Prop 33 - Rent Control

Background counties cannot do their own rent control stuff uh specifically for single family homes homes that are first occupied after February 1995 and condos um and yeah it does say February 1995 But as time goes on this will cover more and more units so essentially as time goes on rank local rank control is more and more applicable to most units in cities uh rent control works by uh um limiting the amount of rent that uh your tenant can your landlord can increase your rent every year um however it doesn't apply if you're a brand new tenant moving into a new unit okay so also there is Statewide rent control which is 5% plus inflation for and it's kept at 10% um this is thanks to David Chu who's actually our current City attorney whoa back at the state level okay um so this is rro has been on the ballot for a long time right so it failed in 2018 and 2020 and now it's back um it's still relevant question uh fiscal notes on this from the analyst say that there's going to be a reduction in local property tax because it will reduce the value of these commercial properties because you can't if you can't increase rent however much you want then your profits are going to be kept it's going to be it can only grow very slowly so that's why the the General market is going to be take a hit it makes the market more regulated less sexy to investors uh less sexy to developers uh and again this is only about local rank control whether to uh keep it as it is which local governments cannot enact local rent control but if it passes then they can and then each little city each County can have its own policies about rent control so in one city you might be able to um raise rents however much you want each between each year but next to the over you might be only be able to raise it 10% 20% what have you okay um so this is uh unfortunately another economic question about the effects of rent control on the housing market whether you think it'll be a good thing or a bad thing it's a direct tool to keep tenants in their buildings because then the people can't raise their rents by however they want so um it prevents displacement and it it keeps people in their uh units however on the other side economists say that uh it messes up the market right because if you're in a rent control unit you're not inclined to move across town or whatever because if you move your new landlord can charge you whatever they want if you stay your Lo your your landlord can only increase it by a certain amount so you're inclined to stay and why is it bad for the market it's bad for the market because the prices because that unit that you're in is not going to be um it's just gone from the market right so the market is smaller it's shrunk right so the market for apartments are smaller and that makes it um more susceptable to supply and demand okay also if you're a a student just graduated if you're trying to move out of your house you're trying to move to a new city to start a career um that smaller Market means there's probably higher rents for you so it's tougher for you okay um also if there's uh some really strict rent control policies in this city and I'm a developer I want to build housing I probably don't want to go to that City where I won't make us0 so I'll probably go to the next city or so therefore there's going to be less development going on in your town maybe you like that maybe you don't but um that's going to be an effect of having R control okay any uh clarifying questions on this policy yes um does Costa Hawkins also prevent rank control on apartments or apartments are exempt from Costa Hawkins it applies to Apartments first first occupied after 1995 oh oh okay so just all units built after built after 95 yes it might be very more specific things in the code but uh as far as uh I know right now that's what we're going to go off of umol and then like and then there's also State wide bre control 10% so just yeah all right yes oh no all right I was just cheering to the song Arguments in Favor and Against ending like all right let's go four we got got why am I units have like good pictures and like they're legit they're like legitimate take it away but crazy lot people off and a lot of those people are teachers oh yeah why would you not make sure rent is cheap enough for our teachers to afford to live in the city so they don't have to commute so you have more teachers and not just teachers all like like civil servant kind of people who work minimum wage cuz those are city jobs and whatever in other local so I want you want to cap or not cap make it so rental laws are more feasible for these people who are can't afford to purchase homes in those areas right so I would say what what am I talking help the teachers yeah and not just the teachers it's all these people who can only afford to rent right and in the long run to say like they're trying to increase minimum wage I'm trying to bring this all around hard right so like yeah words I hate I hate where's the team where's team you did it you help the last one um anything else from the for side yeah I think I think we're just like trying to the point that we're trying to touch on is like we don't want people who are already spending like a large portion of their paycheck towards rent we don't want them to like go through even more like we don't have to make it any harder for them right we have to like have some empathy for like you know our community and um you know yeah have empathy help the teachers for the people who the people who can't afford to live in Rich area okay let's go to against why is Rec bad oh my God strong at the gate you want to take it so sorry for your law rank control is the devil uh no so it undermines Statewide rank control laws like we already have those in the books reduces home values it's no protections for seniors veterans or the disabled uh reduces landlord profits and many of those are tied to pensions you know blah blah blah uh local governments they just can't be trusted to manage rent control properly I mean like what if a local government is like oh you need to have like negative increases well you going to like artificially decrease rents that doesn't make any sense um it decreases housing Supply in the short term by uh people who are in rank controlled units already don't are disincentivized to move out of them so you know you don't get as much churn and then people get like sort of live their entire lives and single apartment complex and it's just going of gross um it reduces the incentives to build more housing uh yes in my backyard people you know they're opposed to this because you know this is not the real way to go this is kind of a Band-Aid measure a Band-Aid measure that sort of like makes it harder to build more right and really building out and growing the housing stock is really you know what that's the name of the game you know not not fut say with the current housing stock that's not the name of the game is the name of the game is making the housing stock better uh and also this this proposition is fed twice before so you know what can I say I feel like California doesn't want it so why even try it anything else to add against team anything else to add R control sex sorry for your l so I think that's all say all Discussion right discussion so I mean how people feel on this like it's a lot of uh what is your decision hinge on right who's on the fence like who wants to who has questions well when was saying like oh this is going to benefit and then in my mind I'm like are we sure it's going to benefit how like are we sure that local rank control is better than state rank control and is rank control even like beneficial overall general in general that's my question is well yes if you ask the folks who are in a unit and they don't have a lot of income is helps them a lot so for those folks yeah it helps them a lot I also think that if we think about housing as like a for profit thing right like we like give these landlords um just control to like raise the rent however however they want then they're more incentivized to like take that money and like buy another house and do the same thing and that in turn like lowers the amount of houses that are accessible especially to like the lower class class and stuff like that right like they're they're just going to like buy more houses and you know there's they're going to be landlords for business right yeah so you're saying we want to discourage RS as a well I mean if we're talking about like um we're talking about like housing for people right how how how how accessible it is for people right and so yeah I I guess I am talking about like discouraging it as like through a business yeah I me that's a fair point um yeah well let's say landlord they rais it 10% that's that's that's a big cut right no one's salaries increase in 10% every year but they're still allowed to increase your rent 10% a year so it's either way yeah maybe you do need stricter rent control and you would think your local government the people you vote for would think of you the people that live in the local area right if they make certain laws whatever the rental law would be in the area would match with up what everyone would voted for like the the policies and like the political side of whatever that the person the local government person they voted for I don't know dud I just think that like landlords and like de developers and real estate inv they have a lot of money to throw around right and they're probably like in our in our offices like lobbying for their cause right so it's not I guess it's not like the people that we elect into office aren't necessarily always look that for us I would hope so in San Francisco I mean probably like to Will's point I they could probably pass something that says there's negative rol and and that's absurd honestly like I don't know I I live my entire life I live my entire life in a rent controlled unit like my my family like we've been in a rent controlled apartment yeah like my entire life and so was that a benefit or a negative maybe it's a negative I don't know so sounds like it's it kept me around here that negative so it kept you in a nice neighborhood and had let you right I know well that's what I'm not on I'm not on likee the the anti-id this is this is the real so so in a real has not been murdered so in a real case you lived in a red control apartment was able to stay in a nice neighborhood had a nice education went to a nice College nice a nice College I don't know to was yeah now you're in a nice job right but now are you able to afford to live in that same neighborhood because you're out of that rent control place now oh on my own kind not really I'm on a bubble I don't know no it's true but yeah said it's such a bubble it's so hard to like well I mean like so for you who grew up in a rent controlled um area mhm um your family was able to pay for um other areas of life without having to worry about rent as much right exactly so that is like a positive for yeah people who stability for rent control I'm personally against it really yeah okay you have think you think about Statewide or you think about that about the bigger picture yeah what do you think serous because what are the people people need to you're a spokesperson for the government right what do you have to say the most efficient way to get housing built right now is to have the parked do its thing development make it easy for developers to build um and and let the market do its thing that's that's the uh that's that argument fors it's kind of like this is a weird I think but like it's kind of like Elon Musk right he left California okay not developing here anymore and moved to the place that is developing has less restrictions so if we had more restrictions here people would think not to develop here and leave and then housing crisis would be just as worse yeah so you're saying the market will take care of itself that's that's the most effective mechanism we have right now you're saying saying that people like Will's family should take the hit you think should have been on the street you go for I mean nothing I should have been in like [ __ ] Daily City kicking me out of Daily City that apartment will still be rent control this doesn't this doesn't you vote Yes for this doesn't remove any rent control that existing buildings after 95 you're saying um those are the ones that can be control or the the ones that the other way around can be locally controlled yeah so yeah I mean well this we're not we're not uh we're not discussing whether or not rent control is good or not because this bill is just do we want state or local government for if you vote Yes for this it will allow local governments to enact their own rent control policies and there are some places who are very like conservative very conservative about like who can be in the area right yeah that doesn't really play here because all all they would do was syst do is enact stricter or less strict rent control policies they can't use those policies to like Target different groups but they can word it in a way that it would get challenged by the ACLU it would get struck down there's like civil rights legislation that would prevent that Target discrimination like I'm just say like it's All or Nothing is what I'm saying the yeah it talks about um what this will do is probably allow more local governments to enact stricter rent control policies what would those be those would be like you can't rent more than 2% every year but that's at the discretion of the local government the local government decides that like we we don't want anything to do with rent control like it's fine the way it is they can do that as well yeah yeah absolutely okay yeah but what is likely to happen probably in the liberal big cities are going to be stricter rent control polies can't increase can't increase why would I run out my place I'll just turn into an Airbnb yeah well they have rules about thatb gets more but that's that's Henry's point at first where it's like oh well okay the Market's going to be worse for landlords maybe that's a good thing right maybe we don't want landlords to go go crazy and do whatever they want um well do we think that's a contributing factor to the housing crisis right landlords buying up land and you know turning into rentals yeah absolutely but uh so what what other things can we do about this housing prices that's not that may related to control right public housing public housing sure it's got such a bad W in this now are people down to pay a lot more taxes to set up a public public housing agency to start building hug Apartments I'm down for that would tax the [ __ ] out of these landlords man how dare you yeah but I don't know like can the government do that right now oh I don't know if they can how they can I don't know you guys going to organize and get everyone on board to get these policies passed get these politicians in office that will let that happen what is the most feasible and way that we have to make a dent in the problem that's kind of the where we're at right now well I feel like kind of adjacent to your point is like the idea that if you build something new in the city in this city there have to be a certain amount of affordable units BMR below market rate is that not kind of if you squint is that not kind of like a form of run control in and of itself but it's not call R control so therefore oh it doesn't apply to cost of Hawkins but it's still like below market rate and it's like what's going on there like oh it feels like a loophole but if you look at it objectively it's the same damn thing and we're okay with it and in fact it's required and is an impediment kind of to certain projects going going forward who's owning you know those buildings that they're putting you the same people that would be affected by these rent control policies you know what I mean like I'm just saying like I feel like BMR units and rent control are they not two sides of the same coin and they're kind of like doing the same thing effectively at the end of the day like I don't know how BMR is like done I guess is what I'm trying to say yeah I if I build a new tower right now yeah maybe like 20% of it has to be affordable okay that's the 20% I'm not always to worri about another way saying that is those 20% are rent controlled in a sense yeah in a sense yes so we kind of allow it already so like yeah you know what I mean it's a different mechanism um yeah it's a different I feel like what this whole thing of like no R control yes we're already kind of doing it like regardless um no but we're not for for the other 80% of yeah oh I guess okay yeah those I can charge 5,000 a month and when they move out or no any it's not yeah I can charge up to 10% according to the state yeah yeah yeah so and that's just on residential rental properties not a retail retail or commercial rental properties are residential units yeah only okay so so but the the sing point is as a developer rent control that messes with 100% of my units yeah that's a huge no no I'm GNA go down I'm gonna go across the border South City and build over there instead of going to San Francisco what has like 5% only that's affordable I would take rather than 20 units whatever affordable whatever I don't care about those I get my money from the 80% right and therefore I will develop in San Francisco Either Way San Francisco still has to develop what we talking about earlier yeah where they have to develop a certain amount of housing either way to match up to needs yes but the city can only do so much like it can't build units itself it has to like ask people to come please build in San Francisco please and that's I then they will make rental those laws less strict then wouldn't it well yeah but would you support a politician that is like oh letel do whatever they want yeah so what would the people allow I just don't know why like I know why but I don't know why we can't like build our own like public housing or whatever we can't be very expensive Comm like who's going to pay the taxes the rich people right if our bathroom cost whatever like a toilet cost whatever $700,000 that's true expensive so we're against this I don't know I'm on I'm I'm on the I still don't get like okay so you said we are debating rank control or not R control but I'm like in my mind I'm like this is state rank control or city rank control it's still rent control there is rent control in the state yeah so what what are you right now uh right now the state says right now the state sets the rules on rent control okay should we allow the city to do that yeah or just keep it at state level I trust we should allow do we trust our city more or the state local government so what will probably happen is local governments will enact stricted rent control in the places that need it right we don't know we don't know blanket thing legisl would be for the whole city of s Francisco or yeah it'll be it'll be by city was this proposition made before when was this only put up twice only so far might have been more it might have been more has happened before yeah and I think it's failed every time every time so you're against control will you say yes to this because no if you're against R control you would you would vote no on this and let the state continue to say what it sounds like there's not a scenario where this the local government would like be done with rain control like it's only going to be more intense is that like the Assumption like Napa or like somewhere like you know Northern California they're probably be less strict because yeah they don't really need it you know what I mean like local governments so wouldn't you be like if you're against control what do you want local because the status quo is against generally um so those would be those would be I'm I'm imagining that situation is uh like Rich suburbs they're happy with yeah right they're not allowed to be happy because the feral the state government happiness control because like I told you they have to build a certain number of units even if they don't want to they have to so I mean they still have to build a certain number of units but in terms of like rent control if they're happy with if if the renters there are happy you know what I mean then the local government is not inclined to do anything about it correct so there's still the the real possibility of like although this is passing right local local governments can say we don't want to tou yeah everything's okay that's all yes yeah and that'll be fine for so why don't we just pass it because because what will likely happen in the liberal cities is that there will be stric grand control policies so we don't want the against doesn't want to let that happen at all so they're against it this proves a lot of us are centrists I mean most people are most people are C no I just feel like this is a weird sort of instrument that affects their housing stock and rent prices in weird ways that are contradictory and we just don't know how it would all shake out because I do know like yeah people who are in these units these rank control units like they tend to stay in the same unit and it gets all crony and the the landlord themselves are like they're not incentivized to to do the maintenance on that on that apartment or whatever you know and and it just sort of like falls apart it's like full of moment what other What other state has local rent control great question in your own time that's a good question yeah probably like Washington probably New York for sure I think New York whole state whole state might be also under rent control what like local though oh like different in different loc like if it yeah like yeah I wouldn't be surprised um I'm talking about now yeah so all right final thoughts final thoughts all right