The new measure again allows the expansion of rent control to owners of more than one single family home, corporate owners, and owners of apartment buildings over 15 years old. Further, rent increases on vacant units will be severely limited. This measure will cause a radical decrease in property values , discourage new construction and property renovation, create a shortage of available apartments, and raise the rents on non-controlled units.

This time though, the proposition will be more difficult to defeat. First, the new proposition has exempted most single family homes. Second, the voter turnout will be greater and more liberal. Third, rents have continued to increase.

On the positive side, CAA (California Apartment Associated) supported AB1482 which instituted a more moderate rent control statewide. We believe AB1482 will mute support among some for this new version of the 2018 Prop 10 radical rent control ballot measure. Also AB1482 should end the horrible headlines of tenant rents doubling or tripling overnight.

However, it is critical that all owners contribute to the campaign to defeat this new proposition. Don’t assume you can free ride off of large landlords. Blackstone has sold out their interest in single family homes.

The pro-radical rent control advocates will try to market radical rent control as a solution to the homeless crisis, which has arisen to the number one issue amongst Californians. Here are summaries of the upcoming 15 second pro-radical rent control commercials:

• ‘The Squeeze’ – a single take, slow motion close-up of a hand tightly squeezing an orange dry as a narrator V.O. says: “Corporate landlords are squeezing California renters dry. Seniors, veterans and working-class families are being priced out of their homes and neighborhoods and forced to sleep in cars and on our streets. Join the movement and stop the squeeze…”

• ‘Apocalypse’ – Several stark black & white tracking and drone shots of tents and the homeless on Skid Row in Downtown Los Angeles with a voice over narration: “The apocalypse is now. How did homelessness get so bad? How much worse can it get? Rising rents are driving thousands onto the streets. California needs to expand rent control. Tell your elected officials, we need rent control now…”
Owners need to get their side of the story out to the public. Contribute to the organization set up by the California Apartment Association to fund the opposition. Please send or wire your contributions to Californians For Responsible Housing, who is recommending a contribution of $10 per unit:

Please make all checks payable to: Californians for Responsible Housing – 2020

Mail checks to: Nielsen, Merksamer, Parrinello, Gross & Leoni, LLP, c/o Elli Abdoli
2350 Kerner Blvd., Suite 250, San Rafael, CA 94901

Los Angeles Councilmember Seeks to Eliminate 3% Floor for Los Angeles Rent Control Apartments and replace it with 60% of CPI

Los Angeles Councilmember Seeks to Eliminate 3% Floor in RSO
Call City Council Today and Tell Them You Oppose!
City of Los Angeles Councilmember Mike Bonin is proposing to eliminate the 3% floor that has been the backbone of the City’s’ Rent Stabilization Ordinance since 1978. His proposal calls for the elimination of the 3% floor to be replaced with a new calculation – 60% of CPI. This is part of a broader package of proposals related to housing.

The current allowable increase calculation was the result of compromise at the inception of the rent control program. The 3% floor has long existed as a safety mechanism for housing providers. It ensures they do not fall victim to costs that rise independent of the Consumer Price Index (CPI).

The CPI is a consumer index. It does not take into account rising operational expenses such as real estate taxes, insurance, the city’s gross receipt tax, utilities, water, sewer, waste franchise increases, pest control, repairs and maintenance, earthquake retro-fitting, painting, cleaning, landscaping, vacancies, management administration, advertising, legal costs and a whole host of other expenses incurred through operating rental housing. These costs are increasing significantly in the City of Los Angeles.

All housing providers must reach out to the council members. Tell them you oppose any changes to the allowable increase formula in RSO buildings. Let them know how it will negatively affect your ability to provide housing in the City.
Contact the City Council Today!