Passaic Enacts Sweeping Rent Control Ordinance, Capping Increases At 3%

In a unanimous vote, Passaic City Council approved sweeping changes to its rent control ordinance, capping annual rent increases at 3% and ending a practice that allowed rent hikes when units became vacant.

The measure, passed Tuesday night, comes after years of tenant organizing and rising housing costs across the city. It is slated to take effect Sept. 22 and is expected to impact more than 9,800 households, according to immigrant rights group Make the Road New Jersey. They estimate that the ordinance will protect at least 4,000 families from possible homelessness.

“There is a housing crisis in Passaic, and this ordinance is a real response to it. After my experience, I’m proud to have worked with Mayor [Hector] Lora, Council President [Gary] Schaer and the City Council as a member of Make the Road New Jersey to help keep fellow Passaic residents in their homes,” said Hugo Carrillo, a member of Make the Road New Jersey, in a press release.

Carrillo, a single father who has lived in the city for two decades, recalled being forced from his home when his rent jumped by $1,000 overnight.

“We had no choice but to leave the only home my 6-year-old son has ever known. In total, three of the five families in that building also left. We have had to downsize from a 1-bedroom apartment to just renting a room in an apartment. That’s why I started organizing in my community,” he said.

From 6% to 3%

Passaic introduced a rent stabilization measure last year, allowing increases of up to 6%, the first effort to regulate rents in more than two decades. But tenants said it fell short of addressing displacement pressures. They launched a tenants’ union, collected more than 1,500 petition signatures for a referendum, and pressed city leaders to revisit the issue.

The new measure makes Passaic only the fifth city in New Jersey to eliminate “vacancy decontrol,” a policy that allowed landlords to reset rents without limits between tenants. Along with the 3% cap, the revised ordinance requires landlords to provide tenants with compliance information on property code and building registrations.

Lora called the ordinance one of the strongest rent stabilization packages in the state.

“With this ordinance, we are proud to take bold action to protect working families from displacement, stabilize neighborhoods, and make sure the people who built our city can afford to stay here,” Lora said in a statement.

Mounting Eviction Crisis

The vote comes against the backdrop of a worsening housing crisis in Passaic County. According to Make the Road New Jersey, court statistics show eviction filings rose from 2,652 in 2021 to nearly 6,750 in 2024, with 80% of those filings involving minority tenants. Families earning more than $50,000 now make up 40% of households facing eviction.

“To afford an average two-bedroom in Passaic, families must earn about $5,000 a month. Which explains why evictions in Passaic are more heavily represented in higher-income ranges than the rest of the country, ” said Make the Road New Jersey in a press release.

The ordinance drew broad support from labor unions, legal aid organizations, and housing policy groups, who have rallied at city council meetings to support the ordinance’s passage.

“Rent stabilization is a crucial tool in preventing displacement and protecting existing affordable housing options for those who have already sacrificed so much for our country,” pointing to a rise in veteran homelessness,” said Jessica Kitson of Volunteer Lawyers for Justice.

Polling suggests broader support for rent protections across New Jersey. A Rutgers-Eagleton survey earlier this year found that 61% of state residents would favor adopting statewide rent control.

“By taking action to curb soaring rents and prevent homelessness, Passaic is improving its economic stability. City leaders deserve real credit for adopting this common-sense measure,” said Al-Tariq Witcher of the Fair Share Housing Center in a statement.