire building and the massive overhang that was meerly hanging on by a nail. I dont know how the city allowed this " thanks to the well oiled rent control system" but for some reason this was acceptable. So Gilligan, you tell me how are we suppossed to afford a place like this with the 1% increase that i can do every year with rent control. My rent roll when i purchased the building , and this can all be verified, was $2,300.00, my taxes are $8,900.00, my insurance is $3,800 a year, water is around $4,200 a year. All of these operating costs equal up to the rents i am collecting. Now here comes the kicker, i pay around $3,300.00 a month for my mortgage on the place. Of corse this doesnt add up, why would a lose $3,000.00 a month on something. THANK GOD FOR DECONTROL. By getting the shit out and decontroling the building i was able to fix the entire building, raise the rents on my renovated units " its now one of the nicest on the block" and give my remaining and future tennants a beautiful safe inviorment that now feels like a home instead of a crack den. The whole system is broken and sucks. If you are so concernened about the conditions of some of these buildings and want the ones who can not afford it to repair them, then maybe you should come out of your pocket and put up the money, or better yet get the city to pay for the repairs if they want to start butting in there noses again. Im tired of all the nonsense that goes on in this town, you wonder why everyone you talk to in town wants nothing more than to be able to live somewhere else. I can go on forever about all of this nonsense but have better things to do with my time.....
Joe p
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September 25, 2014
A