Hammonton News Article published Apr 23, 2008 Town council is approaching the rent control issue in the wrong way
Hammonton Town Council on Monday is expected to authorize a plan that would start phasing out the community's rent-control policy.
Its motivation, however, appears misguided.
The municipality adopted its rent control policy in 1976.
The measure prohibits rent increases that exceed the change in the Consumer Price Index -- a measure of inflation -- unless a landlord receives council approval. Landlords are allowed to reset rental rates at true market value once a unit becomes vacant.
The debate over rent control has raged for years.
Proponents say it allows those who have low or fixed incomes to continue to live comfortably in one community while letting landlords realize a reasonable profit. Opponents argue the strategy backfires, leading to reductions in the quantity and quality of available housing.
There are valid arguments on each side, and they'll continue to divide tenants, landlords, legislators and economists.
But Mayor John DiDonato and the Town Council majority don't appear to be basing their decision to end rent control on traditional arguments.
Instead, DiDonato has expressed concern that rent control has caused developers to shy away from constructing new apartment buildings in the municipality.
That's an overly simplistic argument.
New-apartment construction has slowed across the country, even in areas where rent control isn't in effect. National Real Estate Investor magazine attributes the slowdown to supply gluts, a growing number of single-family homes available for rent and the subprime mortgage crisis.
Assuming DiDonato is correct, however, Hammonton wouldn't have to eliminate rent control to solve the problem.
It could follow the lead of other communities, which apply rent control ordinances only to older complexes or those of minimum sizes.
DiDonato also has said that some landlords -- limited to what they can charge for rent -- have postponed maintenance and allowed their buildings to fall into disrepair.
The answer to that problem -- at best an aesthetic concern, at worst a health and safety risk -- rests with code enforcement, not free-market rental rates.
Under DiDonato's strategy, unresponsive landlords would be rewarded at the expense of residents who can least afford to be hurt.
Opponents also have raised legitimate concerns about whether council's move could affect the municipality's ability to comply with state affordable housing requirements or eventually lead to a spike in the town's homeless problem.
Indeed, rent control is a complicated and emotional issue. There are valid arguments on each side.
Members of Town Council may think they're doing the right thing. It just seems they're doing it for the wrong reasons.
The Hammonton Democrats agree with the Hammonton News and we believe this issue deserves a lot more studying. We disagree with the Republicans because we feel the Rent Control Ordinance needs some more tweaking and a compromise should be sought.
