CalPERS Money Fuels Ellis Act Evictions in East Palo Alto

by Dean Preston via Beyond Chron

Thu, Jun 18, 2009 7:18AM

Thursday, June 18, 2009 : After gobbling up half the rental housing stock of East Palo Alto and aggressively raising rents, Page Mill Properties has invoked the controversial Ellis Act to evict tenants in the small city of East Palo Alto. Page Mill has targeted buildings with outspoken local activists, prompting accusations that the evictions are retaliatory.

Those familiar with the Ellis Act were not surprised to see it used in this way. "This is how the Ellis Act is used -- it's a horrible law that needs to be repealed," said Ted Gullicksen, director of the San Francisco Tenants Union.

Originally justified as a way for small landlords to get out of the rental business, the Ellis Act has become a favorite tool of real estate speculators to turn a quick profit by buying rent controlled housing, evicting all tenants and reselling the units.

Page Mill's activities in East Palo Alto received significant financing, to the tune of $100 million, from CalPERS, California's public employee pension fund. Tenant and labor advocates have criticized CalPERS' involvement, noting that the pension fund's members are effectively funding a scheme to displace CalPERS' members from their affordable homes. SEIU Local 521 passed a resolution condemning Page Mill's conduct, as did the City Council of East Palo Alto.

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