Your Buildings Have 12 Months Left to Live

Yes, 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.

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—

• 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?

Cleared For Circulation

• Constitutional Requirements on Public Education (23-0001)

• Constitutional Requirements on Public Education (23-0002)

• Constitutional Requirements on Public Education (23-0003)

• Decriminalizes Psilocybin Mushrooms (23-0004)

• Death Tax Repeal (23-0005)

• Landfill Management Reform (23-0006)

• Referendum and Recall Reform (23-0007)

• Renewable Energy Acceleration (23-0008A1)

• Constitutional Requirements on Public Education (23-0009)

• Constitutional Requirements on Public Education (23-0010)

• Land Use Planning and Zoning (23-0011)

• Greenhouse Gas Reduction Goals (23-0012)

• Psychedelic Therapy Research (23-0013A1)

• Oil and Gas Well Drilling (23-0014A1)

• Government Transparency (23-0015A1)

• Election Integrity (23-0016)

Initiative Statutes & Constitutional Amendments

• Homelessness

• Split Roll

• Gaming

• ACA 9 — SPI to appointee rather than elected

• ACA 11 — Abolish the BOE

The easy answer is to tell everyone to vote “No” on everything. Which would be good if we didn’t have some potentially great protections on this ballot:

• The Taxpayer Protection Act would require an affirmative 2/3 vote in order to pass new taxes or bonds in the future.

• An initiative to eliminate Michael Weinstein’s ability to bring rent control back for a fourth try.

• Reforming the Private Attorneys General Act—and how shakedown lawsuits occur in California.

This also highlights why it is so critical for us to get our messaging out to voters to reject rent control.

What’s more, the city of Santa Ana has placed its rent control law on their local ballot for voter affirmation—and other cities may seek to do the same.

Pending Title & Summary

• Homelessness, Drug Addiction, and Theft (23-0017A1)

• School Transparency (23-0018A1)

• Female Athletic Program Restrictions (23-0019A1)

• Child Gender Modification (23-0020A1)

• Permanent Medi-Cal Rx Authorization (23-0021A1)

• Personal Finance Education (23-0022)

• Fentanyl Penalties (23-0023A1)

• Medi-Cal Fuding (23-0024A1)

• CEQA Lawsuit Restrictions (23-0025)

• Educational Savings Account (23-0026)

• Protect Kids of California (23-0027A1)

• Constitutional Requirements on Public Education (23-0028)

What We’re Hearing

Bonds

• Affordable Housing

• School

• Water/Environmental

That $1 per unit, per month, can help fund all of these efforts—if you get on board—and bring your colleagues along with you.

The Potential

We have a real opportunity to make a statement on behalf of every housing provider in California, that:

• Rent Control is not wanted here.

• The AIDS Healthcare Foundation should stop funding political battles with the housing industry.

• Taxes shouldn’t be placed on citizens without considerable support.

The alternative is equally a powerful statement if you fail to get involved:

• Your buildings are at the mercy of inflation.

• Your investments can and will be trampled on.

• Your ability to provide quality housing is subject to the whim of the voters.

It may seem hyperbolic, but it is the very real situation the rental housing industry is facing.

Commit to donating at least $1 per unit, per month, to the AAOC Issues PAC (Multi-County Property Rights PAC) to help defeat these measures and protect your ability to provide quality housing to your residents. OR…

Accept your fate that your buildings have one year left to live.