Stopping Redevelopment or Protecting Rising Rates in New Jersey? Rent Control Continues to Spark Debate in Phillipsburg

PHILLIPSBURG, NJ - The approval of a rent control impact study passed 3-2 at the Phillipsburg Town Council meeting on April 24 in which residents are questioning public transparency as to whether or not the town has their best interests at heart.

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Phillipsburg hired the Philadelphia-based planning firm 4ward, Inc . to analyze prospective impacts of instituting a rent control ordinance in the town. In a submitted proposal dated April 8, 2024, it reads, “To provide the aforementioned services at a cost of $10,900.”

This hefty amount going to a third-party study has left a sour taste in the mouths of many residents while also splitting hairs among republicans and democrats who sit on the Phillipsburg Town Council. The council’s two democrats, Lee Clark and Keith Kennedy, were allegedly not informed about the rent control impact study until they saw the council agenda prior to the upcoming meeting, raising many concerns from residents in regards to public transparency.

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“The impact study, when I read the resolution, is really not an impact study,” stated Chris Pfefferle, a resident of Alexandria Township who owns property and renovated properties in Phillipsburg. “What they are saying is that they are going to give you three different ordinances to pick from to do rent control and I don’t think any of those are going to be a good option for anybody here.” Pfefferle addressed that it doesn’t matter whether you’re a democrat or a republican, but it does matter to keep the growth path in Phillipsburg to bring money in and re-invest in properties.

The rent control impact study states that the Phillipsburg Town Council has recognized a need to study the impacts of implementing a rent control ordinance. It further explains that a contract for such services may be awarded without competitive bidding by reason that such services constitute “professional services” which are services rendered or performed by a person authorized by law to practice a recognized profession. It continues to say, “Whereas, the town council finds it to be in the best interest of the Town of Phillipsburg to authorize said work, which is not subject to public bidding.”

The project fee structure is shown in four phases and are as follows:

• Phase I: $5,8000 for the examination of the short- and long-term impacts of rent control and the identification of rent control’s influence on property value.
• Phase II: $1,500 for the study of best-case examples of control ordinances based on third-party research.
• Phase III: $2,400 for the rent control ordinance recommendation and administrative structure.
• Phase IV: $1,200 for the final report and presentation.
• A total of $10,900.

Phase I of an April 8 letter to Phillipsburg Mayor Randy Piazza, Jr. from 4ward, Inc. says the examination of the short- and long-term impacts of rent control will be based on third-party research. It will include interviews with New Jersey-based municipal rent control administrators while also identifying the potential short- and long-term impacts associated with municipal rent control programs.

“Normally what you do is present a problem statement and they come back with recommendations,” resident Carol Deagan explained. “This looks to me like they have already been told the rent control and are just giving the pros and cons. In the long run, you’re going to be wasting your money. By the way this is written, we’re not going to get what we really need. We are talking about the $11,000 budget and this is $11,000 we don’t have.”

The Phillipsburg Town Council was presented with a draft of a current 1982 Lopatcong Twp. rent control ordinance possibly to be used as a starting point for the board and administration. The ordinance, adopted in 1982, impacts only complexes, not single-family or homes with less than four units. Lopatcong has a 72.6% homeownership rate, with less than 30% of their population set for rentals, per the 2022 latest census data. Their median income is $91,954. Both statistics are in sync with Warren County as a whole, including property values which both are over $300,000. The four-year average median rent in Lopatcong is $1,436 per month.

Phillipsburg’s rental situation, in comparison, is nearly 49% of the town, based on the census data. The median income of Phillipsburg is $64,130. The average property value in Phillipsburg is half of the countywide and neighboring Lopatcong Township, at just $157,000, per the 2022 census. The four-year average median rent in Phillipsburg is $1,120 per month, approximately $300 less per month than other sending towns in Warren County, and property values half that of neighboring towns.

Resident Joan Pierce spoke at public comment with a belief that the town is attempting to push out its lifelong residents. “I know landlords want to make money, but before the taxes went up, and rent went up, everyone was at a minimum, now everyone is getting greedy.” Pierce concluded, “Please do something. Us tenants here are drowning. Let’s come to some compromise for us all.”

Matt Amabile, a 26-year-old landlord in town who currently owns 25 apartments, told the council, “I say my age because I see myself being here for a long time, investing here and helping the area grow.” Amabile said he grew up in Phillipsburg, left when he was nine and came back after college. “I came back here with a dream to make this place great, and I still have that dream.” He expressed his belief that the current rent prices are “ridiculous” as his apartments are at sustainable rates of a one-bedroom apartment for $1,350, two-bedroom for $1,550 and three-bedroom for $1,750 to $1,850. “Once rent increases go past $2,200, it is just greed.”

“You have Camden, Plainfield, Elizabeth, Newark, Atlantic City,” said Pfefferle in regard to NJ locations who haven’t had much success with rent control . “It’s not something that is going to help this town.” Pfefferle told the council he believes Phillipsburg is “really taking off” as he mentioned old buildings going down, new ones going up and people buying buildings and renovating them. “Rent control will put a complete stop to that.”

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