Battle Over Rent Control In Montclair Continues

MONTCLAIR, NJ — In the words of a famous, late Montclairite: “It ‘aint over till it’s over.”

On Friday, a Superior Court judge issued a temporary restraining order that will prevent Montclair from moving forward with its recently passed rent control law. The order will give opponents more time to mount a legal challenge the new ordinance, which the town council passed during their April 7 meeting.

Renters in Montclair have claimed the new ordinance is a long overdue victory for people who can't afford to buy homes. But a local property owners association has argued it's a "toxic" idea that's being pushed through during a time of crisis.

• See related article: Montclair Sees Debate Over Rent Control Amid Coronavirus

The law limits annual rent increases in Montclair to 2.5 percent for seniors and 4.25 percent for other tenants. Read the full ordinance.

Exemptions are made for:

• Units in buildings with less than four residential units

• Units for which the amount of rent is determined as a function of household income by a government program

• Motels, hotels and similar type building and buildings intended for transient use, floor space used strictly for commercial purposes in any type building, including state-licensed rooming houses

• Dwelling units rented for the first time after the adoption of this chapter are exempt, and the initial rent may be determined by the landlord, but all subsequent rents shall be subject to the provisions of this chapter

• Dwelling units exempted by state or federal law

‘STOPPING THE CLOCK’

The Montclair Property Owners Association (MPOA) and a committee of petitioners including Steven Plofker, David Genova, Suzanne Miller, Paul Weinstein and Brandon McEwen filed a lawsuit against the township on April 15, claiming that Montclair’s enactment and enforcement of the ordinance is in violation of the town’s police powers.

“Not only does this order validate our claim under the law in this specific case, it is a warning to all municipalities who, under the cover of emergency, would seek to pass politically-motivated legislation at a time when the public, both practically and legally, is deprived of its right to express itself or mount challenge,” said Charles Gormally of Brach Eichler, the law firm representing the property owners challenging the law.

Here’s what the temporary restraining order means, according to Gormally:

“As you know, we are allowed 20 days under state law to contest any new law by calling for a referendum,” Gormally told Patch. “To do that, we have to collect signatures from 15 percent of the number of people who voted in the last election in Montclair – approximately 1,100 and submit them.”

“Our concern is that under the current COVID-19 state of emergency we would be violating the governor’s emergency orders to do this and thus we are restricted in our ability to collect those signatures,” Gormally said.

READ MORE: NJ Coronavirus Updates (Here's What You Need To Know)

Earlier this month, the MPOA blasted the proposed rent control ordinance, alleging that it will end up raising taxes for local homeowners.

According to the group, owners of nearly 800 apartments in Montclair had agreed to a voluntary rent freeze for 90 days before the council passed the new ordinance.

“Montclair citizens have a long history of applying a very practical rationale — rent control does not create affordable housing — and has avoided rent controls for 47 years,” MPOA Executive Director Ron Simoncini charged. “The COVID-19 crisis is taking away from the voters the very device they need as a check and balance to bad government.”

“This ordinance is clearly driven by currying favor with a narrow segment of voters and ignores the impact it will have on the rest of the community,” Simoncini said. “Homeowners will end up paying for this in the form of higher taxes after being deprived of a meaningful chance to be heard on the issue.”

‘WE WILL NOT GIVE UP’

When asked to comment on the temporary restraining order, a Montclair spokesperson said the township doesn’t comment on issues being litigated.

However, Toni Martin, vice president of the Tenants Organization of Montclair (TOOM), gave Patch a firm reply: Rent control isn’t going anywhere.

“The Tenants Organization of Montclair was formed a year ago, and has worked tirelessly to bring some protection for renters,” Martin said. “Our diverse community has been severely threatened by rent gouging and sudden, precipitous displacement of people who have lived, worked, and brought up their children here.”

“TOOM will continue to work tirelessly to defend the ordinance adopted by the Town Council,” Martin continued. “We will not give up, we will not go away. We will continue to rely on our army of Montclair residents who rent, supportive clergy who see the moral issues involved here, supportive property owners who want the community stability rent control brings - and those public leaders who are convinced that rent control is vital for the future strength of our beloved town.”

“There is no way that we will allow a small group of local real estate people, led by a public relations executive (Ron Simoncini) who makes his living trying to quash rent control, take our ordinance away,” Martin concluded. “We know that right will prevail in the end.”

The legislation also gained support from a cross section of community members and groups, including Councilman Sean Spiller, who introduced the ordinance, and Councilwoman Renee Baskerville, both of whom are running for mayor this year.

TOOM offered the below flyer as additional background on their rent control stance.

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This article originally appeared on the Montclair Patch