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Sac'to Ass'y Committees Advance Two Bills That Would Mean Big Changes In Landlord/Tenant Relationships: Capping Maximum Annual Rent Increase And Requiring "Just Cause" For Evictions

LB Councilwoman Gonzalez, now seeking state Senate seat, could cast votes on both if elected in just weeks


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(May 1, 2019, 8:45 a.m.) -- Sacramento Assembly Committees have advanced two bills that could significantly impact landlords and tenants statewide.

Yesterday (April 30), the Assembly Judiciary Committee voted 7-3-2 to advance AB 1481 that would prevent landlords from evicting tenants unless for reasons deemed "just cause" (which a tenant could then legally challenge.) (Ayes: Chau, Chiu, Gonzalez, Holden, Kalra, Reyes, Mark Stone; Noes: Gallagher, Kiley, Obernolte; No Votes Recorded: Maienschein, Petrie-Norri) For details on what the bill would do, see the Assembly Committee's legislative analysis at this link.

A week earlier (April 23), the Assembly Housing Committee voted 6-1-1 to advance AB 1482 that would cap annual rent increases, forbidding rent increases of more than 5% annually plus a cost of living increase metric (total not to exceed 10%) .(Ayes: Chiu, Gabriel, Gloria, Limón, Maienschein, Quirk-Silva; Noes: Kiley; No Vote Recorded: Diep) For details on what the bill would do, see the Assembly Committee's legislative analysis at this link.

If approved by the full Assembly and the state Senate and not vetoed by Gov. Gavin Newsom, the bills would do statewide what LB's Mayor and City Council have declined to do locally. LB Councilwoman Lena Gonzalez is currently in a runoff for a state Senate seat where she could cast votes on both bills if elected June 4 (with vote by mail votes flying starting May 6.)

Both bills now proceed to the Assembly Appropriations Committee, one step away from a floor vote in the full Assembly (where Dems hold a super-majority). Following the April 23 Assembly committee vote on AB 1482 (rent cap), Gov. Gavin Newsom issued the following statement:

[Gov. Newsom statement] "The California Dream is in peril if our state doesn't act to address the housing affordability crisis. The cost of housing -- both for homeowners and renters -- is the defining quality-of-life concern for people across this state. Housing costs and rising rents threaten to erode our state's long-term prosperity. Families shouldn't be forced to live hours from where they work. Vulnerable residents -- seniors, families with small children and people on a fixed income -- shouldn't have to live in constant fear of eviction. And people across this state shouldn't be forced to spend their whole paycheck to keep a roof overhead. But that's increasingly the case throughout California. I am grateful that members of the Assembly voted today to continue moving forward on one piece of the housing affordability solution -- creating a renter protection package. I look forward to continuing this important conversation as proposals move through the legislative process.

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The Governor's support for a "package" of housing-related bills is consistent with views expressed by several Senate Dems at an April 24 state Senate Governance and Finance Committee hearing that advanced SB 50 (state preemption of aspects of locally enacted single family housing zoning) by state Senator Scott Wiener (D, SF).

For the upcoming May 7 LB City Council meeting, two LB Councilmembers -- Al Austin and Stacy Mungo -- have agendized an item to oppose SB 50 (LBREPORT.com coverage here.) SB 50's author, Senator Wiener, has endorsed Councilwoman Lena Gonzalez for a LB-southeast L.A. county state Senate seat (runoff election June 4 with vote-by-mail ballots flying starting May 6.) Gonzalez's state Senate bid has been endorsed by Mayor Garcia and Councilmembers Pearce, Price, Mungo, Uranga and Richardson.)

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On April 2, Councilwoman Gonzalez voted with a Council majority (6-3, Price, Supernaw, Mungo dissenting) to direct the City Attorney to prepare a "tenant relocation ordinance" requiring landlords to pay two months rent (could range from roughly $2,700 to $4.500) to a tenant who chooses to leave rather than a pay rent increase beyond a City Hall-specified amount. LB landlords said the "tenant relocation ordinance" would amount to controlling rents, which city management denied [effectively letting Mayor Garcia and LB Councilmembers remain consistent with their previously voiced opposition to rent control.]

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Shortly before casting her "yes" vote, Councilwoman Gonzalez stated:

...For me particularly this has been a very tough issue for me as a Councilmember in a downtown that has expanded and grown and has really displaced so many of my residents. So many of my residents it makes me not sleep at night. I will tell you that. It's very difficult...

[After colloquy with Assistant City Manager Modica confirming that the proposed ordinance doesn't limit rent increases] ...I just want to make sure because there are a lot of landlords that said they were keeping their rent very low. Then guess what? Then this ordinance doesn't apply to you. I'm glad. I'm glad you're keeping them low; This does not apply to you whatsoever...

So again, just to be clear: the City Council's never engaged in a rent control or just-cause [eviction] policy. We've never engaged in that, and that's even despite the multiple resident and economic pressures, and rightfully so by our residents. We've never engaged in those discussions or policies.

We've actually engaged in land use discussions that have aligned for neighborhood character when we wanted to and should have created a little bit more affordable housing. We've also been chastised as a Council in some regards for garnering funds for an annual homeless shelter. And even with all of that, to ensure that we have rooves over people's heads, to ensure that we were pushing when it came to affordable housing, people in our districts even now, and specifically in my district where 80% are renters are being displaced now. Now. And what I ask oftentimes is when is enough enough? When do we have to turn the curve and say, you know, while some have called this tenant welfare, some have called this you know Nazi control which is really sort of out of line and inappropriate, I would call this relief and improvement of quality of life.

And with roughly 60% of our residents renting their homes, Long Beach has almost double the amount of renters compared to the nationwide average. And like I mentioned, the 1st district has 80% renters.

This has been an issue personally, professionally for me that I'm sure we're getting right, not just to offer protections as the true spirit of the item when we first brought this forward in January 2018 but also as people mentioned here to create housing stability. It's really unfortunate when people are being consistently being, constantly displaced at a very rapid pace with absolutely no relief. And especially people with seniors, people with disabilities and very low income individuals. So well I'll just say here, and I know that there's been a lot of misinformation about what this policy says and what it includes...

In November 2018, CA voters declined to approve a petition-initated measures that would have repealed the statewide Costa-Hawkins Act currently limiting new local rent control measures.

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