The Law of Unintended Consequences is often not understood in Sacramento. In fact much of what emanates from the Legislature and the Gavinor appears to reinforce the Law of Totally Expected Consequences. OK, I just made that last Law up, but that doesn't mean it's not accurate. The LA Times describes the latest instance
“We are pleased to announce we have come to an agreement on a series of amendments to AB 1482 that would create strong renter protections,” said a statement from Newsom, Senate leader Toni Atkins (D-San Diego), Assembly Speaker Anthony Rendon (D-Lakewood) and bill author Assemblyman David Chiu (D-San Francisco). “The bill will protect millions of renters from rent-gouging and evictions and build on the Legislature’s work this year to address our broader housing crisis.”
Applying the KISS principle to analyzing AB 1482, one can only conclude that the bill guarantees 5% + inflation rent increases for a huge majority of renters every year for the foreseeable future. Why would any landlord do anything else after being told that is the limit of what is acceptable (and legal)? As someone who is neither landlord nor renter, but an interested observer this is a totally expected consequence--as will be the calls for more taxpayer dollars to go to state-subsidized, "affordable" housing. Bet on it.
As someone who finds rent control not only an overreach of government intrusion (it also keeps rents artificially high), I applaud the fact that I can now raise rent over 5% a year (+inflation rate) without worrying that I'm gouging anyone. I can just point to Newsom and tell my tenants to take the matter up with him and the other Dems who supported this dumb law.
Ka-ching!
Posted by: let's light this candle | September 17, 2019 at 07:41 AM
Calling it a cap is only half true because the 5%+ also becomes the floor.
Posted by: Cap Equals Floor | September 17, 2019 at 01:09 PM