ORANGE COUNTY LEGISLATIVE WATCH B y C hip A hlswede , V ice P resident of E xternal A ffairs
Your Buildings Have 12 Months Left to Live
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es, the headline seems hyperbolic, but consider this—on the November 2024 ballot we are going to see: • 5% cap on rent increases—eliminating the CPI exemption altogether. • 50% threshold to pass taxes and bonds. • Rent Control on Single Family Homes. • At least 12 other ballot initiatives. One year from now all three of these issues will crowd the ballot along with elections for: • President • US Senate • House of Representative Races • State, County, and local offices • County and local ballot initiatives • School Boards • Special Districts • America’s Got Talent Finalists • The Pepsi Challenge And, probably, some additional contests to decide that I have forgotten. In other words, this is going to be a very long election season, followed by a very long ballot, which leaves your properties with about 12 months to live if things go the wrong way.
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Apartment News
The Ask
I am going to cut to the chase—protecting your properties from several of these initiatives is our main goal over the next 12 months—and it is going to be expensive. Defeating the Justice for Renters Initiative (AKA Weinstein 3.0) to limit rent increases to 5% and extend rent control to all residential property will cost a collective $90 million according to the California Business Round Table. $90 Million. For the next 12 months, contribute $1 per unit each month—and we will get there. AAOC members own and operate more than 100,000 rental units in Orange and Riverside Counties. $1 per unit per month amounts to $14 million of that $90 million if every rental property owner and operator participates. For the third and fourth largest counties in California by population, that should be our mission. We are asking you right here—right now—to commit to contributing $1 per unit, per month, to save your rental property and our industry.
The Landscape
Ballot initiatives, by nature, are long, confusing and at the whim of the voters. Looking ahead to 2024, we are expecting more of the same. So far, what we know is that ballot initiatives will be a heavy load—
www.aaoc.com
November 2023
• The Governor is pushing all ballot initiatives off the March 2024 primary ballot to the November general election ballot to garner more support for his mental health initiative. • The California Secretary of State reports there are: – 5 Initiatives Qualified – 7 Initiatives Eligible to be included (meaning they have qualified but supporters may push them to another—ideally less crowded—ballot in a later year) – 16 Initiatives are out for circulation. – 12 Initiatives are pending clearance from the Secretary of State to gather signatures. The November 2024 General Election ballot currently looks like it could have up to 40 ballot questions—and more may be coming— Watch — continued on page 10
Do you know… AAOC Membership Counselors are on hand to give members general guidance to help with day to day operations of your property?
