After three years and over 60 council meetings, an uproar of tenants who have taken on a multimillion dollar enterprise due to alleged systemic violations of illegal rental increases were last night met with a decision.
The Jersey City Council approved a resolution that establishes an investigatory committee into the property of Portside Towers, two residential buildings located on 155 Washington Street, which is owned by Equity Residential– a real estate company based in Jersey City.
The committee would be composed of three councilmembers, appointed by the council president, who would hold hearings and issue subpoenas to municipal departments and directors alike concerning tenants of Portside Towers.
Council Members React to Tenant Testimony
After the public comment portion concluded at the council meeting, council members weighed in on the issues presented by the tenants of Portside Towers.
“You are dealing with a billionaire landlord that does not give a crap about you guys,” said Councilman At-Large Daniel Rivera. “He is just going to keep on these…just hoping you guys forget about it.”
Dispute Over Rent Control Exemption
The crux of the legal fight is whether Portside Towers was ever exempt from rent control. In court filings, Equity Residential said the property was exempt from rent control under New Jersey’s Newly Constructed Multiple Dwellings Law, which shields buildings constructed after 1987 for up to 30 years or the length of the initial mortgage, whichever ends first.
The company did not file paperwork to be considered exempt under this law, according to municipal records under the Office of Landlord/Tenant Relations in Jersey City. In a question asking if the property fell under rent control, the real estate firm responded “yes.”
In a 25-page redevelopment plan called the Tidewater Basin Redevelopment Zone, reviewed by New Jersey Urban News, which was first adopted in November 1999 and subsequently amended multiple times, the plan aimed to transform the former industrial waterfront into a mixed-use property– which fell under rent control statute, according to municipal records.
Tenants Report Illegal Rent Hikes
Under Jersey City’s rent control ordinance, annual rent increases are capped at 4% for certain buildings with five or more units. However, tenants at Portside Towers have reported hikes up to over 40%, far surpassing the legal limit, under municipal law.
Tenants at Portside Towers have staged rallies, packed City Council meetings, and even fought management efforts to silence them. After filing a class action lawsuit seeking over $400 million in damages–including triple damages–alleging widespread violations of the New Jersey Consumer Act, the case is now being contested in the federal third circuit court of New Jersey.
City Hall Accused of Inaction
In 2023, Jersey City’s Rent Leveling Board voted unanimously that the complex must comply with Chapter 260 of the city’s rent control ordinance. Yet even after that ruling, tenants say City Hall has done little to enforce the decision–allowing the alleged overcharges to continue.
The decision last night for the special investigation committee was sparked by one councilman who took action.
“I just want to make sure that in this resolution that we are investigating, you know the breaches in the municipal code, any and all, but we specifically look into the breaches,” said Ward D Councilman Yousef Saleh, who championed the resolution forward at the waning hours of the meeting.
The committee would “hold court hearings, issue subpoenas and administer votes to take testimony,” among other forms of legal recourse for the tenants of Portside Towers, added the councilman.
Equity Residential did not immediately respond for comment and has not provided any public statement on the ongoing lawsuit.
Portside Towers Tenants Continue Fight
The Western Tower, 19 stories tall and built in 1992, and the 26-story Eastern Tower completed in 1997, have housed roughly 5,000–many of whom left amid years of soaring rent hikes, while tenant associations continue to fight for those who remain.
“I am grateful Councilman Saleh stepped forward to ensure accountability and that a lawful outcome wins the day, and I am glad our Councilman Gilmore and Councilwoman At-Large DeGise have teamed up to guarantee the laws of this city are fully enforced and the long overdue fines are finally collected,” said Kevin Weller, President of the Portside Towers East Tenant Association, a main plaintiff in the class action, and a recently nominated co-chair of the Jersey City Democratic Committee Subcommittee on Civic Engagement.
Tenant Leaders Demand Swift Accountability
The case also touches on a larger national controversy: the use of rent-pricing software that utilizes some artificial intelligence. Equity Residential uses RealPage, a platform that collects confidential market data from landlords and recommends rent increases.
Weller has filed a separate federal lawsuit accusing RealPage of enabling algorithmic price-fixing, a practice that critics say drives rents higher by coordinating pricing strategies among landlords. The Department of Justice is already investigating similar allegations against RealPage nationwide.
“Equity Residential has broken one law after another,” said Michele Hirsch, President of the Portside Towers West Tenant Association, and also a recently appointed co-chair of the committee. “That makes the committee’s task simple. We expect quick results that finally hold this landlord to account.”