Prop 90 = the End of Rent Control, Minimum Wage, Environmental Regulations

For tenants, the most dangerous measure on November’s ballot is Proposition 90—a measure which will severely restrict San Francisco’s rent control law, condo conversion law, housing & habitability codes and affordable housing laws like inclusionary zoning requirements. At worst, Proposition 90 would render rent control unenforceable, effectively repealing it. At best, Proposition 90 would prohibit any further rent control changes benefiting tenants. Proposition 90 is one of about six nearly-identical measures placed on state ballots around the country by a coalition of right-wing groups seeking to use current fear over eminent domain to severely limit government’s ability to regulate businesses and land use.

Prop 90’s bait is to prohibit the use of eminent domain unless the use of the property would be by a government entity. California already has a similar prohibition on the use of eminent domain—the bait is being used to hide the meat of Prop 90, which is to end government regulation of businesses. Prop 90 says that governments must reimburse any property owner whose actual or potential property value is reduced (by even a dollar) as a result of government regulations.

In other words, if a landlord could raise rents by $1,000 per unit but a local rent control law limited those rent increases to $250, the government would then owe the landlord $750 per unit. Multiply this $750 times the 200,000 or so rental units in San Francisco and it would mean a bill for the city of $150 million. In addition, the landlord could sue, saying their 10-unit apartment building would be worth $10 million if the rents were not regulated but is worth just $7 million because of rent control. Based on 1,000 10-unit buildings in the city, the city’s bill from these landlords would be $3 billion. The same would be true with condo conversions: a 4 unit building is worth $1.5 million as rental property, $3.5 million as condominiums thus the city would be on the hook for the $2 million difference for every 2-6 unit building in the city—a cost to the city of hundreds of millions of dollars.

Obviously—as Prop 90 intends—the city could not afford to pay landlords these huge amounts and would simply not adopt any further laws limiting rents, evictions, conversions etc. What can make this situation even worse, though, is that if the measure passes then landlords will start filing lawsuits claiming compensation under existing rent control or condo conversion laws. If the courts rule that Prop 90 affects the future application of current laws, then San Francisco’s rent control and condo conversion laws will be effectively repealed. Minimum wage laws, environmental regulations, and many other beneficial government regulations will see the same fate.

Tenants obviously need to vote NO on Prop 90 and make sure the word gets spread that 90 – rent control repeal. For more information on Prop 90 and how you can get involved, here are some resources: No on Prop 90 web site: http://www.NoProp90.com; California Budget Project report on Prop 90: http://www.cbp.org/2006/0609_bb_prop90.pdf


The SF Tenants Union is also taking literature about Prop 90 door to door, and we need your help! Come to the SFTU to pick up No on 90 literature, and on Yes on H literature. (Prop H will raise relocation benefits for no-fault eviction tenants.)

SF Tenants Union
558 Capp St/21st St
call 282-5525 or email volunteer [at] sftu.org for more information