Passaic City Council Advances 3% Rent Increase Cap And Stronger Tenant Protections

The Passaic City Council passed the first reading of a new ordinance on Tuesday night that would lower the city’s rent increase cap and eliminate vacancy decontrol, marking a pivotal shift in tenant protections.

This move follows months of organizing by tenants, housing groups, and community advocates, who rallied outside City Hall ahead of the council meeting to demand stronger safeguards against a growing housing crisis nationwide.

“I think we’re moving in a good direction. This is a historic moment. This is the first ballot initiative that I’ve heard of in many years in Passaic, and we’re really happy. And the only way this was possible was because the tenants were organized, and because we organized in our community spaces every week for the past year and a half,” said Maria Montesinos, an organizer with Make the Road New Jersey, before the city council meeting.

The city’s current 6% rent increase cap passed in February, which advocates say was an already-high number that exceeded local market trends from 2021 to 2023. The cap was previously set to 8%, with increases as high as 20% for some below-market units.

Advocates argue that the current ordinance’s vacancy decontrol provision allows landlords to hike rents to market rates whenever a tenant moves out, which weakens rent stability. They say ending vacancy decontrol is essential to protect all tenants and close a loophole that lets landlords significantly raise rents between occupants.

The proposed 3% rent cap will put over $4 million a year back into Passaic renters’ pockets and help boost the local economy. This would help protect over 4,000 renter households from homelessness, advocates said.

Community groups like Make the Road New Jersey collected more than 1,500 signatures and continue raising more signatures for the cause. Montesinos stressed that many families continue to struggle as rent consumes their income, forcing tenants to work multiple jobs while living in poor housing conditions. 

“It’s still not enough for tenants because many families in Passaic are working-class families, so they only earn minimum wage times 40 hours. A lot of our attendants have to work double jobs, and that just covers the cost of the rent, and nothing else. They were not able to put food on the table, and even if they wanted to pay out of pocket to fix their own apartment conditions, it’s nearly impossible,” Montesinos said.

Around 80% of renter households in Passaic are considered rent-burdened, meaning they spend at least 30% of their income on rent. Evictions in Passaic County have jumped in recent years, from 2,652 filings in 2021 and 6,745 in 2024, with corporate landlords driving displacement for many residents. 

At the rally, residents shared stories of hardship, including rapid rent hikes, broken living conditions, and fears of displacement. Many tenants have faced broken floors, falling ceilings, and neglect from their landlords.

Antonio, a 23-year-old living in Passaic, expressed concern about how rent has become untenable for himself and his students’ families. 

“I’m planning to be a teacher for Passaic public schools, and I have been a [substitute] for Clifton and Passaic. And I saw firsthand [how] some of the students struggle, having to leave school early, or being tired because they have to work and having to take a part-time job,” said Antonio, who asked that his last name not be used.  

Another tenant named Eva, who also did not want to provide her last name, shared how she has experienced ongoing unsafe living conditions in her home. Despite ongoing issues in her apartment, such as a broken heater, unsecured windows during the winter, and rat infestations. Eva’s landlord has failed to make necessary repairs, and with the current state of the economy, Eva is struggling to keep up with rent and maintain stability.

“Please listen to us and support us and the community. I hope the mayor can help us with his votes, and in this moment that we are living in, where each year they have raised the rent, we hope to count on their support,” said Eva, translated from Spanish.

Tenants, especially those in immigrant and working-class communities, hope the city’s new rent cap will not only address immediate affordability concerns but also bring longer-term housing justice to Passaic. The ordinance will be put up for a final vote on Sept. 2.

“This would mean they have a better, brighter future, and they won’t have to worry as much about rent and all that stuff. I would just let them know that they should vote yes, not just as a community, but it has an impact on everybody, teachers, students, and overall, the working class,” Antonio said.