Capitol News

California

CAPITOL NEWS

By Pat Moran, Aaron Read & Associates

As a result of the COVID-19 pandemic, last year’s legislative day had to be cancelled. As we all adjusted to the realities of the closures and new work from home requirements, the Southern California Rental Housing Association (SCRHA) would not be deterred and cancel another legislative day; and they didn’t. If we couldn’t go to the Capitol, we would bring the Capitol to us by holding our first ever virtual Legislative Day. SCRHA met with all legislative representatives and/or their staff within our sphere of influence.

We primarily discussed clean-up issues pertaining to SB 91, the “Rent Relief” legislation and had the opportunity to touch on a few other issues as well. All-in-all the two days of virtual meetings were very productive with participation from many SCRHA members who were able to discuss the impact of COVID and SB 91 on the rental housing industry. It is something we will consider doing again should in-person meetings remain limited as we slowly ease out of COVID restrictions. Who knows, maybe we will do both in person and virtual events in the future. Thanks to all that participated. As the legislative year makes marches on, the SCRHA continues to lobby the Legislature on issues pertaining to SB 91 clean-up. The debate now revolves around what to do next, if anything. Some legislators feel a continuation is unnecessary as the state is due to open-up June 15 (per Governor Newsom). Others feel a continuation may be necessary as we come out of COVID restrictions. Should the latter thinking prevail, the SCRHA will need to see some changes to SB 91 if they chose to continue to kick the can down the road.

The year is not without its success. We managed to have several bills held in committee thus making them two-year bills. They include:

AB 15 and AB 16 both by Assembly Member Chiu - These bills were to be used for issues related to the eviction moratorium and additional protections. Considering the author is no friend of the rental housing industry and once authored rent cancellation bill, we were concerned these vehicles would be used for a similar purpose. They are now two-year bills.

AB 1188 (Wicks) - Another bill by her creating a rental registry; this time at the local level. While the bill isn't dead, it has been significantly amended and now requires the Department of Housing and Community Development (HCD) to save certain data, including data from the statewide rental assistance program, for a period of not less than 10-years. We forced additional amendments that “Personal information collected for the purposes of the state rental assistance program that pertains to the application for or receipt of rental assistance by any individual or household shall not be subject to public disclosure under the California Public Records Act.”

AB 854 (Lee) - The proposal would prohibit rental housing providers from using the Ellis Act to terminate tenancies and exit the rental market until all owners of the property have held their ownership interest for five years or more. It also would prohibit owners from attempting to ever remove a second building from the market. The bill is opposed by SCRHA and is now a two-year bill.

AB 1199 (Gipson) - This bill would impose an annual excise tax on a person or entity owning 10 or more multifamily or single-family rental properties. The tax rate would be based on the gross receipts of the rental income, an amount not defined. The SCRHA opposed AB 1199 and, as a result of our opposition, and others, the author pulled the bill.

AB 1241 (Jones-Sawyer) - His annul bill making almost impossible to use criminal background checks when screening prospective applicants. Thanks to BUDGET The California Senate released an updated Senate proposal that includes rental assistance and addresses California’s homeless crisis and housing shortage.

The “Build Back Boldly” plan includes the following:

• Bringing tax fairness and relief for renters by reforming and expanding the renters tax credit.

• Providing “first and last month” rental assistance to remove a key barrier for those experiencing homelessness to move back into permanent housing.

• Establishing a financing tool for accessory dwelling unit construction to produce more affordable units.

• Providing incentives to convert vacant or underused commercial and retail space into affordable housing.

• Providing emergency grants to low-income homeowners to avoid foreclosure.

• Incentivizing earthquake retrofit with federal 75 percent match funds.

More to come as the Legislative session continues!

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Protecting Affordable Housing Is More Cost Effective Than Producing It

The cost of housing in San Diego, like in much of the state, is getting more and more out of reach for many residents.

Homelessness is on the rise, and California’s push to build 1.8 million new affordable housing units by 2025 has prompted new legislation that could dramatically alter the look of our cities and suburbs in the years to come.

There are two different approaches to addressing this problem. We need to pursue both.

Producing new affordable units is a part of the solution, but doing so is very costly – conservatively averaging more than $500,000 per unit around the state and in

By Ali Sahabi, Optimum Seismic, Inc.

locations far more. Producing new affordable units also takes a long time. • Protecting our existing affordable housing units – the many thousands of older apartment buildings throughout California that typically house lower income families, senior and students – can be done for a fraction of the cost and much more quickly with earthquake retrofits.

In my industry, one thing that has troubled me is the disparity found in building safety. Too often, our most vulnerable structures are those housing our most vulnerable populations. We can and should make these older, more affordable structures better and safer.

Socio-economic imbalance

When it comes to earthquakes, older structures make up most of a city’s dangerous building stock, and much of that is used as housing or in business – for lowerwage commercial operations such as manufacturing, logistics and service-related industries.

These structures, because of their age, are more affordable to rent. But many types built in the mid-1970s or earlier – such as soft-story apartments built over open parking areas – can have structural deficiencies that put them at risk in a major earthquake.

That puts lower-income residents at a greater risk of death or injury in a quake. It also increases the risk of these vulnerable populations being displaced in a disaster.

Should the Rose Canyon Fault unleash a major earthquake in San Diego, many existing structures will likely be lost. That can bring severe economic disruption to this city as potentially thousands of people are left without a roof over their heads or a job to provide for their families. Many will be forced to leave the area, live in transitional housing, or face homelessness.

Buildings still standing after the disaster will be priced higher, due to demand, and will likely squeeze out many who were displaced.

Building Safety: A Universal Benefit

Ultimately, identifying our most vulnerable buildings and earthquake retrofitting them for resiliency helps keep our communities healthy. And that’s good for everyone.

Improving building safety ensures economic stability and protects affordable housing to help keep our communities strong. That’s also good for everyone.

Upgrading existing structures is also more economical and better for the environment. It also helps to preserve the character in more established neighborhoods. Improving building safety ensures economic stability and protects affordable housing to help keep our communities strong. That’s also good for everyone.

Learn more about the impacts of earthquakes on community resilience and what many regions around the state are doing by watching “The Resilience Advantage” – an ongoing webinar series featuring experts addressing risks, building safety, social concerns, and business and economic impacts associated with seismic resilience of buildings. There is no cost to attend.

Ali Sahabi, a licensed General Engineering Contractor (GEC), is co-founder of Optimum Seismic, Inc., which has completed more than 3,500 seismic retrofitting and renovation projects for multifamily residential, commercial, and industrial buildings throughout California.

Stop Removal Of All Parking Along 30th Street

Help Us Protect Our Investments

By Diane Strum

More than ever before it seems like rental owners are being punished by lawmakers for providing housing for those who cannot afford to purchase homes or choose not to. At all levels of government, onerous legislative proposals make it riskier, less desirable, and more expensive to own rental housing, especially for small independent owners who invested to help afford retirement. But what happens when government decisions are made that do not come up for a vote and are implemented with no due diligence, opportunity for public involvement or effort to explore the impacts their decisions would have. Such is the case in North Park where former Mayor Kevin Faulconer and City Councilman Chris Ward listened to special interest groups—bike riders. Consequently, they decided that to help “meet climate control mandates,” protected bike lanes should be implemented on both sides of the street all along 30th Street--from Normal Heights through North Park to South Park. To accommodate the protected bike lanes, all street parking is to be removed. Mayor Todd Gloria also supports this plan.

A group of local North Park residents, rental housing providers and businesses are spearheading an effort to stop the removal of street parking along 30th Street. Rental housing owners in the area, most of whom are independent owners, are concerned with the impacts this will have on their residents and their ability to rent units. The vast majority of the rental properties rely on street parking and have no onsite parking for their tenants.

This plan disregards the legitimate needs of the residents and businesses in the area. Buses, emergency vehicles, trash, deliveries, U.S. Mail, and ridesharing vehicles will be forced to stop in traffic lanes, causing congestion and confusion. Meanwhile, the vast majority of the proponents of removing parking to accommodate protected bike lanes want it for recreational purposes.

The irony is that three blocks west is Utah Street that parallels 30th Street. It is wider, less traveled, no bus stops, no businesses, and is specified on the SANDAG Master Bike Plan. However, lawmakers and bike advocates refuse to consider Utah Street as a viable alternative.

We need your help.

Q: What can you do to support the preservation of 30th Street parking?

A: Save 30th. Street Parking has hired a local land use and environmental attorney and a lawsuit was filed in August 2019. He will represent us in court when this matter is presented to a judge. Help us by contributing to our legal fund. Visit our Donate page at www.save30thstreetparking. org.

B. Send letters and make phone calls to our representatives to express opposition to this plan:

Todd Gloria - Mayor mayortoddgloria@sandiego.gov (619) 236-6330

Joe LaCava - District 1 joelacava@sandieog.gov (619) 236-6611

Jennifer Campbell - District 2 jennifercampbell@sandiego.gov (619) 236-6622

Stephen Whitburn - District 3 stephenwhitburn@sandiego.gov (619) 236-6633

Monica Montgomery Steppe - District 4 CD4News@sandiego.gov (619) 236-6644 Marni von Wilpert - District 5 marnivonwilpert@sandiego.gov (619) 236-6655

Chris Cate - District 6 chriscate@sandiego.gov (619) 236-6616

Raul Campillo - District 7 raulcampillo@sandiego.gov (619) 236-6677

Vivian Moreno - District 8 vivianmoreno@sandiego.gov (619) 236-6688

Sean Elo Rivera - District 9 seanelorivera@sandiego.gov (619) 236-6699

Apartment owners, property management companies and realtors in the area, please get involved in this effort to protect residents, businesses, and owners from this ill-conceived plan.

Lastly, if you are interested in receiving updates on this vital campaign to protect our investments, e-mail dianestrum@earthlink.net

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"SCRHA has been a very important organization for Newman Windows and Doors. SCRHA allows me to directly meet and work with Property Managers and other valuable Suppliers in a casual setting by getting involved in committees and events.

SCRHA has also been a forum to learn about the updates and changes in the industry. The connections and relationships that the SCRHA has allowed me to make are priceless."

Alexandra Casciato, Newman Windows & Doors