Published November 15, 2018
By Nicholas Katzban

North Arlington is limiting rent increases for older tenants to 2 percent a year, in an effort to keep housing more affordable for senior citizens.

The Borough Council last week approved the 2 percent cap on annual rent increases for any tenant over age 65, regardless of income.

North Arlington already has a 4 percent cap on all units rented to tenants of any age. However, Councilman Mario Karcic said, Social Security cost-of-living adjustments do not keep up with rising prices. This rent cap, he says, will help close that gap.

"I know there's been one this year," Karcic said of Social Security adjustments, "but generally speaking, it has not been keeping up with the rate of inflation or the rate of rent increases."

The Social Security Administration reports that its 2019 cost-of-living adjustment will be 2.8 percent, which reflects the 2.8 inflation rate for the month of September 2018, according to the U.S. Bureau of Labor Statistics.

In the past 10 years, Social Security adjustments have only bested the rate of inflation once. For some years, such as 2009-10 and 2015, Social Security had no cost-of-living increase.

"Someone who is 65 or older, they're on a fixed income," said Nina Rainiero of the Housing and Community Development Network of New Jersey. "They can't afford the rising rent. It's not fair."

Bergen County has the highest senior population of any county in the state, with the rate holding steady. Neighboring counties, such as Essex, Union and Hudson, saw the greatest decreases in senior populations between 2000 and 2010.

Fair market value on a one-bedroom apartment in the state is nearly $1,200, on average, according to a report from the National Low Income Housing Coalition. The coalition advises a yearly income of almost $48,000 to afford a one-bedroom.

By limiting rent increases to 2 percent, Karcic said, "we're narrowing that gap and trying to keep North Arlington affordable for our seniors."

The borough's rent increase cap applies to apartments in dwellings with a minimum of three units. All landlords of three-or-more-family buildings will be notified by the borough. Their increases will be monitored by the borough's Construction Department, which requires annual summaries of all rate increases from landlords.

A landlord may only increase rent on a tenant after the expiration of a lease or other rental agreement.

A tenant 65 or older who suspects his or her rent may have been raised above 2 percent after signing a renewal lease can contact the Construction Department to contest the increase.

New Jersey is one of only four states, along with the District of Columbia, that allow municipalities to enact some form of rent control, according to a study completed this year by the National Multifamily Housing Council.