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Support AB 1506 to repeal the Costa-Hawkins Rental Housing Act.

by Lynda Carson (tenantsrule [at] yahoo.com)
California Assembly Members Bloom, Chiu, and Bonta introduced AB 1506 on February 17, 2017, and need your support for the proposed bill to repeal the Costa-Hawkins Rental Housing Act.. The bill would once again allow the regulation of residential rental housing pricing by local governments in California.
Support AB 1506 to repeal the Costa-Hawkins Rental Housing Act.

By Lynda Carson - February 24, 2017

Oakland - Repealing the Costa-Hawkins Rental Housing Act., by supporting Assembly Bill 1506, would go a long way to strengthen rent control, limit rent increases, and would once again allow cities to regulate the rental rates on rental housing units that have been voluntarily vacated. Passage of AB 1506 would help in the effort to stabilize communities, and challenge price gouging by unscrupulous landlords throughout California.

California Assembly Members Bloom, Chiu, and Bonta introduced AB 1506 on February 17, 2017, and need your support for the proposed bill to repeal the Costa-Hawkins Rental Housing Act.. The bill would once again allow the regulation of residential rental housing pricing by local governments in California.

According to the City Attorney of Fremont: “As early as 1976, the California Supreme Court upheld the authority of cities to adopt rent control under their police power granted in the State Constitution.”

“That authority was limited by the State Legislature in 1995 by the Costa-Hawkins Rental Housing Act (“Costa-Hawkins”). Under Costa-Hawkins, rent control cannot be applied to units built after February 1, 1995. Costa-Hawkins also exempts single family homes, condominiums, and rental properties with less than two units.”

“As to rental units constructed prior to 1995, Costa-Hawkins prohibits “vacancy control”. In other words, where a rent control ordinance is in place, rent-controlled units by law become temporarily uncontrolled when a tenant moves out, and property owners can reset/increase rents at that time without any limitations.”

“Once a new tenant occupies the vacant unit, however, the unit again becomes subject to an existing rent control ordinance.”

Assembly Member Rob Bonta of Oakland is trying to repeal the Costa-Hawkins Rental Housing Act.

In an email sent out by Tonya Love, from the Office of Assembly Member Rob Bonta in Oakland, to tenants' rights groups supportive of AB 1506: “I am writing to bring your attention to AB 1506 – Repeal Costa-Hawkins that Assemblymember Bonta is co-authoring with Assembly Member Bloom and Assembly Member Chiu. Our office is working to gather support for this bill and naturally we wanted to reach out to see if this is an issue your organization can consider supporting.”

“The bill is pretty straightforward as it repeals the Costa-Hawkins law. A strategic communications and advocacy plan is in the works. However, we are asking all of our local advocates and their partners to help by sending in letters of support, making phone calls, writing op-eds, setting up meetings with key Assemblymembers and mobilize constituents in support of AB 1506. This will be a heavy lift and we need all hands on deck!”

“Currently the bill has gone through its first reading (introduced 2/17/17) and we expect it to be assigned to the Housing and Community Development Committee within the next couple of weeks. We will keep you informed of when it reaches the committee. There are seven members, and we need a majority to pass. I have highlighted in bold the members whose votes are critical in order to get the bill passed out of committee. If you have allies in these districts please communicate with them and ask them to support AB 1506.”

Assembly Housing and Community Development Committee Members:

• David Chiu (chair) – D, San Francisco

• Marc Steinorth (vice chair) – R, Rancho Cucamonga

• Raul Bocanegra – R, San Fernando

• ED CHAU – D, MONTERY PARK

• Steven Choi – R, Tustin

• ASH KALRA – D, SAN JOSE

• MONIQUE LIMON – D, SANTA BARBARA

If you need contact information please let me know. Please let me know if you have any questions, I will be more than happy to talk with you about it and connect you with our Legislative Director if necessary. Thanks and I look forward to hearing from you.
 
Tonya D. Love
Office of Assemblymember Rob Bonta
1515 Clay Street, Ste. 2204
Oakland, CA 94612

California Apartment Association (CAA) is against the repeal of Costa-Hawkins

It is no surprise that the California Apartment Association (CAA) is against the repeal of Costa-Hawkins, and is aggressively taking action to stop the repeal of Costa-Hawkins. The CAA has many politicians in it’s pocket as a direct result of the corrupting influence it’s BIG MONEY has on politicians, and lawmakers in California.

Greg McConnell of The McConnell Group in Oakland, who resides in Danville, likes to boast that he is the one who led the charge to pass the notorious the Costa-Hawkins Rental Housing Act. A law that stripped cities of it’s right to regulate rental housing rents as a way to protect renters from unscrupulous landlords.

Lynda Carson may be reached at tenantsrule [at] yahoo.com

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Comments (Hide Comments)
It sounds like benefit tenants first. But in long run, it will hurt tenant badly. Who will build new rental houses? Who will put house as rentals. It's exactly like a communist country. After destroying landlord, everyone is poorer
by Lisa
When rent control was in place in Berkeley prior to Costa Hawkins, owners ended up moving back into their properties because they couldn't afford to rent them under such restrictive controls. You know who it hurt in the end? Tenants. They were displaced at rapid rates and had to leave the city. Do the research and look at the statistics. Low income, seniors on fixed incomes and blacks had the highest rate of displacement when their landlord moved back in and they were kicked out. So tell me again how Costa Hawkins has ruined it and helped to increase displacement?
Rent control is good in Europe & USA in spite of the what liars say...

In addition to the USA, rent control exists and helps to protect renters in France, Germany, Sweden, the Netherlands and Switzerland.

Theses are no communist countries.

Rent control helps to stabilize communities, and protects renters from greedy landlords involved in price gouging.

(LC)

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Berlin's New Rent Control Laws Are Already Working

The “rental price brake,” introduced on June 1st, is the city’s most comprehensive tool to date for keeping rent affordable.

• Feargus O'Sullivan

• @FeargusOSull

• Jul 9, 2015

http://www.citylab.com/housing/2015/07/berlins-brand-new-rent-control-laws-are-already-working/398087/

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Rent control: a success across Northern Europe
Monday, 16 January, 2017 - 15:06

http://en.myeurop.info/2012/06/06/rent-control-a-success-across-northern-europe-5530

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Paris makes rent cap regulations a reality

Latest update : 2015-08-01

“Housing in France is 50 percent more expensive than in Germany, it is a burden on families and limits their purchasing power" Grenoble Mayor Eric Piolle told France Inter radio this week.

Other European countries, including in Germany, Sweden, the Netherlands and Switzerland already implement similar rent control laws.

http://www.france24.com/en/20150801-rent-control-law-paris-france-effect-regulations

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Almost nobody in the UK is opposed to rent controls for housing

Most people want legal controls on rent, with support particularly strong in London

By Jon Stone


http://www.independent.co.uk/news/uk/politics/almost-nobody-in-the-uk-is-opposed-to-rent-controls-for-housing-9955679.html

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By Gregory Cornfield / February 22, 2017
Beverly Hills extends emergency rent controls

http://beverlypress.com/2017/02/beverly-hills-extends-emergency-rent-controls/

Beverly Hills new rent control laws…

http://beverlyhills.granicus.com/MetaViewer.php?view_id=2&event_id=3005&meta_id=322821

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Hit send too fast. Correcting typo.
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AB1506 target to repeal costa and Hawkins and take away the "vacancy decontrol" from property owner,
this action amount to "taking" of the property right! Last I checked, US is not a communist
country yet.

Labor, utility bills, property taxes are not constrained by CPI. This bill put property
rent permanently at starting rent+CPI. Over time, the rent collected will not be enough
to service the mortgage + cost, there is no incentive for owner to maintain these rental,
thus will actually reduce the rental supply pool and achieve the opposite result.

AB1506 will also attempt to put SFH and condo under rent control. This is a huge burden
for small mom and pop owners. Often people have life changes and need to put their home
as rental to help out a temporary situation. If these are put on rent control, owners are
going to be faced with huge relocation fee if and when they want to take back the rental
and occupy themselves again. This is very unfair to the mom and pop owner who could lease
afford these cost at a worst time in their life. This bill hurt home owner and home ownership!

We are living in the great county of united states of America, there is still the American dream of home ownership. We want people to be upward mobile, we want renters to be home owners one day. please don't help to diminish the American dream! communism does not work! If you want to experience it, please move to the great paradise of north Korea or Cube where you will be assigned a government apartment, worry free!
The "landlords" I know are not some rich, unscrupulous people. Here are some examples:
*One is our hardworking handyman. Bought a foreclosure property during the mortgage crisis. He worked hard, repaired the units and now he is a landlord, with a dream of paying for his kids college education.
*A friend's parents were gardeners/landscapers. Worked hard their whole life, saved money and purchased a fourplex. Now they are retired and living a simple life from their rental income.
*A client of mine is renting out their first home, just breaking even on their expenses. They are afraid that if they sell this place, their adult children will never be able to buy a home here.
* Another friend, purchased a home in a very high end neighborhood. For over 5 years she was in a loss. The rental income did not cover her mortgage.
* I myself invested all my savings in a duplex to pay for my children's college from the rental income. Yes, I had Section 8 tenants completely destroy the property.

When we think of rent control, we have to understand both sides. I do understand the shortage of homes, the high rents and the phenomenal stress on tenants and their families. But should a homeowner/investor/landlord be expected to pay for this? Are they somehow now, non-profits expected to pay for the problems facing tenants? Many investors who purchased the property in the past 5 years, barely make enough to cover their mortgage and taxes.

Yes, there are rich investors and unscrupulous landlords too but a law to control rent, affects all homeowners and investors, even the hardworking ones like my retired friends and the handyman.

In capitalism, the market sets the price. If rents are too high, there will be a point when there won't be any tenants for the place, and rents will come down. What we need is more housing for everyone.

by Jake
Please don't repeal this law that protects so many single-family homeowners Who want to rent out their house for a while. Or at the very least protect those of us who only have one property and are barely making it.
by Lee
Regulation of residential rental housing pricing by local governments is a mistake. When demand increase, price increase. The best way to control the rental price is to build more houses.
by californian
no on AB 1506.

the more restrict rent control. the higher rental price
by Justin Fisher
This bill creates no incentives for landlords to renovate or maintain their buildings. This will just create slumlords. We need to be pro-development. This is backwards for so many reasons.
by Alvin M.
Costa-Hawkins strikes a balance between the need of the tenants and small investor landlords. Repealing Costa-Hawkins will hurt many honest investors who provide valuable service to the society. Repealing Costaq-Hawkins is demagoguery. Say NO to AB 1506.
by Andy
It was not a well thought out proposal. It will not only hurt the property owners, it will also hurt the tenants eventually. NO real winner to either party.
by Anne
No on AB1506. It doesn't create any more affordable housing. Instead it will CAUSE further shortage of affordable housing. San Francisco has one of the most strict rent controls in US for 40 years and it has the highest rent. Rent control is counter productive!
by Abe Shen
I am a constituent in your district, and I am writing to ask you to stop a bill that will worsen our housing crisis. AB 1506 (Bloom) will encourage stringent rent control throughout California. It will repeal the Costa-Hawkins Rental Housing Act, a law that created a statewide formula for local governments to follow if they elect to implement rent control. If Costa-Hawkins were repealed, cities in California could adopt rent control measures without any limitations.

Costa-Hawkins does allow local governments to pass rent control laws but it includes important provisions. The law exempts new construction built after 1995; it exempts single-family homes from any form of rent control; and it requires all local rent control laws to contain a "vacancy decontrol" provision to allow the rental price to increase after a tenant moves out.

History has shown that rent control clearly does more harm than good. AB 1506, among other things, would:

• Stop new housing development. New housing construction would come to a standstill because developers won't build housing if rents can be regulated.

• Expand rent control to single-family homes.

• Hurt low-income individuals and families. Cities with strict rent control push low income renters out and leave in place high-income tenants. Rental units are hoarded by savvy, higher-income tenants who benefit from rent control, regardless of their income.

• Lower the number of rental units. Cities with stringent forms of rent control, have lost large numbers of rental units. Owners, frustrated with rent control, take their units off the market.

Please encourage Assembly Member Bloom to drop AB 1506.
by Bridget
I support rent control
by R. McAfee
My home is my only asset. Because of the ever increasing cost of living in the bay area I may well have to move and would need to rent out my house, not to live in Paris, but to live in an apartment, in a city, that I don't want to be in, but can afford. I have been on both sides of this matter. I rented for 26 years, I also have paid tens of thousands of dollars in property taxes and upgrades/maintenance on my home. I should not have to pay a penalty/relocation fee if I do rent my home, a lease has ended, and I wish to return. I of course would give proper notice. This is government over-reaching. You want to assist those who are underprivileged, stop stomping on the working-class people who have worked all their lives to have a home. And for the record, I am a single, 68 y.o. woman, who still pays a mortgage!
by serean kimmel (serean [at] sereankimmel.com)
Unbelievable politicians are so selfish to ruin cities to get elected Drop AB 1506
Creates plight. Who says land lords are unscrupulous? landlords take the risk and responsibility; why should the rents be limited? This is against our belief in freedom. Why should landlords lose money because they are not allowed to charge enough rent to cover their expenses. If you do this people wont invest in multi family , the conditions of the properties deteriorate, and the plight of neighborhoods.
NO AB 1506
I am both a landlord and a tenant. I am in favor of rent control but against repealing Costa Hawkins. Repealing Costa Hawkins will 1) dis-incentivize development and re-development of new units, making the housing crisis far worse, 2) financially destroy the small owners of homes and apartments, 3) create a highly uncertain and volatile regulatory environment in CA by removing the last vestiges of statewide regulatory uniformity, 4) add to inflationary pressure in CA by diverting investments from real estate to other assets and goods.

Rent control is being abused by both landlords and tenants across CA. However, both sides have learned to incorporate it into their economic calculations. Altering the landscape in such a drastic way as repealing CH would result in far more pain than gain, even if we only consider tenants' interests.
by Sebra Leaves
We applaud Assembly Member Chiu's efforts to repeal Costa Hawkins and relieve the tension between landlords and tenants that is tearing San Francisco's housing market apart and trapping people in homes because they fear leaving their rent-controlled apartments. The worst part of the housing crunch is the growth of homeless people living on our streets who were kicked out to make way for wealthier tenants. We feel the first step to stopping this trend is to put an end to the speculation that is driving the greed, and repealing Costa Hawkins will go a long way to solving that problem.
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