California lawmakers perform shameless act. Lap dogs for real estate industry

We know who runs California. The real estate industry continues to have a strangle hold on the State legislature.  In order to keep their  unfettered power, real estate industry and its lobbyists will spend whatever it takes to stop any pro tenant legislation.

 Big bucks are spent to crush legislation and defeat statewide ballot measures through disinformation and fake news. In 2018 the industry spent tens of millions of dollars to crush a statewide pro tenant ballot measure.

New York and Oregon have instituted strong tenant protections this year.

So much for “Progressive” California

Excepted from the San Francisco Chronicle 7.9.2019

SACRAMENTO — Lawmakers and landlords are haggling over how much California housing to carve out of a tenant protection bill that would cap rent increases and require a just cause for evictions.

In a state Senate committee Tuesday, AB1482 faced continued opposition from groups representing apartment owners, developers and real estate agents that could sink the measure in the final weeks of the legislative session.

Letitia James joins rent controlled tennants
NEW YORK, NY – MARCH 13: Residences of a building listen to New York State’s Attorney General Letitia James speak at a press conference to support rent controlled tenants who have been threatened with eviction because their landlord has filed for bankruptcy on March 13, 2019 in the East Village neighborhood of New York City. (Photo by Andrew Lichtenstein/Corbis via Getty Images)

The proposal has struggled to win support from legislators amid concerns that imposing new restrictions on landlords would discourage housing construction during a historic shortage.

In its current iteration, AB1482 would prohibit landlords from raising rents by more than 7 percent plus the regional cost of living increase, or a maximum of 10 percent, in a year.

The bill exempts owners of housing built in the previous 10 years and landlords who own 10 or fewer single-family homes. The law would expire in 2023, though lawmakers could renew it.

study by the Terner Center for Housing Innovation at UC Berkeley found that even with the exemptions, the cap would extend rent protections to 2.6 million to 4.6 million more households in California.

Assemblyman David Chiu, a San Francisco Democrat who is one of the authors of the bill, said the measure would protect tenants “without compromising the ability of landlords to make a healthy profit.”

Chiu said he would be open to a discussion about exempting owners of few multifamily units. But preempting local ordinances is anathema to the tenants’ rights groups that are sponsoring the bill.

Language from a companion measure requiring landlords to provide a just cause when evicting a renter, which was abandoned in the Assembly, was also recently added to AB1482.

Just causes would include a tenant failing to pay rent, breaching a rental agreement, creating a nuisance or engaging in criminal activity. The protection would not kick in until a tenant has been in a rental for a year. Renters evicted through no fault of their own, such as when a property is taken off the market, would receive relocation assistance from landlords equivalent to one month of rent.

Supporters argue that eviction protections are needed to make the rent cap effective. Otherwise, they say, landlords could just kick out tenants and raise rents by as much as they want. Landlords counter that thousands of available units are sitting idle because the owners would rather withhold them from the market than be stuck with a bad tenant they cannot evict because of local just-cause laws.

“We will be taking a step backwards with a policy that discourages development of new housing and will further worsen the housing crisis for Californians,” Sid Lakireddy, president of the California Rental Housing Association, said in a statement.

https://www.sfchronicle.com/politics/article/Rent-control-bill-struggles-in-California-14083866.php

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