Does Asbury Park Need Rent Control?

Over the past few months, more than one landlord in town has pulled me aside and asked, “I heard you want rent control, is that true?”

My response to this question has been that I do want to consider a rent stabilization or rent control ordinance. Why? It should be no secret to anyone living in Asbury Park over the past five years that housing costs have significantly increased. This has put intense pressure on many families, particularly those families that are living at or near the poverty line (at least 30% of our citizens). My fear is that if redevelopment continues along its current course, we will be flooded with even more land speculators who will buy properties at inflated levels, hoping to flip them at even more inflated levels. The end result of this speculation cycle will be ever-increasing rents and massive gentrification of neighborhoods.

A well-crafted rent stabilization or rent control ordinance would curb this and create a more stable and healthy marketplace. Such an ordinance would show that we want landlords that are in Asbury Park for the long haul. Their profits would be steady and long-term. It would also create a more stable situation for families already living here and would create a greater abundance of affordable rental units for families that want to move to Asbury Park.

As I have researched and discussed this issue, I have heard many arguments against rent stabilization or rent control from landlords with large apartment buildings. None of these arguments have been informed by the facts. I have also heard from the smaller landlords telling me, “Jim, I put my life-savings into the old Victorian house I bought and I’m spending thousands to fix it up. We have a carriage house in the back and we rent out the apartment to help cover costs. If we’re limited in what we can charge, we won’t survive.” You don’t have to worry. Most likely, any ordinance we would consider would not impact you. Why? In most cities, rent stabilization or rent control ordinances only impact buildings with multiple units.

For those of you who feel that “rent control is absolutely wrong for Asbury Park.” Are you sure you know what you are talking about? Are you talking about strong rent control, moderate rent control or restrictive rent control? Do you know the differences between rent control and rent stabilization? Are you basing your arguments on your understanding of rent controls in NYC - controls that were put in place during World War II and are unlike ANY other rent controls in the entire country? Does the rent control you’re thinking about have vacancy decontrols or recontrols? Does the rent control you are thinking about have increases based on the consumer price index, inflation, property upgrades, a combination of these? Do you know which of the landlord’s profit streams – operating profits, tax-write offs or capital gains - rent control impact most?

What I am proposing? First, let’s get the facts on how rent stabilization or rent control would impact our community. To this end, the Asbury Park Affordable Housing Subcommittee has requested that the governing body invite Mr. Connie Pascale (Legal Services of NJ), one of the leading experts in the state on rent stabilization and rent control, to make a presentation to our community at the May 17, 2006 City Council Workshop Session (6pm start time).

Once we have the facts, then we, as a community, can consider what is best. I encourage each of you that are interested in this topic to email me any questions you would like Mr. Pascale to address in his presentation.