Here they go again. There are organizers out there collecting signatures for a California initiative that calls for even stricter residential rent control laws. This initiative is called the “Justice for Renters Act” and 546,651 signatures must be gathered in six months and then verified to go to the statewide ballot in 2024.
According to state records, the top financial backer for this measure is the Los-Angeles based AIDS Healthcare Foundation (AHF) – a non-profit and housing advocate. Under the leadership and founder Michael Weinstein, two previous measures were authored by AHF seeking to expand rent control in California – (In 2018, Prop. 10 and in 2020, Prop. 21).
Proposition 10 would have also repealed the Costa-Hawkins Act and Proposition 21 would have allowed cities to pass rent control measures on almost all rental housing as long as it was more than 15 years old – exempting those who owned no more than two small properties such as single-family homes or condos.
According to an analysis by the Legislative Analyst’s office, if Prop. 21 would have passed, cities and states could have lost revenue in the “high tens of millions per year” because rental property owners would have paid lower property taxes.
Both of these measures failed at the polls. Justice for rental property owners! Let’s hope this one follows suit.
Exactly What Would the “Justice for Renters Act” Do?
If passed, this measure would end the California’s Costa-Hawkin’s Act, which, currently, does not allow rent control for housing built after February of 1995 for condos or single-family homes.
If passed, cities and counties would be allowed to enact new or expand upon current rent control ordinances and the measure would allow rent control on ALL residential rental properties.
How Would It Affect:
|Tenants||Rental Property Owners||Cities, Counties, State|
|Lower rents – short term||More restrictions = more hardship||Lessens tax revenue|
|Decreases affordability – long term||Additional registration fees/expenses||Discourages new construction|
|Increases competition for units||Theft of rental income||Wards off California investors|
|Decreases upkeep, repairs||Decline in investments|
|Declines in property value||Reductions in current quality of stock|
|Promotes sales & out of state investing||Causes more housing shortage|
|Steals property rights|
Studies have verified that rent control, as it may benefit some renters in the short term, only hurts everyone in the long term. It’s simple Economics 101 – a course that all politicians should be required to pass before they are elected to office. It wouldn’t hurt Mr. Weinstein to take a few notes either.
Assar Lindbeck, a Swedish economist who chaired the Nobel prize committee for many years, once reportedly declared that rent control is “the best way to destroy a city, other than bombing.”
What Can You Do?
As they are out there collecting signatures to get this initiative on the ballot for next year, let’s build up our war chest to fight them if they succeed. Please donate to AOA’s Political Action Committee online at https://aoausa.com/pac/ or send your check to AOA PAC at 6445 Sepulveda Blvd., Suite 300, Van Nuys, CA, 91411 TODAY!
P.S. Folks, this is going to be a big one, and it’s going to take millions of dollars from our total industry to defeat it. The tenants are better organized now more than ever! Please donate $100 for each unit that you own or at least $1,000. Thank you! Dan Faller