One of the more interesting proposals to emerge from the City Council’s rent stabilization discussion concerns a benefit for a ‘qualified subset’ of tenants who pay a low-dollar rent to pay more than 30% of household income in rent. An estimated 400 households under the program could ‘qualify’ for a cash subsidy to cushion rent increases. Councilmember Bob Wunderlich proposed it as a way of focusing rent control on “those who really need it” and Council supported it. Yet now it seems pushed to the back burner.
There is an important step in the policy process where the needs of the public are served or thwarted by hidden hands: when a staff report and draft ordinance is presented to City Council. A draft ordinance should reflect the broad intent of City Council but also nail down the policy particulars necessary to codify Council direction into law. Sometimes there are surprises. I call these Easter eggs.
City Council recently discussed the maximum allowed annual rent increase. The good news is that councilmembers agreed to keep it indexed to the annual change in consumer prices (CPI). We can call that a win! The bad news is that Council will keep it at 100% of CPI. That generates the allowed increases of 4.1% and 3.8% (for Chapter 6 and for Chapter 5 tenants respectively). That more than is necessary to provide the landlord with a ‘fair return’ under the law.
Beverly Hills City Council appears ready to exempt ‘luxury’ units from the reach of the city’s rent stabilization ordinance. Along with the exemption for duplexes this represents another major break from the past. Since 1978 the ordinance has applied to every unit in multifamily rental properties of 2-units or more. That will further change if City Council embraces a ’luxury’ unit exemption because tenants paying higher rents would be denied tenant protections. Will you be affected?
Since Beverly Hills enacted rent stabilization in 1978 the RSO ordinance has applied to multifamily rental properties of two units or more. A few rental properties escaped its reach, namely condominiums and buildings built after 1995. Now City Council appears ready to categorically exempt many more, including owner-occupied duplexes. It is a major break from precedent with real implications for hundreds of families. Here’s what a duplex exemption means for tenants.
City Council’s immediate end to no-just-cause tenancy terminations was a clear sign that the residential stability was a priority. As part of that deal, though, City Council created a new, lower standard for termination and defined a new City Hall process to terminate so-called ’disruptive’ tenants. How will it work? A two-member subcommittee of Council would hear a landlord request and render a determination. What’s more, Council appears ready to let a neighbor haul the tenant before the subcommittee for termination too.
In October Beverly Hills ended no-just-cause evictions for all residents who rent. This important change repealed the ‘original sin’ of our rent stabilization ordinance: with just 60 days notice a landlord could terminate a tenant with no reason necessary and no relocation fee payable. Beverly Hills allowed that abuse to occur for three decades (only Chapter 5 tenants were spared). Finally the current City Council heeded the call to end it by outlawing it with the adoption of an urgency ordinance.
There’s no way to sugarcoat the voters’ rejection of Proposition 10: it was a shellacking and a thumping that has set the cause of rent control in California back decades. And it has emboldened already-empowered property interests to push back on any legislative effort to repeal or amend Costa-Hawkins (which limits how every locality regulates rents in California). No matter that voters — and even the tenants it could benefit — may have not understood the measure. The voters have spoken.
Multifamily residents from Reeves to Crescent recently received a mailed notice that the Traffic & Parking Commission would consider modifying the preferential parking permit zones on the 200 and 300 blocks of Canon Drive. These blocks are in the ‘Q’ zone, which is shared with multifamily households on Reeves, Canon, Crescent and Elm. We said NO to the petition and the commissioners supported us. No change to Canon parking!
Beverly Hills City Council has endorsed Proposition 10 for the November ballot. If passed by voters, Proposition 10 would enact the Affordable Housing Act to repeal the state’s Costa-Hawkins Rental Housing law — the legislature’s ‘gift to landlords’ because it ties the hands of any city that would enact rent controls. Our city’s endorsement is a statement in support of local control and self-determination and anyone, tenant or landlord, who is concerned about local control for Beverly Hills should support Proposition 10. That’s why our City Council voted unanimously to endorse it.
Dialogue #1 kicked off with an introduction by Susan Healy Keene, Director of the Community Development Department, and then moved straight to a series of four issue presentations from city consultant, HR&A Advisors. Each was followed by followed by an open mic for public comments. Unlike last summer’s roundtable discussions, this series of dialogues is highly structured. There is a walk-through of each issue; then a bit about what the issue means to Beverly Hills tenants and landlords; and finally HR&A provides policy options to which the public is invited to respond.
Beverly Hills landlords have never liked the city’s rental unit registry. That year-old ledger of landlords, properties and tenancies is a must-have tool for the city to hold landlords accountable. That’s why landlords fought tooth and nail against it. Last fall their Apartment Association of Greater Los Angeles brought a lawsuit in Superior Court to tank it. Having failed, the AAGLA is back with a literal federal case and a local landlord as plaintiff. Let’s take a look!
City Council at the
July 24th August 7th study session will continue a long discussion about how to fix structural deficiencies in about 300 residential buildings identified as seismically-vulnerable. Affected are predominantly ‘soft-story’ wood frame buildings (where the building overhangs outside parking) that comprise nearly a quarter of the city’s entire rental housing stock. They also provide much of the city’s relatively-affordable housing. So the suggestion that the cost of seismic retrofit be pushed on to tenants should give us pause. What is euphemistically termed “cost recovery” in reality would make nearly 2,000 renting households investors in their landlord’s property. But we would hold zero equity. Is this the right approach for Beverly Hills?
City of Beverly Hills has released a raft of draft rent stabilization issue papers produced by the city’s consultant, HR&A Advisors. As we explained in a recent post, The City’s Roadmap for Rent Stabilization, the consultant’s work will shape the City Council’s policy discussion this fall. That includes key issues like the no-just-cause eviction, rent increases and relocation fees; but it also includes proposals that favor landlords like rent-banking and exemptions from the rent stabilization program. Let’s look at what the city laid on us this week.
The city has announced the return of rent stabilization facilitated dialogues beginning August 15th and wrapping up in September. These topic-focused dialogues will offer the community (tenants and landlords) and opportunity to review and comment on the findings of the city’s rent stabilization consultant. (View the materials.) We will see a return engagement by Sukhsimranjit Singh, who facilitated the earlier round last summer, wherein considerable time and energy was expended. City Council then kicked it over to a consultant for further study. Now tenants and landlords will again have their say.
Do you live in near the future Metro station at Wilshire and Reeves? If so you are likely to experience construction-related disruption from the project. But If you rent housing near the future Purple Line station, your problems are only beginning. Households near the station are quite likely to be displaced over the coming years, so I’ve asked City of Beverly Hills to consider strong-arming Metro for compensation. Read on!
Beverly Hills City Council continues its 18-month long discussion about rent stabilization starting at its August 7th meeting, where staff will present findings from the city’s consultant study for consideration. Council will also identify the next steps in the policy process, which may include yet more facilitated dialogues between tenants and landlords. Then City Council will get down to business on a final rent stabilization ordinance in September or October. This process will move very quickly come the end of the summer with the process wrapped up before the holidays. Here’s what to expect!
When Sacramento legislators won’t represent our interests, then we who rent have to do it ourselves. That’s the message sent by 447,834 voters to landlords. We signed a petition to put the Affordable Housing Act on the ballot in November. The measure would return to localities the authority to establish tenant protections that fit with local needs. That capacity was stripped by the state’s Costa-Hawkins Rental Housing Act. Now Costa Hawkins repeal is headed to the November ballot!
City of Beverly Hills announced that relocation fees will incrementally rise come July according to the percentage change in consumer prices for our region: a 4.1% increase. While this small bump-up is intended to allow the relocation fees to keep pace with rising rents, tenants will actually lose ground because even with the hike the fees lose ground relative to the cost of rental housing.
Today City of Beverly Hills announced a bump-up in the allowed annual rent increase for Chapter 6 tenants. Effective June 12th the cap was raised from 3% to 4.1% – a one-third larger allowed increase. While that may come as a surprise to some, the Municipal Code allows the allowed annual rent increase to rise with the percentage change in the Consumer Price Index (CPI-U) for the Los Angeles-Long-Beach-Anaheim region. As calculated by the Bureau of Labor Statistics that was 4.1% hence the rise in the allowed rent increase from 3% to 4.1%.