RED ALERT

California Legislators Prepare to

Force Rent Control Policies on the

Entire State of California!

On April 25, California Legislators are set to vote some of the most extreme forms of rent controls in the United States! Two destructive housing bills are up for the vote: AB 36 (Bloom) and AB 1482 (Chiu). These bills include:

· Severe rent caps on your properties.

· Applies to ALL rental properties, regardless of type or size.

· Eliminates local government from addressing local housing problems

If passed, no one, including YOU or YOUR local public officials, will have the ability to address rental housing policies in your city or county.

CALL TO ACTION:

1. Call your Assembly Housing and Community Development Committee members (listed below) on or before Wednesday, April 24.

2. When they answer the call:

a. Identify yourself as a member of the Apartment Association, California Southern Cities.

b. State that you live, work, own or manage residential rental property in the City or County of _____________.

c. Ask the Legislator to VOTE NO on AB 36 (Bloom) and AB 1482 (Chiu) because these policies will:

Ø Damage the existing rental housing stock in California,

Ø Impose rent controls on single-family residences, and

Ø Prevent local governments from addressing local housing issues.

d. Thank the Legislator’s staff for taking your call. That’s it!!

If you don’t call, the power brokers in Sacramento will assume that you support, or could at the very least, agree to these industry-damaging ideas.

Please call the following Assembly Democrats that are members of the Assembly Housing and Community Development Committee as soon as possible and ask them to VOTE NO on AB 36 (Bloom) and AB 1482 (Chiu).

ASSEMBLY MEMBERS TO CALL:

Assemblymember David Chiu: (916) 319-2017

Committee Chair and Author of AB 1482

Representing: San Francisco

Assemblymember Sharon Quirk-Silva: (916) 319-2065

Representing: Anaheim, Buena Park,

Cypress, Fullerton, La Palma, and Stanton

Assemblymember Jesse Gabriel: (916) 319-2045

Representing: Los Angeles, Ventura

Assemblymember Todd Gloria: (916) 319-2078

Representing: San Diego

Assemblymember Monique Limón: (916) 319-2037

Representing: San Luis Obispo, Santa

Barbara, Ventura

The

Assemblymember Brian Maienschein: (916) 319-2077

Representing: San Diego

Legislative Update

Quick Summary of bills:

AB 36 (Bloom) – Statewide Rent Control

The Bloom bill would aim to repeal parts of the 1995 Costa Hawkins Act which prohibits cities from imposing rent control on single-family homes, condominiums and apartment buildings built after 1995. It would allow rent control on buildings 10 years or older, as well as single-family homes, excluding landlords who may own up to two residential units.

Opponents have argued that rather than address the state’s housing supply crisis, this bill adds to the stock of rent controlled properties. Alongside sending a discouraging signal to investors from California legislators, it may actually make the problem worse.

AB 1482 (Chiu) – Statewide Just Cause for Eviction Policy

This bill establishes a new statewide rent-control policy. Currently the bill has not committed to a percentage for allowable annual rent increases, suggesting a change in this rate for the foreseeable future. For the moment, the consumer price index (CPI) would be used to determine the allowable percentage rent increase allowed. Further, this bill would only apply to units not already covered by local rent control ordinances. The bill’s author, Assemblymember David Chiu, has suggested allowing rent increases of three or four percent annually in the final draft of the bill.

Opponents cite the literature and research demonstrating the deleterious effects of rent control on the local housing markets. Anything from stiflingly investments, discouraging building upgrades and, again, not truly addressing the affordable housing issues for many of California’s residents.

Thank you again for your continued support.

Terri Shea

Operations Manager

Apartment Association, California Southern Cities

333 W. Broadway, Ste. 101

Long Beach, CA 90802-4438

We are in the trench’s here in CA.

I am in Long Beach. Lately it has been a constant assault seems like every other month.

Glad to see someone advocating action.

California is a beautiful place. I lived in Fremont as a child back in the late 1970s, and we have family out there we visit from time to time. But for all it's natural beauty and amazing pool of talented residents the major population centers seek to make an age-old mistake of imposing capital controls in the form of higher than market force minimum wages and rent control. Rather, they should be considering policies to remove barriers to building more affordable housing and encouraging new use of existing units that would help meet demand.

There are different rules and how they are applied to landlords. Private landlords are at the mercy of the various governmental departments and agency's.

Properties owned by the City, County, State or Federal Government are exempt from most or all of the "rental" regulations. They do as they please with no impunity.

I'm guessing Bloom is presenting a watered-down version of proposition 10 that was voted down last November. I would think that the extremely powerful and rich landlords and developers would have some say in Bloom's Bill. All over Silicon Valley, way too many one-story businesses are torn down to make way for huge apartment complexes, each unit bringing in around $2.6k a month in rent while houses go for over $3.5k.

Chiu's Bill sounds a bit more reasonable and could gain traction.

S i d, I didn't know that you lived in Fremont? It's still very beautiful, even with the voracious development everywhere. Tesla took over NUMI by the way.

Most of these proposals limit how much you can raise rent in a single year or in any single instance. Some limit how much you can raise rent when you have a vacancy.

I think the best plan for a property owner in dealing with the likelihood for any of these potential proposals passing is to make sure their rent rates are in line with current rent rates. Any property owner who hasn't kept their rents current will get burned.

Josh [CA]) posted his message on Apr 24, 2019 at 12:22 PM

AB 36 (Bloom) was withdrawn from consideration on the same day at 11:00 pm because of lack of votes.

I have reported before about how Rent Control, in CA and elsewhere, is an inevitable result of landlords taking excessive advantage of unbalanced housing supply and demand.

Whats the difference between landlords taking moderate advantage by raising rents, say, $100 every year steadily and avoiding rent control, and landlords raising to whatever they can get and as soon as they can get it, and bringing rent control as a result?

The difference is that rent control, like other government programs, stays long after its initial purpose ends, plus rent control is usually accompanied by other restrictive legislation governing landlords, like just cause eviction.

While landlords have avoided the bullet on AB 36, if something isn't done to relieve rents by increasing housing supply, the bullets will be getting more and more difficult to avoid.

The results of rent control is the lower end of the rental market disappears as many of the smaller rental housing providers sell houses, small apartment building to large corporations which kick out, renovate then raise rents to higher levels.

So the very people who require a reasonably priced rental unit are left out. Some tenants who live in rent controlled units buy houses and condominiums units then rent them out at high rents where those rental units are not available to people who need them.

The basis for rent control is not control rents but bankrupt the private sector rental housing providers then once the government takes over rent control ends. Jurisdictions that have rent control rents are always higher then a free market area as there is no vacancy rate. No competition.

CA LLs are not taking advantage of the rental market IMO, contra "I have reported before about how Rent Control, in CA and elsewhere, is an inevitable result of landlords taking excessive advantage of unbalanced housing supply and demand."

The problem in CA is the democratic politicians are importing caravans of illegal aliens to vote for them who are then causing a shortage of cheap housing. The democratic politicians then blame LLs for the shortage of housing and market rent increases caused by the swarms of illegal immigrants welcomed by the democratic politicians. In a free market economy, everyone in the world cannot move to California without causing a housing shortage - LLs did not cause this problem.