Rent Control, Rent Control, Affordable Housing, Affordable - PowerPoint PPT Presentation

Rent Control, Rent Control, Affordable Housing, Affordable Housing, an and Unintended Consequences Unintended Consequences PRESENTE PR TED BY TH THE ALB LBANY PR PROPE PERTY TY RIGHTS TS ADVOCATE TES

Flaws in the Flaws in the Commission Report Commission Report

1. L 1. Lack ack of of N Not otice an ce and P Proces rocess • Com ommissi ssion on made e no o direc ect effor effort to o infor form apartmen ent ow owner ers s nor or to o sol solicit input fr from om st stakeh ehol older ers s to o fr frame e resea esearch and argumen ents. s. • Com ommissi ssion on dem emon onst strated ed a willingness ess to o op oper erate e ou outsi side e of of impor ortant st statutes es inten ended ed to o en ensu sure e due e proc ocess. ess. • Com ommissi ssion on is s presen esenting an argumen ent for for immed ediate e action on ev even en while e acknow owled edging that it may req equire e su subst stantially mor ore e st study. • Entire e proc ocess ess has s been een mism smanaged ed.

2. L 2. Lack ack of of Rel Relevan evant an and S Support orted ed Dat Data • Misl slea eading asser ssertion on that med edian ren ent in Albany is s $3,100/mon onth. • Rec ecom ommen endation ons s for for city-wide e ren ent con ontrol ol wou ould on only apply to o 21.4% % of of hou ousi sing units s (n (no o con ondos os or or si single-fa family hom omes). es). • St Study offer offers s no o indep epen enden ent infor formation on as s to o what the e med edian ren ent or or aver erage e annual ren ent increa ease se is. s. • Com ommissi ssion on fa fails s to o presen esent st statist stics s which are e accurate e or or capable e of of withst standing ev even en cursor sory indep epen enden ent rev eview ew.

3. N 3. No Evi o Eviden ence of ce of Em Emergen ergency S cy Stat atus • Enactmen ent of of a mor orator orium can on only be e just stifi fied ed upon on clea ear and con onvincing ev eviden ence e of of a true e st state e of of em emer ergen ency. • Assu ssumption ons s of of the e ex exist sten ence e of of an em emer ergen ency based sed upon on fl flawed ed statist st stical con onclusi sion ons s and a sm small number er of of com omplaints s does oes not ot crea eate e an actual st state e of of em emer ergen ency. • APR PRA’s s fi findings s indicate e that the e aver erage e ren ent in Albany is s $1,637 per er mon onth based sed upon on 551 hou ousi sing units s su survey eyed ed (op (opposed osed to o the e $3,100 per er mon onth fi figure e presen esented ed by the e Com ommissi ssion on). ). • Cou ouncil has s no o just stifi fication on for for implem emen entation on of of any ren ent mor orator orium or or ot other er prev even entative e mea easu sures es at this s time. e.

4. 4. Abs Absen ence of ce of I Impact act S Study y • No o con onsi sider eration on is s bei eing presen esented ed as s to o whet ether er or or not ot the e mea easu sures es as s prop oposed osed wou ould be e effec effective. e. • Com ommissi ssion on ignor ores es the e pot oten ential for for neg egative e or or uninten ended ed con onseq sequen ences es resu esulting fr from om ren ent con ontrol ol. • Befor efore e it under ertakes es any action on that will irrev ever ersi sibly impact the e lives es of of the e citizen ens s of of Albany, the e Cou ouncil must st bec ecom ome e prop oper erly infor formed ed of of the e under erlying issu ssues. es.

5. Mi 5. Mislead eading Con g Concl clusion ons • Th The e rep epor ort of of the e Com ommissi ssion on includes es a number er of of misl slea eading and dec ecep eptive e st statem emen ents. s. • Th The e fi findings s presen esented ed by the e Com ommissi ssion on are e not ot su suffi fficien ently dev evel elop oped ed for for the e Cou ouncil to o con onsi sider er any pol olicy action on. • Th The e Cou ouncil sh shou ould mandate e that this s rev eview ew proc ocess ess be e ov over erhauled ed and rec ecom ommen enced ed under er the e direc ection on of of st stakeh ehol older ers s with approp opriate e ex exper erien ence e to o com omplet ete e an ob objec ective e and prop oper erly fou founded ed st study.

Real Considerations and Real Considerations and Arguments Arguments

1. The Econ e Econom omics cs of of Ren Rent Con Control rol If f ren ent con ontrol ol is s implem emen ented ed, including any for form of of mor orator orium or or just st cause se ev eviction ons, s, a number er of of unanticipated ed and undesi esirable e issu ssues es are e likel ely to o arise: se: • Drop opping prop oper erty values es and tax rev even enues es • Red educed ed invest estmen ents s in new ew hou ousi sing dev evel elop opmen ent • Disi sincen entive e to o maintain prop oper erties es and per erfor form upkeep eep • La Lack of of resi esiden ential bea eautifi fication on proj ojec ects • Dec eclining loc ocal diver ersi sity and red educed ed hou ousi sing availability • Loss Loss of of rec ecou ourse se for for unwanted ed ten enancies es

2. The S e Soci ocial al As Aspect ects of of Ren Rent Con Control rol • Ren ent con ontrol ol si signifi ficantly increa eases ses landlor ord-ten enant rel elated ed litigation on. • Sm Small-time e prop oper erty ow owner ers s who o ow own on one e or or two o prop oper erties es are e oft often en for forced ed ou out of of the e market et due e to o ren ent con ontrol ol. • Under er ren ent con ontrol ol, prop oper erty ow owner ers s are e less ess likel ely to o maintain thei eir prop oper erties, es, which may lea ead to o increa eased sed landlor ord-ten enant host ostility. • Con onver ersel sely, in the e absen sence e of of ren ent con ontrol ol, prop oper erty ow owner ers s ten end to o dev evot ote e mor ore e time e and effor effort to o en ensu suring that thei eir prop oper erties es are e maintained ed.

Al Alban bany H y Hou ousing U g Units ( (U.S .S. Cen . Census 2010) 2010) Subj ubject to ect to Not S ot Subj ubject ect to to Hous Housing ng Un Unit its Rent Control Rent Control Rent Control Rent Control Single Family 0 4,295 UC Village 0 974 Condos on Pierce Street 0 825 Condos not on Pierce Street 0 61 Apartments 1,678 0 Totals 1,678 6,155 Percentage 21.4% 78.6%

Ren Rent S Survey rvey Ren ent su survey ey of of 1, 2, and 3 bed edroom oom units s and st studios os in Albany, with ren ents s as s of of Sep Septem ember er 1, 2016. A tot otal of of 551 hou ousi sing units s are e included ed in the e su survey ey bel elow ow: Hous Housing ng Un Unit it Building Bui ngs i in S n Surv urvey ey Uni nits ts i in S n Surv urvey ey Averag erage Rent e Rent One bedroom 30 239 $1,426.00 Two bedroom 33 270 $1,768.00 Three bedroom 11 30 $2,378.00 Studios 4 12 $1,034.00 Th The e aver erage e ren ent in Albany is s $1,637 per er mon onth for for the e 551 hou ousi sing units s included ed in the e su survey ey.

Looking Forward Looking Forward

1. Al Altern ernat ative S ve Sol olution ons / / A Bet Better er Ap Approach roach • Su Suppor ort for for the e affor ffordable e hou ousi sing bon ond (Pr (Prop oposi osition on A1). ). • Pu Public su subsi sidies es for for building improv ovem emen ents s available e to o landlor ords s who o maintain bel elow ow market et ren ents. s. • Assi ssist stance e fu fund for for ten enants s ex exper erien encing fi financial hardsh ship. • City web ebsi site e for for hom ome-sh share e adver ertisem semen ents. s. • Incen entives es for for bot oth landlor ords s and ten enants s who o en enter er into o multi- yea ear lea eases. ses. • Crea eation on of of an affor ffordable e hou ousi sing resou esource e cen enter er for for ten enants. s.

2. Con Concl cluding Rem g Remark arks • Albany sh shou ould not ot want to o bec ecom ome e Ber erkel eley ey. • Ren ent con ontrol ol does oes not ot address ess the e lack of of affor ffordable e hou ousi sing. • Ren ent con ontrol ol ser serves es as s a disi sincen entive e to o maintain and build new ew prop oper erties es and fu further er red educes es the e su supply of of prop oper erty on on the e market et. • Ser Seriou ous s effor efforts s sh shou ould be e made e to o build mor ore e affor ffordable e hou ousi sing. • Albany is s a closel osely knit and prog ogressi essive e city and we e fi firmly bel eliev eve e that we e can wor ork tog oget ether er to o make e crea eative e and prog ogressi essive e sol solution ons s a rea eality.

Thank you Thank you TH THE ALB LBANY PR PROPE PERTY TY RIGHTS TS ADVOCATE TES FO FOR MORE INFO FORMATI TION: IN INFO@ALBANYPROPERTYRIG IGHTS.ORG