Rent Control: Another Man's View

My take on the rent control issue making the circuit these days via petition has always been colored by the knowledge that it really hasn't worked anywhere it has been implemented.  I saw (still see) how the system is abused in Manhattan.  The logic just isn't there for it to be any kind of long term solution and it ends up hurting the exact constituency it is intended to help.  That's one view, but here is another from a letter writer to the Daily Journal.

I would very much like to hear the opinion of San Mateo’s city attorney, or that of a higher court, on the legality of rent control through voter referendum. In a city with a large renter population, it certainly should not be hard to get the signatures to put this self-serving initiative on the ballot.

Imagine if you owned a restaurant and the public voted to limit what restaurants could charge for their food. Would you think that would be right or legal?  If it passed, how would you adapt since there was nothing in the initiative to help control your rising expenses. You might reduce the quality of your food, cut back on staff or defer needed maintenance.

A similar response by landlords should not be unexpected if rent control is passed. It is easy to forget that a rental unit, like a restaurant, is a private business.  We are a country built on a free market system. It should not be that a free market system is good unless it adversely affects me.

As much as we would all like to be able to pass initiatives that would limit what gas stations could charge, or what a plumber could charge or what your car mechanic could charge, it would not be right and it should not be legal.

Steven Howard

Redwood City

He makes a good point.  It appears that the San Mateo petition has enough signatures if they are validated.  The B'game effort seems like a steeper hill to climb based on how many people I have seen who are willing to stop, listen and sign the papers.  Just my walking around impression.

 

Comments

[Daniel]

Here's an analogy. A class of second graders is generally well behaved, except for one child. That one child acts out and causes a ruckus. The teacher doesn't know who caused the problem, and no one will tell who is misbehaving. As a result, the teacher's only option is to punish the entire class. It isn't fair, but life isn't fair. The punishment isn't good for most of the class, since to them the punishment is arbitrary. The punishment isn't good for the teacher, as it's not the education she needs to teach. But there it is.

http://sanfrancisco.cbslocal.com/2016/03/03/97-year-old-burlingame-woman-fighting-eviction-dies/

Rent control is right, but there are no innocents here. Most of the bay area is buttressed by policies that favor people who are already here at the expense of anyone who comes here.

The only suggestion I've seen that's reasonable is to build more. But nothing gets built here either. Why has the old post office in downtown stood empty for over a year now.

[local motion]

Can you please clarify if you are for or against rent control. Your comment is hard to follow.

[Sue]

Going to a restaurant is not a fair analogy, it's not a basic need like housing. I think we can all agree the housing crisis is the result of increased demand & lack of supply.

Pros & cons to rent control vs no rent control. "Abuse" can go both ways. Landlords can raise rent $6k/month while their mortgage payments are unchanged. Or tenants never move out while market competition skyrockets. Let's all try to be kind and not take advantage of one another...

[local motion]

Just looking at mortgage payments in not a fair analogy. There is a lot more to running a rental property than the mortgage. Tons of maintenance on most Burlingame properties that are older. Late payments. All types of issues.

We don't all agree there is even a crisis. This is just another example of how the market adjusts itself.

[The Man]

Don't forget the insurance prices. Want to control something how about insurance control? And try to get something fixed. How about plumber price controls?

[Joe]

Here is your Independence Day special report quoted from the 6/7/16 Staff Report that Bill Meeker provided to the City Council. Happy "Independence Day"
--------------------------

As a component of his May Revise, Governor Brown proposed to reduce perceived additional costs and delays associated with the approval of housing developments containing specified percentages of affordable housing.

The proposal would eliminate public input and project level environmental analysis, restrict design review, and make approvals non-discretionary or “ministerial.” In brief, the proposal would allow developers to get their projects approved in an expedited timeframe based on whatever general plan and “objective” zoning criteria are in effect.

Approvals would be ministerial (by City staff) without public hearings, and would include not only project approvals but also zoning changes, variances and conditional use permits. Projects that would qualify would need to meet the following criteria:

 Newly constructed structures multifamily residential or mixed use developments with two or more dwelling units;

 On a “designated housing site” (i.e., a site that allows housing by general plan, zoning ordinance, or for which a certified environmental review document includes provisions to mitigate potential harm) or other site that is not prime farmland or farmland of statewide importance; wetlands; within a very high fire hazard severity zone; hazardous waste site; within a delineated earthquake fault zone; within a flood plain; or within a flood way.
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Can we vote on Burlxit instead of Brexit?

[Jennifer]

This would be very detrimental for Burlingame...

[Cathy Baylock]

Here is the "unintended consequence" of rent control that I think no one has even addressed. State law only allows rent control on properties whose structures were built by an arbitrary date of 1995 or before. So, if Mr. or Mrs. apartment building owner owns one of those beautiful 20's 30's or 40's buildings, is he/she now going to consider demolishing it and building new to avoid rent control? There is enough pressure to tear down our vintage housing stock due to the incredible land value beneath these structures. Many of these older buildings ARE affordable (yes, it's all relative folks) because they lack amenities such as dishwashers or in unit washers and dryers. I hope those of you who are pushing for rent control and also value the historic fabric of our city understand what you are asking for...this may come back to haunt you when beautiful, vintage architecture starts being replaced with high-density housing. Did you know the area around City Hall is zoned R-4 which allows up to 75 feet in building height? Thank about it, folks...

[Pots Newberg]

As said by Peter Salinas years ago: " Rent regulation, in short, does all the wrong things to all the wrong people. Providing decent housing for the poor is a noble goal, and there are sensible ways to go about it. Rent regulation is not one of them."

[Inquiring Minds]

Hey Cynthia C. How does it feel to screw the people you claim to be helping. Does the law firm you work for represent many landlords How about owners of older land. Who are you really working for.

[Rebel]

Many unintended things are happening, know some landlords are letting units sit empty till this plays out

[Rebel]

Just to let you know, I am a landlord and may have to evict my low paying tenants to protect my equality, all leases are month to month.

[Inquiring Minds]

Rent control doesn't work for either party. Period. These people are foolish and just a little power hungry. Fraud is common.

[rexfordjoan]

GREAT POST!