Jersey City Landlord: Small Property Owners Are ‘Modern-Day Indentured Servants’

Yvonne Balcer has owned property in Jersey City for decades. She’s watched the skyline change, seen new towers rise, and paid her taxes every year without fail. But this year, when she opened her tax bill, something felt different. The increases were steep — 15.15 percent municipal, 17 percent school, 14 percent county — and she knew exactly where the money wasn’t coming from.

In a letter to the editor published by Hudson County View, Balcer lays out her frustration in plain terms: small property owners are being asked to carry the load while large developers get tax abatements and rent control protects tenants from increases. Her words have struck a chord in a city where the gap between big developers and everyday landlords keeps growing.

What’s happening

At the heart of Balcer’s complaint is the upcoming Canal Crossing development, a massive project that will bring thousands of new units to the West Side. Like many large developments in Jersey City, it comes with tax abatements — deals that let developers pay a fixed amount instead of full property taxes for a set number of years. Balcer argues these deals shift the tax burden onto people who own smaller properties, like two-family homes or small apartment buildings.

She points to the 2025 Friendly Budget, a document the state requires to show how tax dollars are spent. According to that budget, 36 percent of properties in Jersey City are exempt from the ratable base — things like schools, parks, religious properties, and government buildings. But nearly half of that 36 percent falls under an “other” category, which is where tax-abated properties, known as PILOTs, sit. Do the math, she says, and roughly one in every six properties in the city isn’t paying the same taxes as everyone else.

Those PILOT properties aren’t part of the county’s calculation when it sets tax rates, either. So when the county needs more revenue, the rate goes up for everyone else — including small landlords who can’t pass those costs on to their tenants because of rent control.

How we got here

Jersey City has used tax abatements for decades to encourage development. The logic was simple: give developers a break upfront, and the city will benefit later from jobs, new housing, and eventual tax revenue. In many ways, it worked — the city has seen an explosion of new construction, especially along the waterfront and in places like the West Side where Canal Crossing is planned.

But the trade-offs are becoming harder to ignore. PILOTs often require developers to make payments in lieu of taxes, which city officials say helps fund affordable housing and other programs. The problem, Balcer argues, is that these payments don’t go to the county, so the county sees those properties as invisible when figuring out the budget. That means small property owners end up covering more of the cost for county services — things like roads, parks, and public safety.

Rent control adds another layer. Jersey City has some of the strongest rent control laws in the state, limiting annual rent increases to the Consumer Price Index. For 2026, that means landlords can raise rents by roughly 4.1 percent — far below the 15-plus percent increases on their tax bills. Balcer says that leaves small owners with no way to recover their costs, forcing them to eat the difference or defer maintenance.

What it means for Hudson County

For residents, the fight over tax abatements and rent control isn’t just about dry budget numbers. It’s about who pays for the services everyone relies on. If you rent in a building with a PILOT, you may not see your rent spike the way you would in a non-controlled unit — that’s the trade-off elected officials point to when they approve these deals. But if you own a small property or rent from a small landlord, you might see the effect in slower repairs, deferred upgrades, or even a sale if the owner decides the costs are too much.

Balcer’s letter captures a frustration that many small property owners feel but rarely voice publicly. They’re not big corporations with teams of lawyers and lobbyists. They’re families who bought a three-family house decades ago and rely on the rent to pay the mortgage and the taxes. When those costs go up, they don’t have options — they can’t move to a more favorable tax climate, and they can’t raise rents enough to keep up.

It’s a delicate balance. Too many tax abatements could push more of the burden onto smaller owners. Too little abatement, and developers might look elsewhere, slowing new construction and the affordable housing that often comes with it. Somewhere in the middle, there’s a fair system — but Balcer and others like her aren’t sure this city is interested in finding it.

What people are saying

Balcer didn’t mince words in her letter. “One thing is for certain: the small property owner pays a lot of taxes,” she wrote. “We are the modern version of the indentured servants who pay for others.”

She also noted that the 2026 Friendly Budget wasn’t available at the budget hearing, despite being required by state law. When she reached out to the Department of Community Affairs, they said they’d tell Jersey City officials to provide it. That kind of transparency gap, she argues, makes it hard for residents to trust how their tax dollars are being used.

City officials have not yet responded publicly to Balcer’s letter. But in the past, supporters of tax abatements have pointed to the city’s growing tax base and the creation of thousands of new apartments as evidence the policy works. They also note that PILOTs often fund affordable housing and neighborhood improvements, benefits that might not exist without the abatements.

What comes next

For residents who want to follow this story, the next step is the city budget process. Keep an eye on when the 2026 Friendly Budget is released — look for the numbers on exemptions and abatements, and ask questions at public hearings. The city council typically votes on the budget in the spring, so now is the time to weigh in.

Balcer’s letter is a reminder that behind every budget decision is a person — someone who answers the phone when a tenant’s heat goes out, writes a check when the roof needs fixing, and wonders if the system is working for them at all. Whether you agree with her math or not, her question deserves an answer: who really pays for the city’s growth, and is that fair?