Posted on 09/11/2019 6:28:05 PM PDT by karpov
California lawmakers approved a statewide rent cap on Wednesday covering millions of tenants, the biggest step yet in a surge of initiatives to address an affordable-housing crunch nationwide.
The bill limits annual rent increases to 5 percent after inflation and offers new barriers to eviction, providing a bit of housing security in a state with the nation’s highest housing prices and a swelling homeless population.
Gov. Gavin Newsom, a Democrat who has made tenant protection a priority in his first year in office, led negotiations to strengthen the legislation. He has said he would sign the bill, approved as part of a flurry of activity in the final week of the legislative session.
The measure, affecting an estimated eight million residents of rental homes and apartments, was heavily pushed by tenants’ groups. In an indication of how dire housing problems have become, it also garnered the support of the California Business Roundtable, representing leading employers, and was unopposed by the state’s biggest landlords’ group.
That dynamic reflected a momentous political swing. For a quarter-century, California law has sharply curbed the ability of localities to impose rent control. Now, the state itself has taken that step.
“The housing crisis is reaching every corner of America, where you’re seeing high home prices, high rents, evictions and homelessness that we’re all struggling to grapple with,” said Assemblyman David Chiu, a San Francisco Democrat who was the bill’s author. “Protecting tenants is a critical and obvious component of any strategy to address this.”
A greater share of households nationwide are renting than at any point in a half-century. But only four states — California, Maryland, New Jersey and New York — have localities with some type of rent control, along with the District of Columbia.
(Excerpt) Read more at nytimes.com ...
Item #7: All wages and prices are frozen.
So let’s see. The state is limiting the return on investment people can earn from their rental property and expects that this will ease a housing shortage?
Socialist economics 101.
One could ALMOST believe that they are using Atlas Shrugged as a blueprint for destruction of their society, couldn’t one?
They do this in socialist nations!!! The left wing liberals are freakin EVILLLLLLLLLLL!!!!
Total idiocy. Rent controls have always reduced the number of housing units as it discourages new housing from being built. Owners of more desirable rental housing will simply convert those units to condos.
“...to illegals and homeless, rent free.”
Actually, the various sanctuary state agencies & nonprofits which are busying themselves with ferrying in the illegals, pay out lucrative rental grants to anyone willing to host “immigrants.” You can get $1000 a month for a bed
The homeless, OTOH, aren’t as lucky. The most affordable housing is now a bunk bed in a “hostel” designated for travelers on a budget.
To get in, you must produce travel documents & ID from elsewhere. No locals allowed for stays of a few days.
For rent by the month in hostels that do allow locals— high credit score required.
This will make real estate developers rush to build new apartment complexes.</s>
Combine this with the homeless encampments and -TA DA - instant third world favelas (or whatever favela is in Spanish)!
“Oh my! Rental property crash coming?”
Well I’m 9 days from closing on a Cali. rental property that is in my Mom’s estate. Dear old Mom for the last 35 years was always $300 a month under the prevailing rate. She left over 100k on the table only to have the last long term Tenants trash the place. I just pray the new owners are actually moving in and that it is not an Investment property, otherwise I worry about closing the deal, Thanks dip$hit Gov. Newsom. I wonder if this will make it to the Supreme Court since it is a Statewide non ballet initiative??
The 8% is the CA government just getting their foot in the door, setting the precedent of government controlling rents.
Stricker limits will follow.
Total idiocy. Rent controls have always reduced the number of housing units as it discourages new housing from being built. Owners of more desirable rental housing will simply convert those units to condos.
cal, including LA County is trying to pass code revisions which would allow multi-family (4 or more inits) in single residential neighborhoods. They want to crowd more people into public transit areas near stations.
Sadly, the ridership is down because the homeless crap and pee and sleep on the buses and light rail. Some trains and bruises experience regular psychotic episodes amongst the homeless riders.
“This will make real estate developers rush to build new apartment complexes.</s>”
Counties / Cities make it mandatory to build low income if they want to also build single family. Maybe the developers will just move out of State. Typical that the Cali. Socialist can’t anticipate the next chess move in advance.
People are just converting them to Airbnbs, especially in the cities.
Rent control has always been a ticket to riches for fraudsters. Rent at the controlled price, sublet at market rate. Lather, rinse, repeat.
Some people do this with 10-20 apartments.
The roommate scam is easy. Dont tell your roommate it’s rent controlled & live for free.
Maybe I should sell my house and go rent one?
In NYC, many of the newer high-rise apartment buildings are a certain percentage low-rent units.
They aren’t as tricked out as the regular rent controlled units, within the same building and are typically on the lower floors.
With an elevator bank of 3 - 4 elevators, only one is typically running. Makes for VERY long waits, with babies, pets who need to ‘go’, people trying to get to work, etc.
CA: We Value ILLEGALS Over Homeless Vets/Citizens.
Slo-mo train wreck onto an orphanage/explosives factory..
“That’s not much control. If inflation is 3%, then the rent can go up 8% per year.”
So, if I renovate a termite infested slum house with no roof that was renting for $100 a month, how much rent can I now get after spending $100k in repairs??
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