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Tue Oct 8, 2019, 04:30 PM

California governor set to sign law capping rent increases

Source: Associated Press


Adam Beam, Associated Press
Updated 1:45 pm CDT, Tuesday, October 8, 2019


SACRAMENTO, Calif. (AP) California's governor says he will sign a law on Tuesday that caps rent increases for some people over the next decade as the nation's most populous state grapples with a housing crisis.

Gov. Gavin Newsom announced Monday he will sign the bill on Tuesday in Oakland, an area where a report earlier this year documented a 43% increase in homelessness over two years.

The law would limit rent increases to 5% each year plus inflation until Jan. 1, 2030. It also bans landlords from evicting tenants for no reason, meaning they could not kick people out just to raise the rent. And while the law would not take effect until Jan. 1, it would apply to rent increases on or after March 15, 2019, to prevent landlords from raising rents just before the caps go into place.

Once signed, California would join Oregon as the only places that cap rent increases statewide. Oregon capped rents at 7% plus inflation earlier this year.

Read more: https://www.chron.com/news/us/article/California-governor-set-to-sign-law-capping-rent-14501148.php

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Reply California governor set to sign law capping rent increases (Original post)
Judi Lynn Tuesday OP
OnlinePoker Tuesday #1
beachbumbob Tuesday #2
Igel Tuesday #3
OneCrazyDiamond Tuesday #4
Yavin4 Tuesday #5
tinrobot Tuesday #6
msongs Tuesday #7
Xolodno Tuesday #8
lapfog_1 Wednesday #9

Response to Judi Lynn (Original post)

Tue Oct 8, 2019, 04:42 PM

1. Here in B.C. it's 2.6% with no inflation adjustment

It doesn't matter that the property tax increases in many municipalities are above that amount and costs for everything from building maintenance and services are above that. You're a landlord so must be rich and have to take the hit. Then the government complains there aren't enough rental properties being built.

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Response to Judi Lynn (Original post)

Tue Oct 8, 2019, 04:54 PM

2. In history of price controls where is the long term positive effects?

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Response to beachbumbob (Reply #2)

Tue Oct 8, 2019, 05:14 PM

3. First define "positive."

That's the problem--competing definitions.

Once in place, then removing them can be catastrophic because the rent increases happen before the increased rents can drive demand for new units.

Then again, a lot of the current increases are due to demand + scarcity; some scarcity is imposed by nature, some by "nurture".

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Response to Judi Lynn (Original post)

Tue Oct 8, 2019, 05:22 PM

5. CA's housing crisis could be better addressed with improved mass transportation systems

This bill will only exacerbate the problem. Rent controls favor existing tenants to the detriment of everyone else. Less housing overall will be built.

The better solution would be to invest in bigger and better mass public transportation systems. Requiring 50 million people to rely on a car for their transportation is utter madness.

Better urban planning with better transportation systems would serve the people of California better.

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Response to Judi Lynn (Original post)

Tue Oct 8, 2019, 06:18 PM

6. More incentive to tear down old buildings.

It would not apply to housing built within the last 15 years, a provision advocates hope will encourage developers to build more in a state that desperately needs it


This means old buildings will become a liability because of rent control. Much more incentive to tear down that classic old apartment building and replace it with generic stucco crap.

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Response to Judi Lynn (Original post)

Tue Oct 8, 2019, 06:22 PM

7. and when your renter does $20K damage to your house... nt

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Response to Judi Lynn (Original post)

Tue Oct 8, 2019, 07:00 PM

8. Bad idea.

While I agree a cap is necessary (25% in LA County...which I think is too high), 5% is way too low.

Nor does this solve the problem. And no, I don't think faster mass transit is the silver bullet. Going from Bakersfield to LA, no matter how fast the train, is still going to take a long damn time. And yes, there are people who make that commute.

Instead, create the incentives to go into old suburban sprawl areas, buy and rip out the houses and put up high rise apartment buildings, condo's, etc.

Make six homes for six families into 30. Give tax credits for paying rent. Require land lords to report to the credit bureaus if you pay on time, boosting your credit, etc. Make it worth while for developers and tenants. Give tax breaks for companies that let its workers telecommute a minimum number of days. Right now, everything is designed to be extremely beneficial for the homeowner...even if they do have a two hour commute.

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Response to Judi Lynn (Original post)

Wed Oct 9, 2019, 12:48 AM

9. The solution to housing, transportation, climate change

doctor, it hurts when I do THIS... doctor : OK, don't do that.

The solution is the opposite of suburban sprawl (with the freeways, traffic issues, wasted energy for transportation, etc)


build Urbmons... mile square buildings some 200 or more stories high... with all that we need INSIDE.

Much less land used, much less energy, possibly close to self sufficient, with plenty of living space.

Proposed by Robert Silverberg in the early 1970s in his novel "The World Inside"

https://en.wikipedia.org/wiki/The_World_Inside

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