Prospective renters aiming to secure an apartment in a group of luxury buildings in Hoboken, New Jersey, will find offerings like kitchens with granite countertops and new energy-efficient appliances, wall-to-wall pristine hardwood floors, terraces outside their windows, perhaps a pool deck right outside their door, and even a dog grooming station.
What they won’t find is affordable housing.
Three developments in the 1-square-mile city just across the Hudson River from Manhattan — VINE, Park+Garden, and Artisan on Clinton — have rented strictly market-rate units since opening their doors nearly 10 years ago. Today, those apartments range in price from about $3,000 a month for a one-bedroom or studio to more than $6,000 a month for larger three- and four-bedroom apartments.
Now, after a decadelong legal battle, a Hudson County judge has ruled the developments are in violation of Hoboken’s affordable housing ordinance requiring any building with more than 10 units to set aside 10% of them as affordably priced for low- and medium-income people. Judge Joseph Turula said the building owners cannot rent any new market-rate units until they add a set number of affordable ones.
“That's in place until they have leased up all the affordable units,” said Josh Bauers, director of exclusionary zoning litigation at the nonprofit advocacy group Fair Share Housing Center, which brought a lawsuit against the property owners in 2012.
The one exception, Bauers said, is for existing tenants who are renewing their annual leases.
Kevin Coakley, a partner at Connell Foley, the law firm representing the developers, told Gothamist they will appeal the judge’s order.
The Artisan on Clinton St. in Hoboken.
The protracted litigation is one of many contentious court fights over affordable housing in New Jersey, including in towns such as Millburn, Summit and West Orange. Last week, Fair Share Housing filed legal challenges against 16 towns, claiming they were violating state law by not putting forth reasonable plans to build affordable housing in their communities. The advocacy group has asked judges to revoke provisions that protect those municipalities from lawsuits brought by developers.
Joseph Della Fave, who was a member of the Hoboken City Council in 1988 when the ordinance was passed, said it was “tragic” that the case against the properties had taken so long, but called the judge’s orders “better late than never.”
“[The developers] evasion and avoidance of this, you can only say it's to contribute to their bottom line and nobody else's well-being,” he said.
Turula ruled VINE must add 13 affordable units, including at least two three-bedroom and eight two-bedroom apartments. Park+Garden must provide 21 affordable units, including at least four three-bedroom and 12 two-bedroom units. And Artisan of Clinton must add six affordable units, with four being two-bedrooms and one a three-bedroom.
Della Fave said the larger apartments will allow families to occupy them at affordable rents.
The Park+Garden residential development in Hoboken.
In each building, the judge wrote, no less than 25% of the affordable units must be affordable to low-income households, and the remaining 75% affordable to moderate-income households. According to state affordable housing rules, low-income households are those making less than half of the region’s median income, while moderate households make less than 80% of it. For a family of four in Hudson County, 50% of the median income is about $63,000 a year and 80% is $127,000 a year.
The case originally involved a fourth Hoboken building, the Harlow, another luxury property in the city, which features a roof deck pool with views of Lower Manhattan in the distance. In December, that property's owners settled with Fair Share Housing and agreed to add 14 affordable units to a separate property being built.
Last week, Hoboken City Council President Phil Cohen said the Council voted to approve the development details from the Harlow settlement. He said it was unfortunate the other property owners seemed determined to continue their legal fight.
“ I think it's a reflection of the profits that can be made in the real estate in the New York area,” Cohen said.
Hoboken Mayor Ravi Bhalla said he hoped the developers would ultimately add affordable housing to their properties.
”You have two situations," he told Gothamist. "One situation where developers don't seem to be adjusting to the current landscape and [seem to be] resisting compliance with the law. And then you have other developers who are working cooperatively with the city to meet their obligations to create affordable housing."
Coakley said his clients have already filed a motion to stay Turula’s orders. It argues that forcing them to convert units to affordable housing while they continue to fight the case could create logistical problems if his orders are ultimately overturned.
“Basically we're saying rather than gum this up with all of these events that are very hard to undo, stay the [judge’s] action until the court rules on the appeal,” Coakley said.
If a stay is not granted, Bauers of Fair Share Housing Center said the developers must begin adding the affordable units over the next few months.
“The order has gone into effect and they have to comply with it,” he said.
