Despite concerns from numerous property owners, tenant advocates fed up with San Mateo’s rising cost of living and reports of no-cause evictions have succeeded in having rent control on the November ballot.
As required by law, the San Mateo City Council gathered Monday night to place a citizens’ initiative titled “The San Mateo Community Preservation and Fair Rent Charter Amendment” for a vote in the next election.
Property owners adamantly opposed to the proposition expressed fears that the restrictions would worsen the housing crisis and only benefit a few existing tenants while overly burdening landlords.
More than the required 7,119 residents signed a petition in support of the controversial proposal that seeks to cap rent increases at the regional consumer price index and instate just-cause eviction regulations. Single-family homes, condominiums and owner-occupied duplexes are exempt. If approved, the law would not apply to any future housing developments. Per state law, all apartments constructed after Feb. 1, 1995, would not be subject to the proposed rent stabilization measures, however, residents of existing multi-unit dwellings would receive protection against being evicted without cause.
Tenant advocates announced they would head to the ballot shortly after the City Council and its housing task force were unable to reach a consensus on less stringent proposals earlier in the year, such as a just cause eviction and relocation assistance program.
Immediately after placing the citizen’s initiative on the ballot Monday night, Mayor Joe Goethals moved to again consider a relocation assistance program prior to the election. Goethal’s earlier proposal, which narrowly failed to garner the necessary support, was to require landlords who give a more than 10 percent rent increase to pay some type of relocation assistance to tenants who are displaced. The council will again study the issue at an upcoming meeting.
“We live in interesting and challenging times. For some, this economy is the best of times and we know that’s not true for everyone. We know the middle class and our lowest paid employees are being squeezed and displaced,” Goethals said. “I don’t know how I’m going to vote on this ballot measure in November, but I know it’s going to be on the ballot. And I know that the council should make a statement about that, negative, impartial or otherwise, and that we need to get as much analysis onto the ballot so people are educated when they vote.”
Although Monday’s action was ministerial and officials could not circumvent the public initiative process, members of the council and public used the opportunity to weigh in.
Opponents — such as many landlords, the California Apartment Association and the San Mateo County Association of Realtors, or SAMCAR — argue the ballot measure would do little to address the affordable housing crisis while putting property owners at a disadvantage.
“I think that the proposed legislation is bad for San Mateo. I think it will lead to property owners not improving their property,” said Cary Kletter, a San Mateo resident and rental property owner. “It will exacerbate the very problem it purports to resolve. …Trying to artificially keep some rents low will not decrease demand for housing.”
Many cited San Francisco’s history with rent control as cause to be concerned and urged the council to conduct a fiscal impact report. Opponents noted the Rental Housing Commission formed as part of the proposed ordinance could be costly for the city to maintain.
The council directed staff to conduct a fiscal analysis of how the proposed law might impact the city’s budget and will consider it at its Aug. 15 meeting — just a few days before the deadline to submit ballot arguments.
Jennifer Martinez, executive director of Faith in Action Bay Area which organized the ballot initiative, noted the economic impact if employers such as restaurants, health care fields and others businesses can’t afford to retain workers. She also emphasized the proposed measure provides the city some flexibility with how it sets up the complaint-based rental commission.
The contentious issue comes before a city wherein nearly half of the households are renters and reports indicate prices have risen between 30 percent and 50 percent over the last four years with the average one-bedroom going for more than $2,500.
Josh Hugg, a housing advocate and San Mateo sustainability commissioner, said extreme circumstances demand exceptional responses and while the measure may not be perfect, it’s needed along with the production of new units.
“We need more housing that’s affordable to the people that live and work here,” Hugg said. “That will take many years and millions if not billions of dollars across the region and this measure is an important step forward to stabilize our community.”
In an effort to deter property owners from preemptively raising prices, the proposed law would tie “base rents” to what a tenant paid in late September 2015 — the time at which the council first began its task force process. Rents would be tied to CPI but no more than 4 percent, with an up to 8 percent rolled-over increase. Rents could also not be increased more than once a year.
The measure would need a simple majority to pass, and both proponents and opponents are expected to spend the next few months campaigning.
At Monday’s meeting, the council also proceeded with placing an unrelated measure on the upcoming ballot. San Mateo is considering merging its fire department with the cities of Belmont and Foster City. The three neighboring cities already share command staff having begun to consider forming a new department through a Joint Powers Agreement. Each city would have to dissolve its existing department before forming a new one.
San Mateo is in a unique position as forming the JPA would require a voter-approved charter amendment.
Arguments for or against either ballot measure are due by Aug. 19 with rebuttals permitted up until Aug. 29.