PARK RIDGE—Residents at the James, the 240-unit, five story luxury mixed-use development at 87 Madison Ave. on Kinderkamack Road that began rentals last summer, have told Pascack Press that the landlord has hit residents with new rent leases that call for up to 24% annual increases, adding as much as $600 to their monthly cost of living.
Several residents told Pascack Press that they find the increases “unconscionable” given that they were some of the first to sign with the new luxury complex — and they far exceed rent increase guidelines proposed even in New York City.
In January, Mayor Keith Misciagna lauded The James as “completely 100% occupied, which was a surprise for both the developer and the borough.” (See “Misciagna at mayors’ breakfast: The James leases all 240 units,” Pascack Press, Feb. 4, 2022.)
The James, named for the late Park Ridge native James Gandolfini, star of “The Sopranos,” offers studios from $2,734, one-bedrooms from $2,884, and two-bedrooms at pricing the management company says prospects should enquire about.
The landlord, Claremont Development, has an onsite management company, Bozzuto Management, that handles on-site residents needs, complaints, and building and grounds maintenance.
Reviews on the company’s website are self-selected and positive, with several residents and prospects saying how impressed they are with the facility and amenities. The Bozzuto Group says it is “devoted to crafting extraordinary experience for itself and its clients.”
Local officials told us that the owner is in talks to sell the building, but details could not be confirmed by press time.
In the May 2 Pascack Press, Veris Residential, a property-management consultant, listed three open positions in leasing and maintenance at The James.
Over the past several weeks, some residents have reached out to the borough, Misciagna, and the management company after receiving large annual rent increases approaching $600 to $800, said several residents who spoke to Pascack Press.
Mayor says residents might sue
Misciagna reached out to Bozzuto Management and Claremont Development’s Managing Partner Richard Sciaretta to discuss residents’ concerns on April 29.
He said, “I am writing concerning the alarming rent increases being reported by your tenants, Many of the families who moved into the James last year are now approaching the end of their leases and thus receiving information for their year 2 rent increases.”
Misciagna said, “While I understand the housing market is different than it was a year ago and the market may allow for increases to your new residents, the proposed increases for your current residents that are being reported to me are unreasonable and unconscionable.
The mayor said the borough administrator reached out to Sciaretta almost two weeks prior “and was told that they would look into the matter; we have not received any feedback.”
He said, “It is my understanding that a computer program is being used to raise rents to what the software feels the market can bear. This system does not take into account the people who have moved into your building and our town hoping to put down roots only to find out that they may not be able to stay given these unreasonable increases.”
He said, “While I am aware that costs have increased in all sectors, including housing, with a CPI increase of nearly 8%, that does not account for 10%, 15% or over 20% increases. The feedback I am getting from residents is that they will not pay those unreasonable increases and are planning to let the courts decide if these increases are indeed unconscionable.”
Misciagna said, “That is not a situation the borough relishes and I would imagine one that Bozzuto or the new owners of the building would also like to avoid.”
He said, “I respectfully ask that the rent increases on current residents be reviewed and adjusted to be more in line with a reasonable increase. I am happy to meet with your company, the currents owners and/or the contract purchasers to discuss this situation in more detail.”
The same day, Misciagna emailed the property’s residents who had received rent hikes and urged them to speak to Bozzuto Management onsite to request a lower rent price quote.
He said several residents “were successful in getting a new, much lower quote after expressing their concerns to Bozzuto.”
Misciagna said in part, “If you have legal questions about tenants’ rights you should contact an attorney as the borough is unable to provide legal advice. I want everyone that wants to stay in our great town to be able to do so and I am doing all I can to advocate on your behalf.”
Misciagna added he’d had several discussions with The James’ ownership “over the past few weeks and they are committed to re-evaluate the increases with any resident that speaks with them.”
We emailed Misciagna to get more information on the lowered tenant rents he cited in his email but did not hear back.
On May 2 we reached out to Chintimini Keith, vice president of corporate communications and marketing for The Bozzuto Group, with customer complaints, and have not heard back.
One tenant, who requested anonymity, sent us copies of two rental leases that showed one new one-year lease up about 16% and another 18-month lease up 24 percent.
“As renters, we have no rights to how much they increase our rent, [and] we all feel completely taken advantage of and are stuck in a rent-gouging situation,” said the lessee.
Noting Misciagna’s April 29 email that advised them to meet with Bozzuto Management to request adjustments to higher annual leasing rates, she said, “We received an email Friday evening from the mayor’s office. It was essentially very vague and apparently, they are still giving each person a different rent increase.”
One resident complaining about rent increases told Pascack Press how she discovered the increased rates: “Recently, I was walking my dog and ran into a neighbor and found out the building management will be raising our rent 15%–24%, which in my opinion is completely unlawful and taking advantage of the people who are currently living here.”
She said, “I understand there is inflation and rent increases are inevitable, but this rent increase is absurd…”
She added, “There are many people scrambling, switching apartments, moving out or some people like me have no idea what to do or any place to go. None of us can afford a $600-plus monthly increase.”
She said those tenants with large rent increases had reached out to Bozzuto Management, who allegedly told them that they can get new renters in who will pay the increase, “therefore it’s a viable increase.”
The James’ resident noted New York City’s Rent Guidelines Board recommends maximum annual rent increases to between 2.7% and 4.5% and two-year leases to increases of 4.3% to 9%.
Park Ridge has no rent control ordinance. A local official said even with rent control, the law would not be retroactive and would not help current renters.