Last month we let you know about Assembly Bill 1506. If passed, this bill would repeal the Costa-Hawkins Rental Housing Act. Costa-Hawkins exempts single-family homes, condos, and new construction from rent control and establishes vacancy decontrol. On Thursday, January 11, 2018 at 9 AM the State Assembly Housing and Community Development Committee will hold a legislative hearing regarding AB 1506 in Sacramento. This is not the time to shy away. The passing of AB 1506 will have an adverse affect on property owners and tenants alike just as rent control and stabilization policies have. The right of a landlord to set the initial rent on a vacant unit is of utmost importance. It is one of the few rights you have left. Do not let them take it away. Let your voice be heard!
Contact Committee Chair David Chiu before the hearing saying "NO on 1506" and express how this bill would adversely affect you and your tenants.
Assembly District 17 Assembly Member David Chiu
(co-sponsor of AB 1506)
Capitol Office: (916) 319-2017
SF Office: (415) 557-3013
Fried & Williams LLP is currently researching rent control's adverse effect on the housing economy and working on alternative solutions to rent control and stabilization policies. We hope to aid in the fight to save Costa-Hawkins by citing how the implementation of rent control laws has caused economic stagnation, and even gentrification, as was recently suggested in a Stanford study on housing in San Francisco (learn more about this study here).
We stand behind organizations such as the East Bay Rental Housing Association, the San Francisco Apartment Association, the California Apartment Association, and others in their efforts to save Costa-Hawkins. Between AB 1506, red-tape initiatives that stop development, the wildfires, and the increased tax rates, housing shortages will only get worse. We encourage you all to support your local rental housing associations in their efforts to combat rent control and create more housing.
© 2017 by Fried & Williams LLP. All Rights Reserved. The information contained in this article is general in nature. For advice on any particular matter, please consult with our attorneys because the facts of your situation may be unique and the law changes from time to time.