HUDSON COUNTY, NJ — While Hoboken and Jersey City now have among the highest rents in the country — averaging more than $4,200 per month as of this summer — several large-scale property owners recently found out that rent the increases they're trying to give tenants may run afoul of city or state guidelines.

The latest luxury building to fall under a municipal rent control law — limiting increases to a few percent per year to keep tenants stable — is Portside West, one of a pair of luxury towers in Jersey City offering views of the New York City skyline.

The tenants of both Portside towers, constructed in the early 1990s, recently formed tenants' associations and have been fighting large rent increases this year, they have said.

They've also brought to light problems such as flooding and broken elevators that were detailed in a New York Post story in August.

The tenants began fighting for rent control last year and got a boost in July, when they found out that in the next town over, Hoboken, a complex owned by the same publicly traded company — Equity Residential — was newly determined to be subject to Hoboken's 1973 Rent Control Ordinance.

The Jersey City tenants believe that both Portside towers fall under their own city's ordinances.

Back in the 1990s, New Jersey law allowed builders to get a 30-year exemption from local rent control laws, but they had to file documentation to get that exemption.

Recently, owners of several area buildings have been unable to find the exemption.

Earlier this year, tenants of the Rivington complex in Hoboken, owned by Equity residential, were faced with large increases of 20 percent or more, pushing rents beyond $4,000 per month. One tenant, a mom who had kids in the local public schools, worried she wouldn't be able to afford her increase. She and others began finding out more about local laws. READ MORE: Hoboken Rent Increases Are Driving Tenants Up A Wall

Hoboken had been subject to a series of suspicious fires during condo conversions in the early 1980s and currently has a tenant advocate on call to answer renters' questions, as well as experienced volunteer tenant advocates who have fought to strengthen protections.

Now, Equity Residential has been told that they must roll back some increases in a Jersey City building, too.

"Regarding Portside, per city confirmation, one of the buildings became eligible, due to the property age, for rent control at the end of August," said Marty McKenna, first vice president of investor and public relations for Chicago-based Equity, last week.

He said, "We are working with residents who renewed after the effective date to make any appropriate adjustments. The other building will continue to have an exemption to rent control through the end of 2027."

A letter obtained by Patch, sent to the residents of Portside West at 100 Warren St., says, "The Rent Leveling Bureau has determined that 100 Warren was exempt from rent control through August 24, 2022..to that end, if your renewal lease was effective after Aug. 24, 2022, you will be receiving an amended lease with an adjusted rent increase of 4 percent, along with the appropriate credit for September and October rent. Any pending renewal offers issued after August 24, 2022 will also be amended."

One-bedroom apartments in Portside are currently advertised as starting at $3,042.

"Going forward," Equity added, "all renewal increases will be issued consistent with the rent control requirements."

However, a Portside tenant said this week that he and other tenants are still presenting evidence to the city about the rents in both towers. Among the issues, they are challenging the date for the exemption's removal, based on when the buildings were constructed.

One Portside tenant said that since some Jersey City apartment buildings are subject to PILOTs (payments in lieu of taxes) tied to the rents — money that goes straight into Jersey City coffers — the city stands to lose money if it enforces rent control in the buildings, creating a potential conflict of interest.

The problems have become confounding to those on all sides of the rent equation.

Landlords who lowered rents to lure tenants back to cities during the pandemic are now trying to raise those rents, in some cases beyond what even the state deems "conscionable" (usually 25 percent or more, tenant advocates say).

Longtime tenants who budgeted each year for steady increases have been shocked by the spikes, with one telling Patch she feared having to uproot her family because of a huge increase.

Tenants have agreed on one thing: The rulings on the Equity buildings may be the tip of the iceberg.

There may be more surprises to come, both for other landlords who are subject to rent control and for tenants who don't have the money to fight high increases in court.

A case earlier this summer in Union City, also in Hudson County, set a recent precedent for other luxury property owners about rent control exemptions. READ MORE: Rents In Jersey City, Hoboken Highest In Country: Are They Legal?

Read earlier reporting on this issue in Hoboken Patch below, and leave comments below.

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