Issue link: https://www.ifoldsflip.com/i/960198
SANTA CRUZ SENTINEL WHO'S WHO IN REAL ESTATE FRIDAY, MARCH 30, 2018 3 S ome of the residents of the city of Santa Cruz are collecting signatures to put a rent control ordinance on the November 2018 Ballot. Citing the lack of affordable housing in the city of Santa Cruz, the purpose of the ordinance will be to control the amount rents can be increased from the current rent. The proposal will do nothing to alleviate the current high rents, it will just control how much rent can be increased. If I believed that Rent Control would solve the housing crisis, I would be the first to support it. The fact of the matter is that it WON'T solve the rental crises, only building more homes will alleviate the housing crises. A recent study shows that rent control impacts the quality of life for families' long term and in the following ways: 1. Reduces Supply of Rental Housing - When they can't get fair market price, investors have greater incentive to put their money in other types of property, which reduces the supply of rental properties. Investors who already own rental properties are also likely to respond by converting buildings from residential use to earn fair market value, which takes more rental property out of stock. Supply is also impacted due to low turnover. Rent controlled units are attractive to tenants so once they get into a controlled property, they are less likely to move regardless of whether they can afford to rent or buy a market rate property. This lowers turnover and limits the supply of affordable rental housing for the most in need. 2. Discriminates Against Low Income Families – The negative effects of rent control are felt disproportionately by low income people. First, not all rent controlled units are preserved for low-income tenants or "means tested". In Berkeley and Santa Monica, data showed that the beneficiaries of rent control are "predominantly white, well- educated, young, professionally employed and affluent and that rent control had substantially increased the disposable income of these tenants while "exacerbating" the problems of low-income families. 3. Quality of Rental Properties Deteriorates - When prices are capped, landlords are less likely to maintain rental properties. When landlords have to subsidize their tenants' rents, maintenance declines and has a spiraling effect on the entire community, lowering values, which in turn lowers tax revenue to local government. Less tax revenue undermines government maintenance and services and the cycle continues. A study of Los Angeles' rent control law found that 63 percent of the benefit to consumers of lowered rent C O N T I N U E S O N 4 . . . @scsentinel facebook.com/scsentinel SCS Sales Team Susie Ronzano Elyssa Campos Allison Mayorga Kim Perotti Circulation Director Mardi Browning Shiver 706.3265 mbrowning@santacruzsentinel.com Advertising Director Steve Bennett 831.429.2416 sbennett@santacruzsentinel.com President & Publisher Gary Omernick 831.706.3228 gomernick@sant acruzsentinel.com Production Asst Jackie White Section Design Greg Borrego by Renee Mello, President, Santa Cruz County Association of REALTORS® the rent control "all that glitters is not gold" debate