Costa-Hawkins Rental Housing Act reform: Difference between revisions

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[[File:AB1506-hearing-room.jpg|thumb|right|600px|California Assembly hearing for AB 1506 Costa Hawkins repeal]] In 2017 multiple efforts launched to repeal the '''Costa-Hawkins Rental Housing Act''' ("Costa-Hawkins"), a [https://en.wikipedia.org/wiki/Law_of_California California state law], enacted in 1995, which places limits on municipal [https://en.wikipedia.org/wiki/Rent_control rent control] ordinances. Costa-Hawkins prohibits: 
[[File:AB1506-hearing-room.jpg|thumb|right|500px|California Assembly hearing for AB 1506 Costa Hawkins repeal]] In 2017 two efforts launched to repeal the [https://en.wikipedia.org/wiki/Costa-Hawkins_Rental_Housing_Act Costa-Hawkins Rental Housing Act] ("Costa-Hawkins"), a California state law enacted in 1995 which places limits on municipal [[Rent_regulation|rent control]] ordinances. Costa-Hawkins a) excludes single-family homes including condos; b) excludes buildings built after 1995 or when a city's rent-control law passed; and c) prohibits vacancy control, i.e. it controlling the rent for a new tenant. 


*[http://www.yimby.wiki/wiki/Costa-Hawkins_Rental_Housing_Act_reform#AB_1506_bill_to_repeal_Costa_Hawkins '''AB 1506'''], a California State Assembly bill, and
#rent control on single family dwellings, including condos. 
*'''[http://www.yimby.wiki/wiki/Costa-Hawkins_Rental_Housing_Act_reform#2018_ballot_initiative_to_repeal_Costa-Hawkins California Local Rent Control Initiative], '''a ballot initiative
#"vacancy control", or control of rent charged to a new tenant, sometimes called "strict" rent control; and
#rent control on any building built after 1995, or after a city established its own earlier rent control law. (e.g. in San Francisco, 1979).


In California, rent control laws are enacted by municipalities, and as of 2018 about 15 of the 482 have done so. 
Repeal efforts include AB 1506, a California State Assembly bill, and a ballot initiative '''California Local Rent Control Initiative. ''' 


See [[California housing legislation 2018]] for all housing bills.
 


== Costa Hawkins Act terms ==
== Costa Hawkins Act terms ==


=== Single-family homes exclusion ===
*The Act exempts single family dwellings, and new construction.<sup id="cite_ref-37">[https://en.wikipedia.org/wiki/Costa-Hawkins_Rental_Housing_Act#cite_note-37 [37]]</sup>&nbsp;
*It prohibits local government "vacancy control" in most situations.<sup id="cite_ref-38">[https://en.wikipedia.org/wiki/Costa-Hawkins_Rental_Housing_Act#cite_note-38 [38]]</sup>&nbsp;
*For the five cities with "vacancy control" the Act is phased-in.<sup id="cite_ref-39">[https://en.wikipedia.org/wiki/Costa-Hawkins_Rental_Housing_Act#cite_note-39 [39]]</sup>&nbsp;
*It situates government contracts with owners about rent charged, and the effects of a notice of violation, e.g., about health or safety.<sup id="cite_ref-40">[https://en.wikipedia.org/wiki/Costa-Hawkins_Rental_Housing_Act#cite_note-40 [40]]</sup>&nbsp;
*Costa-Hawkins also addresses subtenancies,<sup id="cite_ref-41">[https://en.wikipedia.org/wiki/Costa-Hawkins_Rental_Housing_Act#cite_note-41 [41]]</sup>&nbsp;and other issues.<sup id="cite_ref-42">[https://en.wikipedia.org/wiki/Costa-Hawkins_Rental_Housing_Act#cite_note-42 [42]]</sup>
*The Act was amended in 2002 to close a loophole related to&nbsp;[https://en.wikipedia.org/wiki/Condominium condominium]&nbsp;conversion.<br/> It prevented owners of apartment buildings, who obtained a certificate for conversion, to avail themselves of the Act's exemption to rent control law, without actually<br/> selling any of such apartments as condominiums.<sup id="cite_ref-43">[https://en.wikipedia.org/wiki/Costa-Hawkins_Rental_Housing_Act#cite_note-43 [43]]</sup>


=== Prohibition of vacancy control ===
&nbsp;


=== Exclusion of new buildings (after 1995 or when city rent-control law passed) ===
== Single-family homes exclusion ==


=== Other ===
== New buildings exclusion&nbsp; ==


*For the five cities with "vacancy control" the Act is phased-in.<sup id="cite_ref-39">[https://en.wikipedia.org/wiki/Costa-Hawkins_Rental_Housing_Act#cite_note-39 [39]]</sup>&nbsp;
== Issues / Concerns ==
*It situates government contracts with owners about rent charged, and the effects of a notice of violation, e.g., about health or safety.<sup id="cite_ref-40">[https://en.wikipedia.org/wiki/Costa-Hawkins_Rental_Housing_Act#cite_note-40 [40]]</sup>&nbsp;

*Costa-Hawkins also addresses subtenancies,<sup id="cite_ref-41">[https://en.wikipedia.org/wiki/Costa-Hawkins_Rental_Housing_Act#cite_note-41 [41]]</sup>&nbsp;and other issues.<sup id="cite_ref-42">[https://en.wikipedia.org/wiki/Costa-Hawkins_Rental_Housing_Act#cite_note-42 [42]]</sup>
=== Expanding rent control could disincent creation of new rental housing ===
*2002 amendment related to&nbsp;[https://en.wikipedia.org/wiki/Condominium condominium]&nbsp;conversion.<br/> It prevented owners of apartment buildings, who obtained a certificate for conversion, to avail themselves of the Act's exemption to rent control law, without actually selling any of such apartments as condominiums.<sup id="cite_ref-43">[https://en.wikipedia.org/wiki/Costa-Hawkins_Rental_Housing_Act#cite_note-43 [43]]</sup>

[NAR 2018].

=== <br/> Should these rent-control aspects be determined by the state or local governments? ===


&nbsp;

=== Rent control encourages conversation of apartments to condos (owned units) ===

Kenneth Stahl‏&nbsp;@kookie13&nbsp;1[https://twitter.com/kookie13/status/951549329675771904 2:20 PM - 11 Jan 2018]<br/> what's the point of repealing C-H if landlords can just convert to condos?<br/> Don't we need to amend the Ellis Act to limit condo conversion before repealing C-H?

also [CAR 2018].&nbsp;

&nbsp;

=== Rent control encourages leaving apartments vacant ===

[CAR 2018]

&nbsp;

=== <br/> Costa Hawkins repeal could provide&nbsp;NIMBYs a New Tool to block housing ===

[CAR 2018]

also&nbsp;[https://caanet.org/caa-assembly-select-committee-nimbys-drive-costs-housing/. https://caanet.org/caa-assembly-select-committee-nimbys-drive-costs-housing/.&nbsp;]

&nbsp;

=== Problems with using intiative process ===

Assemblymember Richard Bloom (D-Santa Monica), sponsor of [[AB1506|AB1506]] repeal bill:&nbsp;
<blockquote>''“At the same time, while I understand why some want to put this change on the ballot, it is never ideal to address a complicated issue like this through the initiative process,” Bloom said. &nbsp;“First and foremost, the initiative process is a simple up or down vote that does not allow for any public input, shuts down dialogue amongst stakeholders, and prevents anyone from making changes to address any concerns raised by those impacted by the proposal.'' ''“Secondly, if there are unintended consequences down the road that need to be fixed, it will require a 2/3 vote of each house of the Legislature – a threshold not easily achieved. &nbsp;For these reasons, something this complicated is better left to the legislative process. AB 1506 remains a vehicle for responsible dialogue and, I hope, legislation that will ease the economic burden that is affecting so many Californians.”<br/> &nbsp;- quoted in&nbsp;''</blockquote>
&nbsp;
&nbsp;


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A similar measure was proposed as legislative bill [[AB1506|AB 1506]], filed in 2017, but this failed to pass out of the housing committee in a vote on 11 January 2018.&nbsp;<br/> <br/> [https://ballotpedia.org/California_Local_Rent_Control_Initiative_(2018) Text of Initiative] (from Ballotpedia).&nbsp;<br/> &nbsp;
A similar measure was proposed as legislative bill [[AB1506|AB 1506]], filed in 2017, but this failed to pass out of the housing committee in a vote on 11 January 2018.&nbsp;<br/> <br/> [https://ballotpedia.org/California_Local_Rent_Control_Initiative_(2018) Text of Initiative] (from Ballotpedia).&nbsp;<br/> &nbsp;

&nbsp;


=== Proponents&nbsp; ===
=== Proponents&nbsp; ===
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==== Michael Weinstein&nbsp; ====
==== Michael Weinstein&nbsp; ====


co-signer of filing letter. Director of&nbsp;AIDS&nbsp;Healthcare Foundation, Los Angeles.&nbsp;&nbsp;
co-signer of filing letter. Director of&nbsp;AIDS&nbsp;Healthcare Foundation, Los Angeles.&nbsp; (@AIDSHealthcare)


==== Elena Popp ====
==== Elena Popp ====
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==== Alliance of Californians for Community Empowerment ====
==== Alliance of Californians for Community Empowerment ====


"The Alliance of Californians for Community Empowerment (ACCE) Action is a grassroots, member-led, statewide community organization working with more than 10,000 members across California. ACCE is dedicated to raising the voices of everyday Californians, neighborhood by neighborhood, to fight for the policies and programs we need to improve our communities and create a brighter future."<br/> [[http://www.acceaction.org/about http://www.acceaction.org/about].
"The Alliance of Californians for Community Empowerment (ACCE) Action is a grassroots, member-led, statewide community organization working with more than 10,000 members across California. ACCE is dedicated to raising the voices of everyday Californians, neighborhood by neighborhood, to fight for the policies and programs we need to improve our communities and create a brighter future."<br/> [http://www.acceaction.org/about http://www.acceaction.org/about].&nbsp;&nbsp;@CalOrganize


==== LA Voice ====
==== LA Voice ====


==== Damien Goodmon / Housing Is A&nbsp;Human Right project (AIDS&nbsp;Healthcare Foundation) ====
=== Damien Goodmon / Housing Is A&nbsp;Human Right project (AIDS&nbsp;Healthcare Foundation)<br/> <br/> @HousingHumanRt ===


&nbsp;
&nbsp;
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==== California Association of Realtors ====
==== California Association of Realtors ====


== &nbsp; ==
&nbsp;


=== Related statements opposing full Costa-Hawkin repeal ===
=== Related statements opposing full Costa-Hawkin repeal ===
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&nbsp;
&nbsp;


== Alternative reform proposals ==
== Issues / Concerns ==

=== General arguments for and against rent control ===

see: Wikipedia, "[https://en.wikipedia.org/wiki/Rent_control_in_the_United_States Rent control in the United States]"<br/> <br/> "The rental-accommodation market suffers from&nbsp;[https://en.wikipedia.org/wiki/Asymmetrical_information information asymmetries]&nbsp;and high&nbsp;[https://en.wikipedia.org/wiki/Transaction_costs transaction costs]. Typically, a landlord has more information about a home than a prospective tenant can reasonably detect. Moreover, once the tenant has moved in, the costs of moving again are very high. Unscrupulous landlords could conceal defects and, if the tenant complains, threaten to raise the rent at the end of the&nbsp;[https://en.wikipedia.org/wiki/Lease lease]. With rent control, tenants can request that hidden defects, if they exist, be repaired to comply with&nbsp;[https://en.wikipedia.org/wiki/Building_code building code]&nbsp;requirements, without fearing retaliatory rent increases. Rent control could thus compensate somewhat for inefficiencies of the housing market."

By limiting the extent to which landlords can raise rent on purportedly depreciated property, rent control restores balance to tax benefits otherwise received primarily by homeowners and landlords.<br/> <br/> Rent control may reduce instability and associated&nbsp;[https://en.wikipedia.org/wiki/Externality external costs].&nbsp;<br/> <br/> "Rent stabilization (for a current tenant) may be considered a basic form of&nbsp;[https://en.wikipedia.org/wiki/Consumer_protection consumer protection]: once tenants move into a vacant unit at market rents they can afford and establish lives in these homes, they won't have to renegotiate. Without rent regulation, landlords can demand any amount and tenants must either pay or move. Thus, tenants can become vulnerable to arbitrary and extortionate increases above market value."<br/> <br/> The&nbsp;[https://en.wikipedia.org/wiki/Socialist_International Socialist International]&nbsp;argues that housing is a&nbsp;[https://en.wikipedia.org/wiki/Positive_right positive human right]<sup id="cite_ref-34">[https://en.wikipedia.org/wiki/Rent_control_in_the_United_States#cite_note-34 [34]]</sup>&nbsp;that equals or exceeds the&nbsp;[https://en.wikipedia.org/wiki/Property_rights property rights]&nbsp;of landlords.

&nbsp;

=== Expanding rent control could disincent creation of new rental housing ===

[LAO 2016]:<br/> "The state’s shortage of housing also presents challenges for expanding rent control policies. Proposals to expand rent control often focus on two broad changes: (1) expanding the number of housing units covered—by applying controls to newer properties or enacting controls in locations that currently lack them—and (2) prohibiting landlords from resetting rents to market rates for new tenants. Neither of these changes would increase the supply of housing and, in fact, likely would discourage new construction."

also [NAR 2018].

=== <br/> &nbsp; ===

=== Rent control encourages conversation of rental units&nbsp;to owned units (e.g. apartment to condos) ===

Kenneth Stahl‏&nbsp;@kookie13&nbsp;1[https://twitter.com/kookie13/status/951549329675771904 2:20 PM - 11 Jan 2018]<br/> what's the point of repealing C-H if landlords can just convert to condos?<br/> Don't we need to amend the Ellis Act to limit condo conversion before repealing C-H?

also [CAR 2018].&nbsp;

&nbsp;

=== Rent control encourages leaving apartments vacant ===

[CAR 2018]

&nbsp;

=== Rent control doesn't necessarily serve lower-income households ===

"Requiring landlords to charge new tenants below–market rents would not eliminate this competition. Households would have to compete based on factors other than how much they are willing to pay. Landlords might decide between tenants based on their income, creditworthiness, or socioeconomic status, likely to the benefit of more affluent renters."&nbsp;<br/> - [LAO 2016].&nbsp;

=== <br/> 'Lock-in effect': rent control incents people to stay in a home longer than they otherwise would<br/> &nbsp; ===

"Households residing in affordable housing (built via subsidized construction or inclusionary housing) or rent–controlled housing typically pay rents well below market rates. Because of this, households may be discouraged from moving from their existing unit to market–rate housing even when it may otherwise benefit them—for example, if the market–rate housing would be closer to a new job. This lock–in effect can cause households to stay longer in a particular location than is otherwise optimal for them."<br/> - [LAO 2016].

=== Rent control can disincent maintainance, repairs, and renovation ===

"Declining Quality of Housing. By depressing rents, rent control policies reduce the income received by owners of rental housing. In response, property owners may attempt to cut back their operating costs by forgoing maintenance and repairs. Over time, this can result in a decline in the overall quality of a community’s housing stock."

=== <br/> Costa Hawkins repeal could provide&nbsp;NIMBYs a New Tool to block housing ===

[CAR 2018]

also&nbsp;[https://caanet.org/caa-assembly-select-committee-nimbys-drive-costs-housing/. https://caanet.org/caa-assembly-select-committee-nimbys-drive-costs-housing/.&nbsp;]

&nbsp;

=== Should these rent-control aspects be determined by the state or local governments? ===

&nbsp;

=== Problems with using intiative process ===

Assemblymember Richard Bloom (D-Santa Monica), sponsor of [[AB1506|AB1506]] repeal bill:&nbsp;
<blockquote>''“At the same time, while I understand why some want to put this change on the ballot, it is never ideal to address a complicated issue like this through the initiative process,” Bloom said. &nbsp;“First and foremost, the initiative process is a simple up or down vote that does not allow for any public input, shuts down dialogue amongst stakeholders, and prevents anyone from making changes to address any concerns raised by those impacted by the proposal.'' ''“Secondly, if there are unintended consequences down the road that need to be fixed, it will require a 2/3 vote of each house of the Legislature – a threshold not easily achieved. &nbsp;For these reasons, something this complicated is better left to the legislative process. AB 1506 remains a vehicle for responsible dialogue and, I hope, legislation that will ease the economic burden that is affecting so many Californians.”<br/> &nbsp;- quoted in&nbsp;''</blockquote>
&nbsp;

&nbsp;

== Proposals for revisions and alternative reforms&nbsp; ==


=== Rolling rent control&nbsp; ===
=== Rolling rent control&nbsp; ===


(make rent control apply to buildings only after a certain time - 10, 20, 30 years.)<br/> <br/> “providing a rolling definition of what ‘new construction’ is.”&nbsp; - Rob Bonta, at Jan 11 2018 hearing.&nbsp;
(make rent control apply to buildings only after a certain time - 10, 20, 30 years.)<br/> &nbsp;

East Bay For Everyone:&nbsp;<br/> "we support a rolling phase in period for rent control of, for example, 10 years after the issuance of an occupancy permit, so that rent control does not render new homebuilding economically infeasible."&nbsp;<br/> In support letter for [[AB1506|AB1506]].&nbsp; See [East Bay for Everyone, 2017].

<br/> “providing a rolling definition of what ‘new construction’ is.”&nbsp; - Rob Bonta, at Jan 11 2018 hearing.&nbsp;<br/> &nbsp;


@housingforLA supports.&nbsp;
@housingforLA supports.&nbsp;

<br/> alon_levy‏&nbsp;@alon_levy&nbsp;[https://twitter.com/alon_levy/status/951575113471754240 2:02 PM - 11 Jan 2018]<br/> Replying to @IDoTheThinking<br/> "Alternative: tie SB 827 with a statewide ban on rent control. All of today's RC units become market-rate at an integer # of tenancy years."

&nbsp;

Belmont Renters‏&nbsp;@BelmontRenters&nbsp;[https://twitter.com/BelmontRenters/status/951603247927631872 3:54 PM - 11 Jan 2018]<br/> Replying to @MarcSteinorth<br/> "What about rent control on buildings that are 20 years old? Payback period for new construction is rarely longer than 10 years."

<br/> matthewplan‏&nbsp;@matthewplan&nbsp;[https://twitter.com/matthewplan/status/951743231095537664 1:10 AM - 12 Jan 2018]<br/> Replying to @weel @VamonosLA<br/> "The argument is let different cities make their own policies and not let Costa Hawkins tie hands. Though there likely should be some year limit - 25 years after construction - to ensure new construction isn’t impacted."


&nbsp;
&nbsp;
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Matt Levin @mlevinreports&nbsp;12:53 PM - 11 Jan 2018<br/> "Bloom making point that after committee vote you can still change bill in debate. CAA says it may be open to negotiating on 1995 provision."<br/> &nbsp;
Matt Levin @mlevinreports&nbsp;12:53 PM - 11 Jan 2018<br/> "Bloom making point that after committee vote you can still change bill in debate. CAA says it may be open to negotiating on 1995 provision."<br/> &nbsp;

alon_levy‏&nbsp;@alon_levy&nbsp;[https://twitter.com/alon_levy/status/951575113471754240 2:02 PM - 11 Jan 2018]<br/> Replying to @IDoTheThinking<br/> "Alternative: tie SB 827 with a statewide ban on rent control. All of today's RC units become market-rate at an integer # of tenancy years."


&nbsp;
&nbsp;

=== Exclude single-family homes ===

JFK→NRT→SIN→IAD→NRT→BOS→JFK→OAK→JFK‏&nbsp; @Maxtropolitan&nbsp;[https://twitter.com/Maxtropolitan/status/951582048409579520 2:30 PM - 11 Jan 2018]<br/> Replying to @sporc_ca @TribTowerViews and 3 others<br/> "What makes the total repeal hard, statewide, is that he didn't include an individual homeowner exemption, and that homeowners vote more often than renters do.&nbsp;<br/> If there was an individual homeowner exemption, it'd win easily."

&nbsp;

=== Guillotines for property owners ===

from Jacob Woocher‏&nbsp; @jacobwooch&nbsp;[https://twitter.com/jacobwooch/status/951600045526171648 3:41 PM - 11 Jan 2018]:&nbsp;

[[File:Costa-Hawkins-repeal-by-guillotine-Jacob-Woocher.jpg|thumb|left|500px|Costa-Hawkins-repeal-by-guillotine-Jacob-Woocher.jpg]]

&nbsp;
<div style="clear: both">&nbsp;</div>
&nbsp;

== See Also ==

*[[Rent_regulation|Rent regulation]] (covers rent control and related terms/issues)<br/> &nbsp;


== References ==
== References ==
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*California Legislative Information. "[https://leginfo.legislature.ca.gov/faces/billStatusClient.xhtml?bill_id=201720180AB1506 AB-1506 Residential rent control: Costa-Hawkins Rental Housing Act]." (bill text, history, updates).&nbsp;[https://leginfo.legislature.ca.gov/faces/billStatusClient.xhtml?bill_id=201720180AB1506 https://leginfo.legislature.ca.gov/faces/billStatusClient.xhtml?bill_id=201720180AB1506].<br/> &nbsp;
*California Legislative Information. "[https://leginfo.legislature.ca.gov/faces/billStatusClient.xhtml?bill_id=201720180AB1506 AB-1506 Residential rent control: Costa-Hawkins Rental Housing Act]." (bill text, history, updates).&nbsp;[https://leginfo.legislature.ca.gov/faces/billStatusClient.xhtml?bill_id=201720180AB1506 https://leginfo.legislature.ca.gov/faces/billStatusClient.xhtml?bill_id=201720180AB1506].<br/> &nbsp;
*Chandler, Jenna. “[https://la.curbed.com/2017/10/23/16526384/costa-hawkins-rent-control-ballot-measure-initiative Tenant groups, AIDS Healthcare Foundation introduce initiative to repeal Costa Hawkins].”<br/> ''Curbed Los Angeles'', Oct 23, 2017. [https://la.curbed.com/2017/10/23/16526384/costa-hawkins-rent-control-ballot-measure-initiative https://la.curbed.com/2017/10/23/16526384/costa-hawkins-rent-control-ballot-measure-initiative].<br/> &nbsp;
*Chandler, Jenna. “[https://la.curbed.com/2017/10/23/16526384/costa-hawkins-rent-control-ballot-measure-initiative Tenant groups, AIDS Healthcare Foundation introduce initiative to repeal Costa Hawkins].”<br/> ''Curbed Los Angeles'', Oct 23, 2017. [https://la.curbed.com/2017/10/23/16526384/costa-hawkins-rent-control-ballot-measure-initiative https://la.curbed.com/2017/10/23/16526384/costa-hawkins-rent-control-ballot-measure-initiative].<br/> &nbsp;
*Democratic Socialists of America, Los Angeles chapter. “DSA LA Analysis of the Affordable Housing Act.” Jan 2018 (?). [http://www.dsa-la.org/h_h_analysis_of_the_affordable_housing_act http://www.dsa-la.org/h_h_analysis_of_the_affordable_housing_act].<br/> &nbsp;
*Democratic Socialists of America, Los Angeles chapter.
*Democratic Socialists of America, Los Angeles chapter. “[http://www.dsa-la.org/statement_on_costa_hawkins_repeal Statement on Costa Hawkins Repeal.]” 6 Nov 2017.&nbsp;<br/> [http://www.dsa-la.org/statement_on_costa_hawkins_repeal http://www.dsa-la.org/statement_on_costa_hawkins_repeal].<br/> &nbsp;
**“DSA LA Analysis of the Affordable Housing Act.” Jan 2018 (?). [http://www.dsa-la.org/h_h_analysis_of_the_affordable_housing_act http://www.dsa-la.org/h_h_analysis_of_the_affordable_housing_act].<br/> &nbsp;
**“Statement on Costa Hawkins Repeal.” 6 Nov 2017.&nbsp;[http://www.dsa-la.org/statement_on_costa_hawkins_repeal http://www.dsa-la.org/statement_on_costa_hawkins_repeal].<br/> &nbsp;
**“DSA-LA Statement in Opposition to Measure S.”&nbsp; 2017.&nbsp;[http://www.dsa-la.org/no_on_s [1]].<br/> ''“It is funded by a corrupt local millionaire who is siphoning money from his AIDS charity to prevent obstruction of his office view.”&nbsp;''<br/> &nbsp;


&nbsp;

*Diamond, Rebecca, Tim McQuade, & Franklin Qian (2017). “[http://conference.nber.org/confer//2017/PEf17/Diamond_McQuade_Qian.pdf The Effects of Rent Control Expansion on Tenants, Landlords, and Inequality: Evidence from San Francisco].” NBER working paper, October 11, 2017.&nbsp;[http://conference.nber.org/confer//2017/PEf17/Diamond_McQuade_Qian.pdf http://conference.nber.org/confer//2017/PEf17/Diamond_McQuade_Qian.pdf].<br/> ''"Abstract:&nbsp;<br/> In this paper, we exploit quasi-experimental variation in the assignment of rent control in San Francisco to study its impacts on tenants, landlords, and the rental market as a whole. Leveraging new micro data which tracks an individual’s migration over time, '''we find that rent control increased the probability a renter stayed at their address by close to 20 percent. At the same time, we find that landlords whose properties were exogenously covered by rent control reduced their supply of available rental housing by 15%, by either converting to condos/TICs, selling to owner occupied, or redeveloping buildings. This led to a city-wide rent increase of 7% '''and caused $5 billion of welfare losses to all renters. We develop a dynamic, structural model of neighborhood choice to evaluate the welfare impacts of our reduced form effects. We find that '''rent control offered large benefits to impacted tenants during the 1995-2012 period, averaging between $2300 and $6600 per person each year, with aggregate benefits totaling over $390 million annually.''' The substantial welfare losses due to decreased housing supply could be mitigated if insurance against large rent increases was provided as a form of government social insurance, instead of a regulated mandate on landlords."''<br/> &nbsp;
*Diamond, Rebecca, Tim McQuade, & Franklin Qian (2017). “[http://conference.nber.org/confer//2017/PEf17/Diamond_McQuade_Qian.pdf The Effects of Rent Control Expansion on Tenants, Landlords, and Inequality: Evidence from San Francisco].” NBER working paper, October 11, 2017.&nbsp;[http://conference.nber.org/confer//2017/PEf17/Diamond_McQuade_Qian.pdf http://conference.nber.org/confer//2017/PEf17/Diamond_McQuade_Qian.pdf].<br/> ''"Abstract:&nbsp;<br/> In this paper, we exploit quasi-experimental variation in the assignment of rent control in San Francisco to study its impacts on tenants, landlords, and the rental market as a whole. Leveraging new micro data which tracks an individual’s migration over time, '''we find that rent control increased the probability a renter stayed at their address by close to 20 percent. At the same time, we find that landlords whose properties were exogenously covered by rent control reduced their supply of available rental housing by 15%, by either converting to condos/TICs, selling to owner occupied, or redeveloping buildings. This led to a city-wide rent increase of 7% '''and caused $5 billion of welfare losses to all renters. We develop a dynamic, structural model of neighborhood choice to evaluate the welfare impacts of our reduced form effects. We find that '''rent control offered large benefits to impacted tenants during the 1995-2012 period, averaging between $2300 and $6600 per person each year, with aggregate benefits totaling over $390 million annually.''' The substantial welfare losses due to decreased housing supply could be mitigated if insurance against large rent increases was provided as a form of government social insurance, instead of a regulated mandate on landlords."''<br/> &nbsp;
*Dillon, Liam. “[http://www.latimes.com/politics/la-pol-ca-rent-control-expansion-bill-dies-20180111-story.html Proposal to expand rent control in California fails to advance.]” LA Times, 11 January 2018.&nbsp;<br/> [http://www.latimes.com/politics/la-pol-ca-rent-control-expansion-bill-dies-20180111-story.html http://www.latimes.com/politics/la-pol-ca-rent-control-expansion-bill-dies-20180111-story.html].<br/> &nbsp;
*Dillon, Liam. “[http://www.latimes.com/politics/la-pol-ca-rent-control-expansion-bill-dies-20180111-story.html Proposal to expand rent control in California fails to advance.]” LA Times, 11 January 2018.&nbsp;<br/> [http://www.latimes.com/politics/la-pol-ca-rent-control-expansion-bill-dies-20180111-story.html http://www.latimes.com/politics/la-pol-ca-rent-control-expansion-bill-dies-20180111-story.html].<br/> &nbsp;
*Dillon, Liam. “[http://www.latimes.com/politics/essential/la-pol-ca-essential-politics-updates-rent-control-in-california-could-expand-1508785237-htmlstory.html Rent control in California could expand dramatically under a possible 2018 initiative.]” LA Times, 23 Oct 2017. [http://www.latimes.com/politics/essential/la-pol-ca-essential-politics-updates-rent-control-in-california-could-expand-1508785237-htmlstory.html http://www.latimes.com/politics/essential/la-pol-ca-essential-politics-updates-rent-control-in-california-could-expand-1508785237-htmlstory.html].<br/> &nbsp;
*Dillon, Liam. “[http://www.latimes.com/politics/essential/la-pol-ca-essential-politics-updates-rent-control-in-california-could-expand-1508785237-htmlstory.html Rent control in California could expand dramatically under a possible 2018 initiative.]” LA Times, 23 Oct 2017. [http://www.latimes.com/politics/essential/la-pol-ca-essential-politics-updates-rent-control-in-california-could-expand-1508785237-htmlstory.html http://www.latimes.com/politics/essential/la-pol-ca-essential-politics-updates-rent-control-in-california-could-expand-1508785237-htmlstory.html].<br/> &nbsp;
*Early, D. W. (2000). "Rent Control, Rental Housing Supply, and the Distribution of Tenant Benefits." ''Journal of Urban Economics'', 48(2), 185–204.<br/> &nbsp;
*East Bay For Everyone. "[https://www.scribd.com/document/350029454/Ab-1506-Support#from_embed RE: AB 1506 - Residential Rent Control: Costa-Hawkins Rental Housing Act.]" (letter). 2017.&nbsp;[https://www.scribd.com/document/350029454/Ab-1506-Support#from_embed https://www.scribd.com/document/350029454/Ab-1506-Support#from_embed].<br/> &nbsp;
*East Bay For Everyone. "[https://www.scribd.com/document/350029454/Ab-1506-Support#from_embed RE: AB 1506 - Residential Rent Control: Costa-Hawkins Rental Housing Act.]" (letter). 2017.&nbsp;[https://www.scribd.com/document/350029454/Ab-1506-Support#from_embed https://www.scribd.com/document/350029454/Ab-1506-Support#from_embed].<br/> &nbsp;
*Glaeser, E. L., & Luttmer, E. F. (2003). "The Misallocation of Housing Under Rent Control." ''The American Economic Review'', 93(4).<br/> &nbsp;
*Glaze, Christopher. “[https://www.nytimes.com/2017/04/26/magazine/the-ceo-of-hiv.html The C.E.O. of H.I.V.: Michael Weinstein’s AIDS Healthcare Foundation treats an enormous number of patients — and makes an enormous amount of money. Is that why so many activists distrust him?]" ''The New York Times'', 26 April 2017.<br/> [https://www.nytimes.com/2017/04/26/magazine/the-ceo-of-hiv.html https://www.nytimes.com/2017/04/26/magazine/the-ceo-of-hiv.html].<br/> &nbsp;
*Glaze, Christopher. “[https://www.nytimes.com/2017/04/26/magazine/the-ceo-of-hiv.html The C.E.O. of H.I.V.: Michael Weinstein’s AIDS Healthcare Foundation treats an enormous number of patients — and makes an enormous amount of money. Is that why so many activists distrust him?]" ''The New York Times'', 26 April 2017.<br/> [https://www.nytimes.com/2017/04/26/magazine/the-ceo-of-hiv.html https://www.nytimes.com/2017/04/26/magazine/the-ceo-of-hiv.html].<br/> &nbsp;
*Gyourko, J., & Linneman, P. (1990). "''Rent Controls and Rental Housing Quality: A Note on the Effects of New York City’s Old Controls''." Journal of Urban Economics, 27(3), 398–409.<br/> &nbsp;
*Hart, Angela. “[http://www.sacbee.com/news/politics-government/capitol-alert/article194245939.html California lawmakers kill rent control bill. The battle could be headed to the voters.]” Sacramento Bee, January 11, 2018 [http://www.sacbee.com/news/politics-government/capitol-alert/article194245939.html http://www.sacbee.com/news/politics-government/capitol-alert/article194245939.html].<br/> &nbsp;
*Hart, Angela. “[http://www.sacbee.com/news/politics-government/capitol-alert/article194245939.html California lawmakers kill rent control bill. The battle could be headed to the voters.]” Sacramento Bee, January 11, 2018 [http://www.sacbee.com/news/politics-government/capitol-alert/article194245939.html http://www.sacbee.com/news/politics-government/capitol-alert/article194245939.html].<br/> &nbsp;
*Heskin, Allan D., Ned Levine & Mark Garrett. “The Effects of Vacancy Control: A Spatial Analysis of Four California Cities.” ''Journal of the American Planning Association'', Volume 66, 2000 - Issue 2, Pages 162-176. DOI: 10.1080/01944360008976096.&nbsp;<br/> [https://doi.org/10.1080/01944360008976096 https://doi.org/10.1080/01944360008976096]<br/> ''“Abstract:&nbsp;<br/> This article examines changes between 1980 and 1990 in the number of rental units and the demographic composition of tenants in four California cities that adopted rent control with vacancy control provisions. Six border areas within the four cities were compared to border areas of adjoining cities that did not have vacancy control. A spatial lag regression model was constructed to estimate the changes in regional and neighborhood components in addition to vacancy control policies. Vacancy control contributed to lower rents and longer tenure by tenants compared to non-vacancy-controlled areas. There were also fewer rental units in part because of a shift from rental housing to owner-occupied housing.”''<br/> &nbsp;
*Housing Is a Human Right initiative. (from AIDS Healthcare Foundation).&nbsp;<br/> [http://www.housinghumanright.org/ [2]].&nbsp; [https://twitter.com/HousingHumanRt/ @HousingHumanRt].<br/> "A project to fight gentrification, increase tenant protections, protect at-risk homeowners and advance progressive housing policy. #ResistGentrification."<br/> &nbsp;
*Housing Is a Human Right initiative. (from AIDS Healthcare Foundation).&nbsp;<br/> [http://www.housinghumanright.org/ [2]].&nbsp; [https://twitter.com/HousingHumanRt/ @HousingHumanRt].<br/> "A project to fight gentrification, increase tenant protections, protect at-risk homeowners and advance progressive housing policy. #ResistGentrification."<br/> &nbsp;
*Initiative on Global Markets (at University of Chicago Booth School) [IGM 2012]. “[http://www.igmchicago.org/surveys/rent-control Rent Control]” [poll of economic experts].&nbsp;<br/> February 7th, 2012. [http://www.igmchicago.org/surveys/rent-control. http://www.igmchicago.org/surveys/rent-control.&nbsp;]<br/> ''Poll statement:&nbsp; “Local ordinances that limit rent increases for some rental housing units, such as in New York and San Francisco, have had a positive impact over the past three decades on the amount and quality of broadly affordable rental housing in cities that have used them.”&nbsp;<br/> 40 respondents.&nbsp;<br/> 0 Strongly Agree<br/> 2% Agree<br/> 7% Uncertain<br/> 49% Disagree<br/> 32% Strongly Disagree<br/> 2% No Opinion''<br/> &nbsp;
*Initiative on Global Markets (at University of Chicago Booth School) [IGM 2012]. “[http://www.igmchicago.org/surveys/rent-control Rent Control]” [poll of economic experts].&nbsp;<br/> February 7th, 2012. [http://www.igmchicago.org/surveys/rent-control. http://www.igmchicago.org/surveys/rent-control.&nbsp;]<br/> ''Poll statement:&nbsp; “Local ordinances that limit rent increases for some rental housing units, such as in New York and San Francisco, have had a positive impact over the past three decades on the amount and quality of broadly affordable rental housing in cities that have used them.”&nbsp;<br/> 40 respondents.&nbsp;<br/> 0 Strongly Agree<br/> 2% Agree<br/> 7% Uncertain<br/> 49% Disagree<br/> 32% Strongly Disagree<br/> 2% No Opinion''<br/> &nbsp;
*KQED Forum. “[https://ww2.kqed.org/forum/2018/01/09/a-bill-to-repeal-longstanding-rent-control-limits-gets-a-public-hearing/ A Bill to Repeal California Rent Control Limits Gets A Public Hearing.]” (radio show, archived with Dean Preston, Tenants Together, and Debra Carlton, California Apartment Association). KQED, Jan 10, 2018.<br/> [https://ww2.kqed.org/forum/2018/01/09/a-bill-to-repeal-longstanding-rent-control-limits-gets-a-public-hearing/ https://ww2.kqed.org/forum/2018/01/09/a-bill-to-repeal-longstanding-rent-control-limits-gets-a-public-hearing/].<br/> &nbsp;
*KQED Forum. “[https://ww2.kqed.org/forum/2018/01/09/a-bill-to-repeal-longstanding-rent-control-limits-gets-a-public-hearing/ A Bill to Repeal California Rent Control Limits Gets A Public Hearing.]” (radio show, archived with Dean Preston, Tenants Together, and Debra Carlton, California Apartment Association). KQED, Jan 10, 2018.<br/> [https://ww2.kqed.org/forum/2018/01/09/a-bill-to-repeal-longstanding-rent-control-limits-gets-a-public-hearing/ https://ww2.kqed.org/forum/2018/01/09/a-bill-to-repeal-longstanding-rent-control-limits-gets-a-public-hearing/].<br/> &nbsp;
*Legislative Analysts Office (California).&nbsp;[http://www.lao.ca.gov/ballot/2017/170629.pdf Review of proposed statutory initiative pertaining to rent control (A.G. File No. 17-0041)].&nbsp;12 Dec 2017.&nbsp;[http://www.lao.ca.gov/ballot/2017/170629.pdf http://www.lao.ca.gov/ballot/2017/170629.pdf].<br/> &nbsp;
*Legislative Analysts Office, California (LAO 2017).&nbsp;[http://www.lao.ca.gov/ballot/2017/170629.pdf Review of proposed statutory initiative pertaining to rent control (A.G. File No. 17-0041)].&nbsp;12 Dec 2017.&nbsp;[http://www.lao.ca.gov/ballot/2017/170629.pdf http://www.lao.ca.gov/ballot/2017/170629.pdf].<br/> &nbsp;
*Legislative Analysts Office, California (LAO 2016). “[http://www.lao.ca.gov/Publications/Report/3345 Perspectives on Helping Low-Income Californians Afford Housing].” &nbsp;February 9, 2016. [http://www.lao.ca.gov/Publications/Report/3345. http://www.lao.ca.gov/Publications/Report/3345.&nbsp;]<br/> &nbsp;
*Levin, Matt, and Liam Dillon. “[https://soundcloud.com/matt-levin-4/is-rent-control-good-or-bad-with-aids-healthcare-president-michael-weinstein Is Rent Control Good or Bad, with AIDS Healthcare Foundation President Michael Weinstein.]” Gimme Shelter: The California Housing Crisis Podcast, Nov 22, 2017.<br/> [https://soundcloud.com/matt-levin-4/is-rent-control-good-or-bad-with-aids-healthcare-president-michael-weinstein https://soundcloud.com/matt-levin-4/is-rent-control-good-or-bad-with-aids-healthcare-president-michael-weinstein].<br/> &nbsp;
*Levin, Matt, and Liam Dillon. “[https://soundcloud.com/matt-levin-4/is-rent-control-good-or-bad-with-aids-healthcare-president-michael-weinstein Is Rent Control Good or Bad, with AIDS Healthcare Foundation President Michael Weinstein.]” Gimme Shelter: The California Housing Crisis Podcast, Nov 22, 2017.<br/> [https://soundcloud.com/matt-levin-4/is-rent-control-good-or-bad-with-aids-healthcare-president-michael-weinstein https://soundcloud.com/matt-levin-4/is-rent-control-good-or-bad-with-aids-healthcare-president-michael-weinstein].<br/> &nbsp;
*McFadden, Chuck. “[http://capitolweekly.net/rent-control-2018-ballot/ Rent control may roil 2018 ballot.]” ''Capitol Weekly.'' [http://capitolweekly.net/rent-control-2018-ballot/. http://capitolweekly.net/rent-control-2018-ballot/.&nbsp;]<br/> &nbsp;
*McFadden, Chuck. “[http://capitolweekly.net/rent-control-2018-ballot/ Rent control may roil 2018 ballot.]” ''Capitol Weekly.'' [http://capitolweekly.net/rent-control-2018-ballot/. http://capitolweekly.net/rent-control-2018-ballot/.&nbsp;]<br/> &nbsp;
*McFarlane, Alastair. “Rent stabilization and the long-run supply of housing.” Regional Science and Urban Economics, Volume 33, Issue 3, May 2003, Pages 305-333.&nbsp;DOI: 10.1016/S0166-0462(02)00031-5<br/> [https://doi.org/10.1016/S0166-0462(02)00031-5 https://doi.org/10.1016/S0166-0462(02)00031-5].<br/> ''"Abstract:&nbsp;<br/> This paper examines the impact of moderate rent controls on the construction and replacement of urban housing. It studies a common form of rent regulation that limits rent growth to below-market increases but permits landlords to set the base rent at free market levels and allows them to re-set rents when the incumbent tenant vacates, after which rents are re-controlled (‘vacancy decontrol–recontrol’). '''One of the primary insights is that neither the timing nor the density of construction is affected by rent stabilization when base rents are perfectly flexible. Allowing landlords to set the initial contract rent lets them capture the benefits to the renter of rent stabilization. Perfect capitalization of rent stabilization into a higher base rent provides the landlord with a free market rate of return and thus does not distort development activity.''' However, redevelopment of land will be hastened because rent stabilization complemented by vacancy decontrol–recontrol increases the difference between rents before and after redevelopment, increasing the opportunity costs of postponing redevelopment. Extensions include an analysis of other common rent regulations and the impact of rent stabilization on the urban rent gradient."''<br/> &nbsp;
*McFarlane, Alastair. “Rent stabilization and the long-run supply of housing.” Regional Science and Urban Economics, Volume 33, Issue 3, May 2003, Pages 305-333.&nbsp;DOI: 10.1016/S0166-0462(02)00031-5<br/> [https://doi.org/10.1016/S0166-0462(02)00031-5 https://doi.org/10.1016/S0166-0462(02)00031-5].<br/> ''"Abstract:&nbsp;<br/> This paper examines the impact of moderate rent controls on the construction and replacement of urban housing. It studies a common form of rent regulation that limits rent growth to below-market increases but permits landlords to set the base rent at free market levels and allows them to re-set rents when the incumbent tenant vacates, after which rents are re-controlled (‘vacancy decontrol–recontrol’). '''One of the primary insights is that neither the timing nor the density of construction is affected by rent stabilization when base rents are perfectly flexible. Allowing landlords to set the initial contract rent lets them capture the benefits to the renter of rent stabilization. Perfect capitalization of rent stabilization into a higher base rent provides the landlord with a free market rate of return and thus does not distort development activity.''' However, redevelopment of land will be hastened because rent stabilization complemented by vacancy decontrol–recontrol increases the difference between rents before and after redevelopment, increasing the opportunity costs of postponing redevelopment. Extensions include an analysis of other common rent regulations and the impact of rent stabilization on the urban rent gradient."''<br/> &nbsp;
*Munch, J. R., & Svarer, M. (2002). "Rent control and tenancy duration." ''Journal of Urban Economics'', 52(3), 542–560.<br/> &nbsp;
*Murphy, Katy. “[https://www.mercurynews.com/2018/01/11/california-considers-repealing-rent-control-restrictions/ Committee kills proposal to lift rent control restrictions in California.]” Mercury News, 11 Jan 2018.<br/> [https://www.mercurynews.com/2018/01/11/california-considers-repealing-rent-control-restrictions/ https://www.mercurynews.com/2018/01/11/california-considers-repealing-rent-control-restrictions/].<br/> &nbsp;
*Murphy, Katy. “[https://www.mercurynews.com/2018/01/11/california-considers-repealing-rent-control-restrictions/ Committee kills proposal to lift rent control restrictions in California.]” Mercury News, 11 Jan 2018.<br/> [https://www.mercurynews.com/2018/01/11/california-considers-repealing-rent-control-restrictions/ https://www.mercurynews.com/2018/01/11/california-considers-repealing-rent-control-restrictions/].<br/> &nbsp;
*Murphy, Katy. “[https://www.mercurynews.com/2018/01/11/california-considers-repealing-rent-control-restrictions/ California considers repealing rent control restrictions.]” Mercury News. 11 January 2018. [https://www.mercurynews.com/2018/01/11/california-considers-repealing-rent-control-restrictions/. https://www.mercurynews.com/2018/01/11/california-considers-repealing-rent-control-restrictions/.&nbsp;]<br/> &nbsp;
*Murphy, Katy. “[https://www.mercurynews.com/2018/01/11/california-considers-repealing-rent-control-restrictions/ California considers repealing rent control restrictions.]” Mercury News. 11 January 2018. [https://www.mercurynews.com/2018/01/11/california-considers-repealing-rent-control-restrictions/. https://www.mercurynews.com/2018/01/11/california-considers-repealing-rent-control-restrictions/.&nbsp;]<br/> &nbsp;
*Murphy, Katy. “[https://www.mercurynews.com/2017/11/02/rent-control-policy-likely-fueled-the-gentrification-of-san-francisco-study-finds/ Rent-control policy `likely fueled the gentrification of San Francisco,’ study finds.]” The Mercury News, 2 November 2017. &nbsp;[https://www.mercurynews.com/2017/11/02/rent-control-policy-likely-fueled-the-gentrification-of-san-francisco-study-finds/ https://www.mercurynews.com/2017/11/02/rent-control-policy-likely-fueled-the-gentrification-of-san-francisco-study-finds/].<br/> ''(referring to [Diamond et al 2017]).&nbsp;''<br/> &nbsp;
*Murphy, Katy. “[https://www.mercurynews.com/2017/11/02/rent-control-policy-likely-fueled-the-gentrification-of-san-francisco-study-finds/ Rent-control policy `likely fueled the gentrification of San Francisco,’ study finds.]” The Mercury News, 2 November 2017. &nbsp;[https://www.mercurynews.com/2017/11/02/rent-control-policy-likely-fueled-the-gentrification-of-san-francisco-study-finds/ https://www.mercurynews.com/2017/11/02/rent-control-policy-likely-fueled-the-gentrification-of-san-francisco-study-finds/].<br/> ''(referring to [Diamond et al 2017]).&nbsp;''<br/> &nbsp;
*Reyes, Emily Alpert, and David Zahniser. “[http://www.latimes.com/local/lanow/la-me-ln-aids-foundation-political-spending-20170221-story.html http://www.latimes.com/local/lanow/la-me-ln-aids-foundation-political-spending-20170221-story.html][[So_why_is_an_AIDS_nonprofit_suing_to_halt_construction_and_pushing_for_Measure_S?|So why is an AIDS nonprofit suing to halt construction and pushing for Measure S?]]” ''LA Times,'' 24 February 2017. [http://www.latimes.com/local/lanow/la-me-ln-aids-foundation-political-spending-20170221-story.html http://www.latimes.com/local/lanow/la-me-ln-aids-foundation-political-spending-20170221-story.html].<br/> &nbsp;
*Shaw, Randy. "Will Voters Repeal Costa-Hawkins in 2018?"&nbsp; ''Beyond Chron.&nbsp;''October 26, 2017.&nbsp;<br/> [http://www.beyondchron.org/will-voters-repeal-costa-hawkins-2018/ [1]].<br/> ''Argues that Costa Hawkins repeal by ballot initiative in 2018 will be quite difficult, because of controversy around the initiative's key backer, and competing for attention/support&nbsp;with housing bond issue to be on the same ballot.&nbsp;''<br/> &nbsp;
*Sims, D. P. (2007). "Out of control: What can we learn from the end of Massachusetts rent control?" ''Journal of Urban Economics'', 61(1), 129–151.<br/> &nbsp;
*Socialist International. "Declaration of Principles." 1989.&nbsp;[http://www.socialistinternational.org/viewArticle.cfm?ArticleID=31. http://www.socialistinternational.org/viewArticle.cfm?ArticleID=31.&nbsp;]<br/> ''Principle 57: "Human rights include economic and social rights; the right to form trade unions and to strike; the right to social security and welfare for all, including the protection of mothers and children; the right to education, training and leisure; the right to decent housing in a liveable environment."''<br/> &nbsp;
*Stern, Mark Joseph. “[http://www.slate.com/blogs/outward/2014/09/10/michael_weinstein_of_the_aids_healthcare_foundation_hates_truvada_don_t.html The Enfant Terrible of AIDS Activism Reaches a New Low.]” ''Slate'', 10 Sept 2014. [http://www.slate.com/blogs/outward/2014/09/10/michael_weinstein_of_the_aids_healthcare_foundation_hates_truvada_don_t.html. http://www.slate.com/blogs/outward/2014/09/10/michael_weinstein_of_the_aids_healthcare_foundation_hates_truvada_don_t.html.&nbsp;]<br/> ''"opportunistic malfeasance for the sole purpose of 'gold-mining the press.'" says activist Peter Staley.''<br/> &nbsp;
*Weinstein, Michael, Elena Popp, and Christina Livington. “[https://oag.ca.gov/system/files/initiatives/pdfs/17-0041%20(Affordable%20Housing)_0.pdf Affordable Housing Act]” (filing letter). &nbsp;20 October 2017<br/> [https://oag.ca.gov/system/files/initiatives/pdfs/17-0041%20(Affordable%20Housing)_0.pdf. https://oag.ca.gov/system/files/initiatives/pdfs/17-0041%20%28Affordable%20Housing%29_0.pdf.&nbsp;]<br/> &nbsp;
*Weinstein, Michael, Elena Popp, and Christina Livington. “[https://oag.ca.gov/system/files/initiatives/pdfs/17-0041%20(Affordable%20Housing)_0.pdf Affordable Housing Act]” (filing letter). &nbsp;20 October 2017<br/> [https://oag.ca.gov/system/files/initiatives/pdfs/17-0041%20(Affordable%20Housing)_0.pdf. https://oag.ca.gov/system/files/initiatives/pdfs/17-0041%20%28Affordable%20Housing%29_0.pdf.&nbsp;]<br/> &nbsp;
*Wikipedia. "[https://en.wikipedia.org/wiki/Rent_regulation Rent regulation.]"&nbsp;[https://en.wikipedia.org/wiki/Rent_regulation https://en.wikipedia.org/wiki/Rent_regulation].<br/> &nbsp;
*Wikipedia. "[https://en.wikipedia.org/wiki/Rent_regulation Rent regulation.]"&nbsp;[https://en.wikipedia.org/wiki/Rent_regulation https://en.wikipedia.org/wiki/Rent_regulation].<br/> &nbsp;
*Wikipedia. "[https://en.wikipedia.org/wiki/Costa-Hawkins_Rental_Housing_Act Costa-Hawkins Rental Housing Act.]"&nbsp;[https://en.wikipedia.org/wiki/Costa-Hawkins_Rental_Housing_Act [1]].&nbsp;<br/> &nbsp;
*Wikipedia. "[https://en.wikipedia.org/wiki/Costa-Hawkins_Rental_Housing_Act Costa-Hawkins Rental Housing Act.]"&nbsp;[https://en.wikipedia.org/wiki/Costa-Hawkins_Rental_Housing_Act [1]].&nbsp;<br/> &nbsp;
*Willis, John W. “[http://scholarship.law.cornell.edu/clr/vol36/iss1/3 Short History of Rent Control Laws,]” 36 Cornell L. Rev. 54 (1950).&nbsp;[http://scholarship.law.cornell.edu/clr/vol36/iss1/3 http://scholarship.law.cornell.edu/clr/vol36/iss1/3].
*Willis, John W. “[http://scholarship.law.cornell.edu/clr/vol36/iss1/3 Short History of Rent Control Laws,]” 36 Cornell L. Rev. 54 (1950).&nbsp;[http://scholarship.law.cornell.edu/clr/vol36/iss1/3 http://scholarship.law.cornell.edu/clr/vol36/iss1/3].

<br/> [https://twitter.com/search?f=tweets&q=#AB1506%20OR%20#CostaHawkins%20OR%20#RepealCostaHawkins%20OR%20“Costa%20Hawkins”%20&src=typd Twitter tracker link]: (search for: #AB1506 OR #CostaHawkins OR #RepealCostaHawkins OR “Costa Hawkins”)<br/> <br/> &nbsp;

Latest revision as of 04:44, 15 February 2018

California Assembly hearing for AB 1506 Costa Hawkins repeal

In 2017 two efforts launched to repeal the Costa-Hawkins Rental Housing Act ("Costa-Hawkins"), a California state law enacted in 1995 which places limits on municipal rent control ordinances. Costa-Hawkins a) excludes single-family homes including condos; b) excludes buildings built after 1995 or when a city's rent-control law passed; and c) prohibits vacancy control, i.e. it controlling the rent for a new tenant. 

In California, rent control laws are enacted by municipalities, and as of 2018 about 15 of the 482 have done so. 

See California housing legislation 2018 for all housing bills.

Costa Hawkins Act terms

Single-family homes exclusion

Prohibition of vacancy control

Exclusion of new buildings (after 1995 or when city rent-control law passed)

Other

  • For the five cities with "vacancy control" the Act is phased-in.[39] 
  • It situates government contracts with owners about rent charged, and the effects of a notice of violation, e.g., about health or safety.[40] 
  • Costa-Hawkins also addresses subtenancies,[41] and other issues.[42]
  • 2002 amendment related to condominium conversion.
    It prevented owners of apartment buildings, who obtained a certificate for conversion, to avail themselves of the Act's exemption to rent control law, without actually selling any of such apartments as condominiums.[43]

 

AB 1506 bill to repeal Costa Hawkins

AB-1506 Residential rent control: Costa-Hawkins Rental Housing Act is a bill introduced in the California State Legislature in 2017 to repeal the 1995 Costa-Hawkins Rental Housing Act which places limits on municipal rent control ordinances.

Lead Authors: Bloom (Assemblymember, D-Santa Monica) , Rob Bonta (Assemblymember, D-Alameda) , David Chiu (Assemblymember, D-San Francisco)

In the key Jan 11 Hearing at Housing and Community Development Commitee, it failed to receive the necessary majority vote to be passed out of committee. 

Marc Steinorth @MarcSteinorth ‏(R-San Bernardino) - NO
Jim Wood @JimWoodAD2 (D-Healdsburg) - ABSTAIN
Ed Chau @AsmEdChau (D-East LA) - ABSTAIN
Steven S. Choi @DrStevenChoi (R-Irvine) - NO
David Chiu @DavidChiu (chair, San Francisco) - YES
Mark Stone @AsmMarkStone - YES
Rob Bonta @RobBonta (D-Oakland / East Bay) - YES

(Stone & Bonta were at hearing in place of absent committee members Todd Gloria @ToddGloria, Monique Limon @AsmMoniqueLimon) 
Committee: http://ahcd.assembly.ca.gov/membersstaff. 

Dillon, Liam. “Proposal to expand rent control in California fails to advance.” LA Times, 11 January 2018. 
 

2018 ballot initiative to repeal Costa-Hawkins

The California Local Rent Control Initiative (original title, Affordable Housing Act) is a 2018 California ballot initiative to repeal the 1995 Costa-Hawkins Rental Housing Act which places limits on municipal rent control ordinances. It was filed on filed 23 October 2017 by Michael Weinstein, Elena Popp, and Christina Livington. 

A similar measure was proposed as legislative bill AB 1506, filed in 2017, but this failed to pass out of the housing committee in a vote on 11 January 2018. 

Text of Initiative (from Ballotpedia). 
 

 

Proponents 

Michael Weinstein 

co-signer of filing letter. Director of AIDS Healthcare Foundation, Los Angeles.  (@AIDSHealthcare)

Elena Popp

co-signer of filing letter. 

Christina Livington

co-signer of filing letter. 

Alliance of Californians for Community Empowerment

"The Alliance of Californians for Community Empowerment (ACCE) Action is a grassroots, member-led, statewide community organization working with more than 10,000 members across California. ACCE is dedicated to raising the voices of everyday Californians, neighborhood by neighborhood, to fight for the policies and programs we need to improve our communities and create a brighter future."
http://www.acceaction.org/about.  @CalOrganize

LA Voice

Damien Goodmon / Housing Is A Human Right project (AIDS Healthcare Foundation)

@HousingHumanRt

 

Opponents

California Apartment Association 

California Association of Realtors

 

Related statements opposing full Costa-Hawkin repeal

North Bay Assemblyman Jim Wood on why he declined to vote AB1506 repeal bill out of Housing committee:
"I am not confident that a complete repeal of #CostaHawkins is the answer. I’m concerned that this bill does nothing to facilitate an increase in the supply of housing..."  via @KQEDnews

 

Issues / Concerns

General arguments for and against rent control

see: Wikipedia, "Rent control in the United States"

"The rental-accommodation market suffers from information asymmetries and high transaction costs. Typically, a landlord has more information about a home than a prospective tenant can reasonably detect. Moreover, once the tenant has moved in, the costs of moving again are very high. Unscrupulous landlords could conceal defects and, if the tenant complains, threaten to raise the rent at the end of the lease. With rent control, tenants can request that hidden defects, if they exist, be repaired to comply with building code requirements, without fearing retaliatory rent increases. Rent control could thus compensate somewhat for inefficiencies of the housing market."

By limiting the extent to which landlords can raise rent on purportedly depreciated property, rent control restores balance to tax benefits otherwise received primarily by homeowners and landlords.

Rent control may reduce instability and associated external costs. 

"Rent stabilization (for a current tenant) may be considered a basic form of consumer protection: once tenants move into a vacant unit at market rents they can afford and establish lives in these homes, they won't have to renegotiate. Without rent regulation, landlords can demand any amount and tenants must either pay or move. Thus, tenants can become vulnerable to arbitrary and extortionate increases above market value."

The Socialist International argues that housing is a positive human right[34] that equals or exceeds the property rights of landlords.

 

Expanding rent control could disincent creation of new rental housing

[LAO 2016]:
"The state’s shortage of housing also presents challenges for expanding rent control policies. Proposals to expand rent control often focus on two broad changes: (1) expanding the number of housing units covered—by applying controls to newer properties or enacting controls in locations that currently lack them—and (2) prohibiting landlords from resetting rents to market rates for new tenants. Neither of these changes would increase the supply of housing and, in fact, likely would discourage new construction."

also [NAR 2018].


 

Rent control encourages conversation of rental units to owned units (e.g. apartment to condos)

Kenneth Stahl‏ @kookie13 12:20 PM - 11 Jan 2018
what's the point of repealing C-H if landlords can just convert to condos?
Don't we need to amend the Ellis Act to limit condo conversion before repealing C-H?

also [CAR 2018]. 

 

Rent control encourages leaving apartments vacant

[CAR 2018]

 

Rent control doesn't necessarily serve lower-income households

"Requiring landlords to charge new tenants below–market rents would not eliminate this competition. Households would have to compete based on factors other than how much they are willing to pay. Landlords might decide between tenants based on their income, creditworthiness, or socioeconomic status, likely to the benefit of more affluent renters." 
- [LAO 2016]. 


'Lock-in effect': rent control incents people to stay in a home longer than they otherwise would
 

"Households residing in affordable housing (built via subsidized construction or inclusionary housing) or rent–controlled housing typically pay rents well below market rates. Because of this, households may be discouraged from moving from their existing unit to market–rate housing even when it may otherwise benefit them—for example, if the market–rate housing would be closer to a new job. This lock–in effect can cause households to stay longer in a particular location than is otherwise optimal for them."
- [LAO 2016].

Rent control can disincent maintainance, repairs, and renovation

"Declining Quality of Housing. By depressing rents, rent control policies reduce the income received by owners of rental housing. In response, property owners may attempt to cut back their operating costs by forgoing maintenance and repairs. Over time, this can result in a decline in the overall quality of a community’s housing stock."


Costa Hawkins repeal could provide NIMBYs a New Tool to block housing

[CAR 2018]

also https://caanet.org/caa-assembly-select-committee-nimbys-drive-costs-housing/. 

 

Should these rent-control aspects be determined by the state or local governments?

 

Problems with using intiative process

Assemblymember Richard Bloom (D-Santa Monica), sponsor of AB1506 repeal bill: 

“At the same time, while I understand why some want to put this change on the ballot, it is never ideal to address a complicated issue like this through the initiative process,” Bloom said.  “First and foremost, the initiative process is a simple up or down vote that does not allow for any public input, shuts down dialogue amongst stakeholders, and prevents anyone from making changes to address any concerns raised by those impacted by the proposal. “Secondly, if there are unintended consequences down the road that need to be fixed, it will require a 2/3 vote of each house of the Legislature – a threshold not easily achieved.  For these reasons, something this complicated is better left to the legislative process. AB 1506 remains a vehicle for responsible dialogue and, I hope, legislation that will ease the economic burden that is affecting so many Californians.”
 - quoted in 

 

 

Proposals for revisions and alternative reforms 

Rolling rent control 

(make rent control apply to buildings only after a certain time - 10, 20, 30 years.)
 

East Bay For Everyone: 
"we support a rolling phase in period for rent control of, for example, 10 years after the issuance of an occupancy permit, so that rent control does not render new homebuilding economically infeasible." 
In support letter for AB1506.  See [East Bay for Everyone, 2017].


“providing a rolling definition of what ‘new construction’ is.”  - Rob Bonta, at Jan 11 2018 hearing. 
 

@housingforLA supports. 


alon_levy‏ @alon_levy 2:02 PM - 11 Jan 2018
Replying to @IDoTheThinking
"Alternative: tie SB 827 with a statewide ban on rent control. All of today's RC units become market-rate at an integer # of tenancy years."

 

Belmont Renters‏ @BelmontRenters 3:54 PM - 11 Jan 2018
Replying to @MarcSteinorth
"What about rent control on buildings that are 20 years old? Payback period for new construction is rarely longer than 10 years."


matthewplan‏ @matthewplan 1:10 AM - 12 Jan 2018
Replying to @weel @VamonosLA
"The argument is let different cities make their own policies and not let Costa Hawkins tie hands. Though there likely should be some year limit - 25 years after construction - to ensure new construction isn’t impacted."

 

Means-tested rent control 

Paavo Monkkonen‏ @elpaavo 10:34 AM - 11 Jan 2018
"also, why don't people talk means-tested rent control. obvs more complex but would remove key argument against"

Henry Fung‏ @calwatch 10:39 AM - 11 Jan 2018
Replying to @elpaavo
"Would discourage rentals to poor, create cliff effects, etc. If you wanted this, then broaden rent subsidies and fund it with general taxation."

Shane Phillips‏ @shanedphillips 11:07 AM - 11 Jan 2018
Replying to @elpaavo
"One big challenge would be landlords -- seems like it'd give VERY strong incentive to avoid lower income people, since the savings to renters come out of the owners' pockets."

Pedro‏ @peterpedroson 12:08 PM - 11 Jan 2018
Replying to @elpaavo
"I think means testing would remove the middle class as a constituency for maintaining RC"
 

Combine rent control and upzoning

YIMBYwiki @YIMBYwiki 5:19 PM - 10 Jan 2018
Replying to @ebarcuzzi @MattRegan10 and 2 others
"@TommSciortino another possible angle is to bundle/trade  #CostaHawkins reform with major housing-creation support like #SB827"
 

Victoria Fierce, legal anarchist‏ @tdfischer_ 9:31 AM - 11 Jan 2018 https://twitter.com/tdfischer_/status/951506926214369280
"CAA witness says developers are afraid of uncertainty with AB 1506... May I suggest tying this to SB827 as a grand bargain.


Paavo Monkkonen @elpaavo 9:44 AM - 11 Jan 2018
instead of arguing about which approach is better, do both!
https://twitter.com/elpaavo/status/951510029969932288

Paavo Monkkonen @elpaavo
I meant upzoning + rent control, both would be free! and one would even generate $$$


Dragonfly on Deck @IDoTheThinking 1:25 PM - 11 Jan 2018
"Tie the #RepealCostaHawkins bill with SB 827 so that they can work off each other. Subsequent votes."


this socialist blocks parvenus @TribTowerViews 1:33 PM - 11 Jan 2018
Replying to @IDoTheThinking
"Amend SB827 to add relocation payments, right of return and prevailing wage.
Amend CH to allow RC on existing units and new construction after (x) years."


Brian Hanlon  @hanlonbt 1:47 PM - 11 Jan 2018 
Replying to @TribTowerViews @IDoTheThinking
"SB 827 is going to be hard enough to pass as it is. Tenant advocates couldn't even get Costa Hawkins reform out of the policy committee chaired by its coauthor. SB 827 dies if we pair CH reform with it."


Victoria Fierce, legal anarchist‏  @tdfischer_ 1:59 PM - 11 Jan 2018
Replying to @hanlonbt @cjg2127 and 2 others
"This yimby also would love nothing more than pair CH with SB827 in a way that addresses all of the concerns about housing supply brought up in committee today such that everything passes and the fauxgressives get peeled off of the leftist/nimby nightmare coalition."


Dragonfly on Deck‏  @IDoTheThinking 2:32 PM - 11 Jan 2018
Replying to @tdfischer_ @hanlonbt and 2 others
"Pair them only in the sense that they both are voted on within close timeframes. It wouldnt be wise to actually couple those bills into 1 legislation. Right wing Homeowner associations are stronger than crazy peeps with blogs."
 

Housing For LA  @housingforla 12:53 PM - 11 Jan 2018 
More Housing For LA  Retweeted Matt Levin
"California Apartment Association doing exactly what I wrote in my article yesterday (open to negotiating on 1995 provision). There is a grand bargain package out there. Californians will figure it out together."

Matt Levin @mlevinreports 12:53 PM - 11 Jan 2018
"Bloom making point that after committee vote you can still change bill in debate. CAA says it may be open to negotiating on 1995 provision."
 

alon_levy‏ @alon_levy 2:02 PM - 11 Jan 2018
Replying to @IDoTheThinking
"Alternative: tie SB 827 with a statewide ban on rent control. All of today's RC units become market-rate at an integer # of tenancy years."

 

Exclude single-family homes

JFK→NRT→SIN→IAD→NRT→BOS→JFK→OAK→JFK‏  @Maxtropolitan 2:30 PM - 11 Jan 2018
Replying to @sporc_ca @TribTowerViews and 3 others
"What makes the total repeal hard, statewide, is that he didn't include an individual homeowner exemption, and that homeowners vote more often than renters do. 
If there was an individual homeowner exemption, it'd win easily."

 

Guillotines for property owners

from Jacob Woocher‏  @jacobwooch 3:41 PM - 11 Jan 2018: 

Costa-Hawkins-repeal-by-guillotine-Jacob-Woocher.jpg

 

 

 

See Also

References


 


Twitter tracker link: (search for: #AB1506 OR #CostaHawkins OR #RepealCostaHawkins OR “Costa Hawkins”)

 

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