Valley Industry and Commerce Association President Stuart Waldman has joined business leaders in Sacramento to oppose a state proposition that could pave the way for stronger rent control laws in cities throughout California.
Proposition 10, which will be on the ballot in November, would repeal the Costa-Hawkins Rental Housing Act to give local governments full control over how much landlords can charge to rent apartments or houses.
"No one wins under Prop 10," Waldman said in a statement. "Prop 10 will make it harder for renters to find affordable housing in the San Fernando Valley, traditionally an area of Los Angeles that has been an affordable place for middle class families, and impact employers looking to fill jobs. Homeowners will be forced to shift their properties to other uses like vacation rentals or condos due to the onerous uncertainty of hundreds of unelected rental boards and commissions.”
Under the current law, cities cannot enact rent control ordinances on units first occupied after Feb. 1, 1995. Landlords also have the right to raise rents to market rates once a tenant moves out.
Fifteen cities in California including Los Angeles currently have rent control laws on the books. In L.A., landlords of buildings built or occupied before Oct. 1, 1978 can only raise rents between 3 and 10 percent every 12 months, depending on the current Consumer Price Index. Last year, the allowable increase was 3 percent.
Based in Van Nuys, Valley Industry and Commerce Association is a lobbying organization that represents Valley businesses at the federal, state and local levels of government.