More bad ideas from Sacramento!
Below is a recent update from the executive chair of the SCHRA
More bad ideas from Sacramento! California is trying to solve the housing crisis with more regulations, eviction moratoriums, and rent control – when the real issue is that we need to build more homes.
Even if you think you understand the problem, you’ll want to check out this new interview with Daniel Yukelson, Executive Director of the Apartment Association of Greater Los Angeles. Yukelson breaks down exactly why the over-regulation of housing providers is making the housing shortage worse, not better. California’s laws are so broken they have made mom-and-pop landlords “subsidize” luxurious homes for people who can afford to pay rent, he explains.
We applaud Yukelson for this incisive summary of the housing crisis and how California’s bad policy decisions are making it even harder for folks to find a place to live. You can watch the video here YOUTUBE VIDEO
You may ask yourself, why did Alan send this video about rent control in Los Angeles? Well, if the Justice For Renters Act is approved by voters this fall, this could be your new reality. The struggles described here will spread to every jurisdiction in California.
How the Initiative Threatens Your Investment
The proposition authorizes your city and county politicians to immediately enact ordinances that:
- Prevent owners from charging market rents to new tenants upon vacancy (“vacancy decontrol”). Yes, if this passes the government or a rent board, not you, will set rents.
- Allow rent control of single-family homes and condominiums.
- Expand local government bureaucratic hurdles thereby increasing your operating costs.
The proposition is guaranteed to:
- Decrease your rental income.
- Decrease the resale value of your property. In New York, a similar proposal reduced property values by 30 to 40 percent.[i] [ii]
- Create a patchwork of local ordinances that complicate compliance and increase your expenses.
Thank you for your time and support!
Sincerely,
Alan Pentico
Executive Director
Click here learn more about the Southern California Housing Association
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