Passaic City Council adopts 3% rent cap with vacancy control after hours of public testimony

Passaic City Council on Sept. 2 passed an ordinance amending Chapter 2-31 of the city code to cap annual rent increases at 3% and to apply that cap when rental units become vacant, a policy commonly called vacancy control. The measure passed on a unanimous roll call vote by all seven council members.

The ordinance, listed in the meeting as proposed Ordinance 24-94-25, also requires landlords to file rent information with the city and preserves mechanisms for landlords to seek higher increases through existing hardship and capital-improvement provisions, according to the text presented at the hearing.

Why it matters: Proponents said the change will stabilize housing for long-term renters, veterans and survivors of domestic violence who described being priced out of Passaic since the pandemic. Opponents, including several landlords at the hearing, warned that limiting increases after vacancy could discourage investment in older buildings and make needed renovations unaffordable without a clear, predictable process for approving higher rents to cover major repairs.

At the hearing, dozens of residents and advocates addressed the council. Michael Kreitenberg, who said he manages many downtown Passaic apartments, warned the council that removing vacancy decontrol could leave owners unable to finance costly turn-over repairs in older buildings. “Old structures require a tremendous amount of attention and care,” Kreitenberg said. “If there’s not a decontrol upon vacancy of the…