It is bad for RENTERS, bad for our city, bad for homeowners, bad for condo owners, bad for prospective tenants, bad for new construction, and bad for our apartment supply
The repeal of existing law (Costa Hawkins Act) and rent freeze effort by the Aids Foundation has been defeated twice before.
Polling shows it will be defeated again.
This initiative to freeze rents on vacant units is on the November '24 ballot.
It is bad for RENTERS, bad for our city, bad for homeowners, bad for condo owners,
bad for prospective tenants, bad for new construction, and bad for our apartment supply .
Since vacancy decontrol/recontrol was fully implemented in 1999, 24 years ago, approximately 7200 apartments or 28% of all controlled units in our city have never had a vacancy increase. These and all rentals statewide would be subject to this repeal.
Their legacy rent is based on 1978 rent levels and are 25-35% of market levels.
Market forces of supply/demand govern prices of housing.
Even though unionized labor and municipal employees have high wages and pensions, we live with high inflation, high prices, and high expenses to maintain the aging deteriorating rental properties.
Since rent could not be changed on vacant units, all property owners, single family
homeowners, condo owners, air bb folks, apartment owners, would be
reluctant to rerent low rent vacant units.
The repeal would remove units from the rental supply, or remain vacant,
and make it difficult for prospective tenants to find available apartments,
including room rentals, air bb, condominiums, and any new construction.
New construction rent levels are included in the initiative, thus reducing new apartment buildings in our city.
Homeowners could not change the price if vacant rooms or houses were vacated.
Ellis Act removal activity would increase.
The state has estimated billions in reduced property values statewide. Less tax coming to our city.
Existing tenants would not have their rent changed, however if young couples wanted to move to
larger units, and build a family or upgrade their apartment, it would be more difficult to find a new place.
Just like before 1999 when Costa Hawkins was enacted by the State Legislature, Key money would reappear,
whereby 3rd parties would charge $10,000 or more to acquire the "low rent" apartments.
There is no benefit to low and middle income tenants if low rent affordable units are likely going to high income renters.
If single family or condo owners rent their residence, and want to return,
they could be required to pay the relocation fee up to $50,000 to reoccupy their own homes!
Mandatory Earthquake retrofit and balcony inspections may not be affordable for many seniors and small property owners due to the rent freeze, thus permitting buildings to fall into disrepair and unsafe conditions.
This initiative has dire negative implications for our city and the state. Vote NO on renters' initiative Nov. 24.
Jay Johnson is a prior renter, rent control board commissioner, planning commissioner,
property owner, and member of Progressive Landlords.