September, 2014

 

LA Rent: Has Rent Control Been Successful in 

Los Angeles?

 

KPCC 89.3 FM: 

Report by Ben Bergman 

September 12, 2014

"There is a shortage of decent, safe and sanitary housing in the City of Los Angeles resulting in a critically low vacancy factor," begins Los Angeles' Rent Stabilization Ordinance, which was enacted in 1978. "This situation has had a detrimental effect on substantial numbers of renters in the City, especially creating hardships on senior citizens, persons on fixed incomes and low and moderate income households."

Most renters are cost-burdened
 

Larry Gross, Executive Director of the tenants rights group, The Coalition for Economic Survival says, "Most renters in L.A. are working people, low-income or middle class people trying to get by and rent control laws provide them with some stability. 62-percent of renters in L.A. are paying unaffordable rents as it is."
 

More than just capping rent increases, Gross says rent control gives tenants some of the security they would get if they were a homeowner because they know they can't be kicked out on a landlord's whim.
 

"It levels the playing field for tenants," said Gross. "It says you can't evict somebody just because you don't like them."
 

Gross says a more typical example of someone who has benefited from rent control is

CES Tenant Leader Wendell Jones was facing eviction from his West Hollywood apartment, but fought the eviction and won under a rent control statue. He has lived in this one-bedroom apartment for 20 years. Photo: BENJAMIN BRAYFIELD/KPCC

62 year-old Wendell Jones, who took us up several flights of stairs to visit his West Hollywood apartment on a recent afternoon.
 

"That's my exercise for the day," said Jones, panting. "I have chronic fatigue syndrome."

 

Jones has lived in his studio for about two decades and it's not hard to understand why: his rent is $700 a month, thanks to rent control.

 

West Hollywood is known as  "the city built on rent control." It incorporated in 1984 largely for that purpose after a measure to win countywide rent control failed.

 

In area where studios easily go for twice what he's paying, Jones' sensed his landlord was eager to get him out so his apartment would reset to the market rate. Sure enough, when Jones got sick and fell slightly behind on his rent a couple years ago, he opened the mail and received a three-day eviction notice.

 

With help from the tenants rights' group, the Coalition for Economic Survival, Jones fought back. They discovered Jones' landlord hadn't been paying back the interest on the security deposit, as is required in West Hollywood, and Jones got to stay.

 

"Now things are relatively friendly with my landlord because they know I know lawyers, so they can't just come after me," Jones said.

 

There are plenty of people who would think it's unfair Jones pays $700 a month to live in West Hollywood - unfair to his landlord who could be making so much more and unfair to tenants at the mercy of market rates. But Jones doesn't think so. He says whether you support rent control or not all depends on what kind of city you want to live in.

 

"People like me who have things to share with the community, we'll all be driven out if rent control goes," said Jones. "None of us will be here. But if you think that people should be able to live their lives, landlords should be able to make decent profits, and we should all live together, we should all have rent control."

 

Jones has little doubt where he would be without rent control.

 

"I'd be homeless," he said

 

Local rent control laws watered down by the state

 

Gross helped campaign to bring rent control to West Hollywood and Los Angeles decades ago. He says as unaffordable as the rental market is now, it's still an improvement over what the market was like in 1970's, before rent control.

 

"It was a crisis situation," remembers Gross. "Speculators had found L.A., buying apartment buildings and turning them over. People were receiving three, four, and five rent increases per year."
 

Save Rent Control Sign Gross says although local rent control has helped many tenants in cities like L.A., Santa Monica, and West Hollywood, it has been consistently watered down by state laws.

 

"It could be a lot more effective," said Gross. "What rent control has done is limited rent gouging, protected tenants against unjust evictions, and preserved some of our affordable housing stock. But there's much too many loopholes in the law that allow property to escape." 
 

In 1985, the legislature passed the Ellis Act, which allowed landlords to evict tenants if they go out of business.
 

A decade later, the state enacted the Costa-Hawkins Rental Housing Act, which prohibited any unit built after 1995 from being rent controlled and allowed landlords to charge market rents after apartments are vacated. The law didn't have much impact in L.A., where new units already reset to market rates, but it had a big effect in Santa Monica.
 

"We can't control our rent because of the Costa-Hawkins decision," Santa Monica planning commissioner Sue Himmelrich said. "That really is the pressure on our housing market.
 

There's been a big uptick in so-called Ellis Act evictions in the past decade in San Francisco. Gross says these kinds of evictions are on the rise in Los Angeles.
 

"We've lost upwards of anywhere from thirteen to sixteen thousand units through landlords going out of the rental market to demolish their buildings to build new luxury condos," said Gross. "Housing will be lost and never replaced."

 


Friday, September 12, 2014

 

Los Angeles's Rent Stabilization Ordinance, aka rent control, covers 880,581 apartments in the city of Los Angeles, and fewer all the time as landlords find new ways to push out rent-controlled tenants. Under the law, landlords can only raise rents by 3 percent a year on apartments built before October 1, 1978 (it also makes it more difficult to evict tenants), and it's incredibly important in a city where the majority of residents are renters (the rate is highest in the US at 52 percent). Opponents (mostly landlords) claim rent control just drives rents up on market-rate units; supporters say the laws might be imperfect, but they genuinely help people. KPCC took a long look at the issue today and we've pulled out some of the most telling quotes, which cover the range of problems that rent control both faces and addresses:

 

Larry Gross, executive director of the Coalition for Economic Survival, on the 1970s apartment market that inspired rent control laws: "It was a crisis situation ... Speculators had found L.A., buying apartment buildings and turning them over. People were receiving three, four, and five rent increases per year."

 

Gross: "It levels the playing field for tenants ... It says you can't evict somebody just because you don't like them."

 

Paul Habibi, UCLA finance and real estate teacher who owns "thousands of apartments, just under half of which are rent-controlled," on making improvements to rent-controlled units: "For the most part, market forces dictate that those apartments that are market-rate are going to get investment dollars."

 

Wendell Jones, who lives in a rent-controlled unit in West Hollywood: "People like me who have things to share with the community, we'll all be driven out if rent control goes ... None of us will be here."

 

Habibi on lack of income restrictions in the current laws: "You could have an attorney making a quarter of a million dollars living in a rent stabilized property ... Meanwhile, someone who makes only a fraction of that is living in a market rate building."

 

Santa Monica Planning Commissioner Sue Himmelrich on California's Costa-Hawkins Rental Housing Act, which outlawed rent control on units built after 1995: "We can't control our rent because of the Costa-Hawkins decision ... That really is the pressure on our housing market."

 

Gross on California's Ellis Act, which allows landlords to evict tenants if they plan to go condo or otherwise repurpose the property: "We've lost upwards of anywhere from thirteen to sixteen thousand units through landlords going out of the rental market to demolish their buildings to build new luxury condos ... Housing will be lost and never replaced."

 

Daniel Flaming, president of the Economic Roundtable, on how it works back east: "New York puts a ceiling, unlike L.A. Some units in New York are at remarkably affordable prices. That's rare in L.A."

 

The Economic Roundtable's 2008 report on LA rent control: "It is a partial answer because the RSO does not result in affordable rents for most tenants; rather it slows the rate of rent increases for tenants who remain in place during periods of rapid housing inflation."

 

And that report again with the last word: "The purpose of the RSO is to protect tenants from excessive rent increases, while allowing owners a reasonable return on their investments ... This balance is difficult to achieve in a rental market with both long-term decline in renter incomes and inflation in housing prices."


Support the Work of CES
Make a Year End Donation to CES, NOW!
Show you support for the work of CES by making a Tax Deductible Donation Now!

The economic justice victories that CES has won over the years such as rent control, creating the city of West Hollywood and winning numerous laws to combat slum housing, secure tenants' rights and preserve affordable housing has only been possible with the generous financial support from people like you. This is CES' 41st Anniversary year. Help make 2014 another year of victories by donating now. 
 

  Find Out Your About Your Renters' Rights
 
Tenants are welcome to come to CES' Tenants' Rights Clinic held every Wednesday evening at 7 pm and Saturday morning at 10 am in the Senior Center located in the Community Building in Plummer Park, 7377 Santa Monica Bl, West Hollywood (just west of La Brea, between Vista St. and Fuller St. at Martel Ave. ).

Tenants are assisted on a one-to-one basis by one of our experienced and knowledgeable volunteer attorneys and counselors. No appointment needed. First come, first serve.

Find Out More Details Here

 
Check Out and Subscribe to CES' Blog
Blog OT Logo

Get up to the minute news, analysis, information on events and reports on actions by subscribing to "Organizing Times," a Blog related to CES activities and more......  

 

  Click Here

 

 
CES is on Facebook
Shaking Out Tenants
Check out the new CES Facebook page. Take a moment to go to our page and click 'JOIN." 
You'll get up to the minute news and information.

 
Follow CES on Twitter
Follow CES on Twitter.

Click Here



Follow CES Exec Dir Larry Gross on Twitter
 
 

For information on broader progressive issues, news and activities.

 

Click Here  


Shaking Out Tenants
Coalition for Economic Survival (CES)
514 Shatto Place, Suite 270
Los Angeles, California 90020
Ph: (213) 252-4411
Email: [email protected]
Web Siwww.CESinAction.org
Join Our Mailing List

Support CES' Work by Joining or Making a Donation
Donate Now


Support CES' Work When You Shop on Amazon.Com

Do your Amazon shopping using the link provided below, and Support the Work of the Coalition for Economic Survival. Amazon.com will make a .5% charitable contribution when you use this link to do your Amazon shopping! 



    

Support CES' Work When You Shop for Your Groceries

Sign Up for Ralphs/Food-4-Less  Community Contribution Program:

RalphsFood4Less

Supporting CES' work couldn't be easier: through the Ralphs/Food-4-Less Community Contribution Program, each time you use your Ralphs or Food-4-Less Rewards Card, a portion of your total purchase is donated to support CES' work. This donation does not reduce your individual rewards earning. Registering is quick, easy, and free.

 

Contact CES at (213) 252-4411 or [email protected] and we will explain how to register to support CES' work while you shop.