A draconian rental control and “just cause eviction” ballot measure was submitted to the Anaheim City Clerk yesterday for title and summary, and clearance before proponents can begin gathering signature in an attempt to qualify it for the ballot.
The measure would impose on Orange County’s largest city what looks like the most severe rent control ordinance in California. It would limit annual rate increases to 80% of the Consumer Price Index — a cost measure that doesn’t accurately measure the cost of providing rental housing.
When CPI increases by 3% or more, rent increases cannot be more than either 80% of the CPI increase or 3%, whichever amount is lower.
When CPI increases between 1% and 3%, then rent increases cannot exceed 80% of the CPI increase. So if general inflation – not the particular increases to cost factor in operating, maintaining and improving rental properties – is 1%, landlords cannot increase rent more than 0.8%.
It would cover nearly every type of rental housing, with some exceptions.
Landlord can petition an appointed Rental Board for exceptions to those limitations, and so are subject to the political whims of the politically-appointed Board.
Tenants can also petition the same Rental Board to have their rents reduced if they don’t think the landlord is doing enough in terms of maintenance, etc. This can create a spiral: the rent control limits acts as a disincentive to invest in the property, which can lead to tenants petitioning for rent reductions, which if granted creates an even more powerful disincentive to invest, etc.
It’s a long document with much to unpack. Stay tuned.
