The below is an open letter, written by Attorney Michael Millman.

[AOA:  The following will not happen when we defeat Proposition 10!]

Dear Members and Friends:

Over the last 40 years, studies conducted by the Rand Corporation, and most recently, Stanford University, have confirmed and verified that RENT CONTROL IS NOT THE SOLUTION FOR PROMOTING AND ENCOURAGING AFFORDABLE HOUSING and it has had the opposite affect – destroying housing and allowing neighborhoods a “municipal” embarrassment.

Construction trade unions and the construction building trade associations are all opposed to any form of rent control.  Even the National Association for the Advancement of Colored People strongly opposes Proposition 10, recognizing that underserved neighborhoods will continue to not attract development and will not become beautified and enhanced.

In the event Proposition 10 is successful, we can envision a political landscape where condominiums, single family homes, granny flats and all rent units built after 1995 will be required to register.  An enormous, overbearing Housing Department will be installed in your city.  Their initial budget will be $8,000,000 to $10,000,000 per year, wherein their Executive Director, manager and staff attorneys will all earn $200,000 or more per year.

Major corporations will be envious of the comprehensive compensation packages.  Within months, an inspection program will be developed.  Special quasi-judicial commissions will be installed.  Owners will receive citations for alleged “building code” violations.  Properties will be taken under the pretense that they are not habitable and are unsafe.  Tenants will be instructed to pay their rent to the new Housing Department, and of course, their rent will be discounted by a factor of 50% or more.

  • Owners will pay registration fees of $300 per door and an additional $200 per door will be allocated for the tenant eviction bureau and an additional surcharge of several hundred dollars per door for the homeless fund.
  • Owners bill be obligated to pay not only property taxes, but all parcel taxes as well as special bonds.
  • Earthquake retrofit will be the responsibility of owners.
  • Mandated health and safety protocols will be the financial responsibility of only owners.
  • Hardship tenants for financially burdened tenants will be able to apply to the Rent Board who may automatically reduce rents to an “artificial” amount wherein the rent does not exceed one third of the tenant’s adjustment income.
  • When a rental unit becomes vacant, the Rent Board will artificially set the price.  There will be no appeal.
  • At the outset, rents may be rolled back and frozen at some artificial amount.

Waiver – New Construction Protocol

Newly constructed units will fall under the jurisdiction of the Rent Control Bureau.  Rents for new, beautiful, luxury units will be set and determined by the Rent Control Board.  Owners and developers will be told that it will take 60 to 70 years before they can recover their investments.

Call to Arms

Friends, we’re in a fight.  The Apartment Owners Association of California, (AOA) has a Political Action Committee (PAC) – our war chest.

You may make your donation to the PAC and send it to 6445 Sepulveda Blvd., Suite 300, Van Nuys, CA, 91411.  They will use your money immediately.

AOA has joined together with other associations and organizations to pool the money to be used to fight to defeat the Progressive’s Prop 10.  Professionals have already been hired to run our campaign.

They have printed lawn signs for you and your neighbors, tenants, friends and others.  You can pick up your sign at one of the AOA offices.  Be sure to call to make sure of the time and availability of the supply.

THE TIME IS NOW – VOTE NO ON PROPOSTION 10 AND DONATE NOW!

[AOA:  Yes, this might not happen to you, but it sure will happen to many other owners, and the value of your building(s) will go right down with them if we do not win this battle against Proposition 10!  It will take a lot of money to win and I encourage you to contribute your share.  Over fifteen million dollars have already been raised by a coalition and it is going to take a lot more to win.  We are counting on you and other AOA members and friends to help win this one.  The opposition has been given millions of dollars from a big donor with socialistic ideas.  To counter this, professionals have been hired to run the campaign for our industry and they have to be paid along with the cost of the promotion.  Be sure to visit an AOA office and pick up your “Vote No on Prop. 10” lawn sign.  Please, please donate at least $100!  If you are able to do more, please do it now.  How about somewhere between $100 and $10,000?  – Dan Faller]

 

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