THE COUNCIL SHOULD IMMEDIATELY AMEND THE NEW RENT CONTROL ORDINANCE TO EXCLUDE ALL TWO, THREE AND FOUR FAMILY HOMES.

At its April 19, 2022 meeting, the Montclair Town Council passed a rent control ordinance based on negotiation between two special interest groups - a tenant advocacy organization (TOOM) and a commercial property owners association (MPOA).   The 1000 Montclair owners of small multifamily homes were left out of both the discussion and the crafting of this very flawed  rent control ordinance.  So now, this ordinance imposes rent control on all small multifamily properties (with the exception of two and three families that are owner-occupied.) Rent Control will profoundly affect the value of all small multifamily homes with ripple effects throughout the town.

The ordinance has no foundation in facts as it pertains to small multi family homes. No research or data on these homes was collected over the years to support the "Findings" section of the new ordinance which claims that rents are going up in these units causing people to move. This is a wildly speculative statement. On the contrary, we believe the majority of owners of two, three and four family homes provide stable, below market-rate housing. We know our tenants, value our relationship with them, strive to reduce turnover as it is costly to us, and manage our properties for the mutual benefit of landlord and tenant. Applying this ordinance to small multifamily homes will disrupt a currently stable sector of the Montclair affordable housing market.

Large commercial investors have a different profile than mom and pop property owners. The ordinance is written for large property owners who have the business practices, structure and financial wherewithal to adhere to its many requirements.  Its features are onerous, costly and unfair to owners of small multifamily homes.

The restrictions and uncertainties of the law may incentivize small property owners to sell.  To get the best price for their building,  owners will sell with all units vacant so the new owners can raise rents to market-rates.  Long term tenants will have to leave and try to find another reasonably priced apartment.  This is difficult in Montclair and especially problematic if one is a senior where the rent control escalation is 2.5% compared to 4% for non-seniors. Who will rent to those over 55 if there is an equally qualified young person?  This selection process is perfectly legal. This is another unintended consequence of a poorly written ordinance that will disrupt an affordable and  stable sector of Montclair's housing.

One documented result of rent control is it leads to deferred maintenance and thus shoddy housing.  There is a revenue-expense mismatch between market-rate expenses and government imposed rent rise. The appearance of poor quality housing stock affects all Montclair residents not just multifamily property owners and tenants.

All towns surrounding Montclair have had rent control for many years. While the laws vary, six of the seven neighboring towns exclude two and three family homes from rent control; Clifton excludes six units and under. (Even New York City, with its tenant favoring rent control laws,  excludes buildings with 5 or fewer units.) Montclair should be in step with towns/cities that have time-tested rent control statutes that are working for the towns, tenants, and small property owners.