Bhalla faced a crowded field of challengers in the race. But he had received the endorsement of outgoing Hoboken Mayor Dawn Zimmer, who is stepping down after serving two terms.
"Thank you for having faith in me, for having faith in our community, faith in our state, and faith in our country; this is what America is all about," he told supporters in his victory speech, according to the Journal.
"We've been through a bruising campaign ... but now is the time we come together and see who we can work with to bring this city forward."
Controversy erupted this week after doctored campaign fliers surfaced, bearing a picture of Bhalla and reading "Don't let TERRORISM take over our town!"
According to The Jersey Journal, those fliers appeared to be altered versions of a mailer from the campaign of Michael DeFusco, a city councilman running against Bhalla in the mayoral race. He has insisted that he had nothing to do with the handouts.