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California Proposition 10, Local Rent Control Initiative

CALIFORNIA PROPOSITION 10

LOCAL RENT CONTROL INITIATIVE

 

In 1995, the California Legislature passed and the Governor signed AB 1164 – a law that is known as the Costa-Hawkins Rental Housing Act.  Costa-Hawkins provides that housing constructed after 1995 must be exempt from local rent controls; new housing that was already exempt from a local rent control law in place before February 1, 1995 must remain exempt; single family homes and other units like condominiums that are separate from the title to any other dwelling units must be exempt from local rent controls; and rental property owners must have the ability to establish their own rental rates when dwelling units change tenancy.  This law cleared the way for owners in rent control communities to establish initial rental rates when there was a change in occupancy at a dwelling unit, a policy known as vacancy decontrol.

Prior to the enactment of Costa-Hawkins, local governments were permitted to enact rent control, provided that landlords would receive just and reasonable returns on their rental properties.

Proposition 10, otherwise known as the Local Rent Control Initiative, is on the ballot in California as an initiated state statute on November 6, 2018.  A yes vote supports allowing local governments to adopt rent control, repealing Costa-Hawkins.  A no vote opposes the initiative, thus keeping the Costa-Hawkins and continuing to prohibit local governments from enacting rent control on certain buildings.

The campaigns surrounding Proposition 10 have raised a combined $23.82 million.  Opponents of Proposition 10 have out-raised the support campaign eight-to-one.  The California Apartment Association (CAA) and the California Rental Housing Association (CalRHA) each organized a PAC to oppose Proposition 10.  A third PAC – No on Prop 10 – was also formed.  The three committees had raised a combined $21.29 million.

The San Francisco Chapter of the Institute of Real Estate Manager (IREM) joins the PACs and other California IREM chapters in opposing Proposition 10.

Vanessa Oldenkamp Honey, CPM

President-Elect, IREM SF Chapter

August 9, 2018

President Message June 2018

Let’s start with politics:

During the primaries, Californians decided on state propositions 68, 69, 70, 71, 72.

Also, voters cast votes for other seats, including Governor, Lt. Governor, Attorney General, Insurance Commissioner and Secretary of State with some heading for a run-off in November.

Other large cities in our area had mayoral races also, including San Francisco and San Jose.

Are election outcomes important to us and what advocacy means?  You bet.

As IREM members, did you know you can support this association by contributing to RPAC, REALTORS® Political Action Committee.  It is one of the strongest advocacy organizations nationally; from Washington DC to your state capitol, investing in RPAC allows us to be involved as “players in the game and not just a bystander”.  Remember that real estate is our profession and politics is also our business. RPAC is non-partisan in its selection of candidates.

For more information visit-www.nar.realtor/rpac

Furthermore, our IREM California statewide Co-Chairs, Jeff Hickox and Bill Sheridan, from the San Diego and Sacramento Chapters, respectively, have been working hard on our behalf while collaborating with numerous stakeholders while in conjunction with California Business Properties Association (www.cbpa.com) on important issues that may be coming up in the November ballot, such as Split Roll Tax and repealing of Costa Hawkins Rental Housing Act. 

You can help make an impact if you are interested.    

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Back here at home, 2018 has been a very productive year with special programs and initiatives.

-Our February luncheon at Scott’s Seafood in Walnut Creek featured four outstanding panelists on the topic of “Force Majuere”.

-Our April luncheon at Michaels at Shoreline in Mountain View featured four phenomenal panelists on the topic of “Affordable housing / Google’s 10,000 units”

-Our April mixer at HopMonk in Novato was timely which we will be able to donate net proceeds exceeding $100 to Rose Foundation’s The Just and Resilient Forward Fund to assist impacted and deserving families who lost their residences from last year’s wine country fire.   

Otherwise, our events seem to be gaining favor and below are some comments we heard:

Walnut Creek-

“This luncheon was outstanding; it totally exceeded my expectations- super program and topic”  

Mountain View-

“Really informative and terrific place to have it; please consider having the luncheons here all the time- a winner”

Novato-

“So glad I came and had lots of fun; let’s do it again!”

IREM- SF Bay Area’s chapter partnership with City of San Jose’s Sustainability and Environmental Services team along with and U.S Green Building Council’s Pacific region is beginning to take form with rollouts of stakeholder and energy management workshops. Furthermore and perhaps more importantly, California’s AB 802- Energy Benchmarking and Disclosure requires real estate operators to begin implementing this new law.      

The May 16th annual CREATE Gala in San Francisco was also filled with energy and camaraderie. Several San Francisco State University students were recognized for their commitments to this profession.  This joint alliance with BOMA SF, BOMA OEB, NAIOP and IREM-SF Bay Area is heading in the right direction offering opportunities to the next generation of employees.

Are you interested in being an instructor or guest lecturer with CREATE? 

Seriously……  

Did you know?  A group of our chapter members working in Silicon Valley are gathering to spearhead creative events and programs to fill a niche.  With members actively involved in this manner, value will be created both personally and professionally.   Thumbs up!

Thank you for your attention and please plan on attending and supporting our upcoming mixers, vendor trade show, and wine tasting tour in partnership with IREM Sacramento Chapter.

Let’s continue having fun and do remain in touch!

Richard Lee, CPM®
IREM San Francisco Bay Area President