Is Public Opinion on Rent Control Shifting?

By now you are probably aware that AAOC filed a lawsuit in February against the city of Santa Ana over its rent control and just cause eviction law.

And by the time you read this, it is likely that the complaint has been amended to include additional findings that further illustrate just how wrong this policy and its process of adoption has been.

Lastly, by the time you read this, there will have been no fewer than a dozen articles about AAOC’s vehement opposition to not only Santa Ana’s rent control law but to calls for rent control in other local jurisdictions as well.

The Orange County Register, The Epoch Times, The OC Independent, The Voice of OC, New Santa Ana, and several other blogs and publications have taken a look at what is happening in Santa Ana. One thing has seemed to remain consistent through all of them.

They aren’t reporting rent control in a positive light.

What’s more, the conversation around rent control seems to have—at best—stagnated.

The tired cries of oppressive rent increases and unresponsive property management seem to have hit their fever pitch, presented themselves as overthe-top, and begun to subside. City staff, city councils, and community leaders have all but turned from these messages and are seeking different solutions. Housing remains expensive, but many cities are realizing that it is largely due to the fact that housing isn’t being built in their communities—not because of “greedy landlords.”

Even the pro-rent control forums, online groups, and organizers have fallen silent. Recent postings about rent control in a popular Santa Ana Facebook group (with over 10,000 members) have yet to produce a single anti-landlord comment.

So, what gives?

The Downsides of Rent Control

Well, a large part of it could be fallout from what Santa Ana has done –and cities seeing the results of it.

• Virtually no permits have been pulled for new residential construction in Santa Ana.

• Increasing conflict between the city of Santa Ana and property owners has become apparent as the city moves forward with implement of the ordinances.

• Several lawsuits have been filed against the city of Santa Ana regarding the laws.

• Property owners are selling out of their interests in Santa Ana.

• Apartment complexes in Santa Ana are remaining on the market much longer as a result of declining interest in investing in the city.

When it comes to cities, you’re either growing—or you’re dying. And from the outside, a number of cities are looking to Santa Ana and not wanting to see that to happen to their city.

Political Impact of Bad Policies

Another large part of it could have to do with the political fallout of these efforts. The Santa Ana Police Officers Association has enacted a recall on two members of the Santa Ana City Council —Jessie Lopez and Thai Viet Phan.

Both council members just happened to have voted for Santa Ana’s rent control and just cause eviction law.

While this recall effort is being led by another organization entirely, landlords and rent control has landed itself squarely in the middle of this recall efforts when it comes to messaging.

Councilmembers Lopez and Phan have both accused “greedy corporate landlords” of backing this recall effort —with no evidence to back that up.

The issue of what rent control is doing to the city is a core message in the larger argument being made as to why these two need to be removed from office.

Politicians looking at this outcome are not looking to invite such scrutiny on themselves—especially as they are seeing the negative outcome the policy is having on the city.

A Fundraising Opportunity

The AAOC lawsuit is going to be expensive. That much is certain. And while we were able to tap our Legal Defense Fund to initiate the lawsuit, it will require additional support in the form of generous financial contributions from members like you. So, before we go any further, please consider making a personal and/or company contribution and visit https://www.aaoc.com/ legal-defense-fund to donate online.

However, we aren’t the only ones who are fundraising off this issue. Several candidates for city council in different cities are already citing reallife examples of what is happening in Santa Ana to make their case as to why they need to be elected or re-elected. Political candidates are realizing the value of supporting private property rights in their campaigns again – something that we haven’t seen since the early 2000s—when eminent domain was a major campaign issue.

The Start of a Shift

For the better part of a decade, we have seen attack after attack, after attack on the multifamily industry. Regulations, restrictions, and rent controls have clawed back the ability of many industry professionals to effectively provide quality housing under California’s laws. Politicians have lauded their anti-landlord platform as a badge of honor for some time.

That may be changing.

The National Apartment Association (NAA) recently established a coalition with the National Association of REALTORS® and the National Mutlifamily Housing Council to oppose rent control efforts nationwide.

Locally, we have built coalitions beyond the traditional housing association advocates.

Chambers of commerce are once again meaningfully engaging in public policy—including housing policy—as they reach out to oppose these efforts in their own cities.

Reporting, social media groups, op eds, and conversation are all turning on this issue.

But the fight is far from over. We currently have the most aggressive state legislative calendar in history in Sacramento. There are still activists organizing to advocate for and implement rent control ordinances, and we are by no means an industry that draws sympathy. There is even a signature gathering effort right now seeking to qualify a ballot initiative to implement rent control even further in our state.

The tide may be changing, but we must do our part to ensure things continue moving in our direction if we are to ultimately be successful.