ACTION Apartment Association

Santa Monica Rents Double Under Full 'Vacancy Decontrol,' Report Finds

03/26/2018 3:52 PM | Margaret Fulton (Administrator)

March 26, 2018 -- A typical two-bedroom apartment at market rates in Santa Monica required a yearly income of $111,000 last year, according to an annual update on the state of the City’s troubled rent control system.

It also shows dramatic rent differences in apartments that haven’t been vacated under the 1995 Costa-Hawkins Rental Housing Act and are still pegged to the 1979 caps on rent.

Median market rates are about double the monthly rent paid by tenants who occupied their units before the law -- which allows landlords to charge market rates for most vacated units -- went into full effect in 1999.

Median monthly rents for units occupied before Costa-Hawkins were $786 for a studio (compared to $1,498 under market rates), $900 for one bedroom (compared to $1,907), $1,143 for two bedrooms (compared to $2,505) and $1,460 for three bedrooms (compared to $3,200).

SMA.R.T.-HAVE YOU BEEN RETROFIT YET?

03/26/2018 3:50 PM | Margaret Fulton (Administrator)

After the article was published, the City swung into action, funded a new study and eventually assembled a new list of vulnerable buildings. A year ago Santa Monica City Council passed a new law ordering structural reviews of buildings on the list, and repairs where necessary. Notices were mailed to owners, and the retrofit program began. The program includes more than a thousand two- and three-story apartment buildings with parking on the ground floor. Many of these are known as “dingbats,” with first-floor parking accessible from alleys behind the buildings.

To help owners and renters with this process, the City has published comprehensive information on the internet. Two of these pages are:

https://www.smgov.net/Departments/PCD/Programs/Seismic-Retrofit/Resources-for-Property-Owners

https://www.smgov.net/Departments/PCD/Programs/Seismic-Retrofit

Read More: https://smmirror.com/2018/03/sma-r-t-retrofit-yet/

Supervisor Kuhl & LA County Housing Authoryty: HouseLA

03/26/2018 8:06 AM | Margaret Fulton (Administrator)

Supervisor Kuehl, in partnership with the Housing Authority of the County of Los Angeles, will be hosting the below HouseLA event on Wednesday, April 11.

This event will focus on new incentives available to landlords who rent to individuals and families who have experienced homelessness.

AND: https://www.eventbrite.com/e/housela-tickets-43465207606

O.C.'s grand homeless plan collapsing

03/26/2018 7:55 AM | Margaret Fulton (Administrator)

Just a few days ago, Orange County appeared to have a grand plan to deal with its swelling homeless population.

But the plan is now in serious jeopardy after those three communities vowed to do whatever it takes to keep the shelters out. Leaders in Irvine and Laguna Niguel voted to sue the county to block the shelter plan, and local officials want to drop the Huntington Beach location.

Santa Monica Landlords Plead Case for Continuing to Pass Rising Surcharge Costs to Renters

03/23/2018 2:24 PM | Margaret Fulton (Administrator)

March 23, 2018 -- After hearing from anxious landlords and tenants, Santa Monica’s Rent Control Board on Thursday asked staff to explore if -- and by how much -- both can share the rising costs of surcharges property owners now pass through to renters.

The board ordered more analysis on the possibility of instituting a cap on the total in surcharges the renters can absorb, based, for example, on total rent paid.

Santa Monica Rent Control Board Tables Vote on Measure to Expand to More Units

03/23/2018 2:21 PM | Margaret Fulton (Administrator)

March 23, 2018 – Saying it needed more time for consideration, Santa Monica’s Rent Control Board Thursday tabled a motion calling for a measure on the November ballot to expand local rent control.

The motion asked the board to recommend a City measure for next fall’s election to expand rent control to apartment buildings that have seen many rents soar after the passage of the 1995 Costa-Hawkins Rental Housing Act and, potentially, to others not covered by rent control.

L.A. to explore helping property owners pay for earthquake retrofitting repairs

03/23/2018 8:16 AM | Margaret Fulton (Administrator)

A Los Angeles City Council committee agreed this week to explore ways of helping property owners finance costly seismic retrofits required by law in roughly 15,000 buildings.

The city passed an ordinance in 2015 requiring the retrofitting, but the high upfront costs can cause enormous financial strain on property owners and could prevent its implementation, according to a motion introduced by Councilman Mitchell Englander and approved Monday by the Budget and Finance Committee.

Santa Monica Rent Control Board to Consider Changes to Property Tax-Related Surcharges

03/22/2018 8:13 AM | Margaret Fulton (Administrator)

Public hearing scheduled for this Thursday, March 22nd

WHEN: Thursday, March 22, 7 p.m.

WHERE: City Hall, Council Chambers, 1685 Main Street, Santa Monica, CA 90401

SANTA MONICA, Calif. – The Santa Monica Rent Control Board is considering changing the way that landlords pass through portions of their property tax bills to tenants as surcharges on controlled rents. Today, landlords can in most cases pass through five line items on their tax bills that relate to things Santa Monica voters approved. They include:

Bonds for improvements in the Santa Monica-Malibu Unified School District
Bonds for improvements at Santa Monica College
The Stormwater Management Fee
The Clean Beaches and Ocean Parcel Tax
The Santa Monica-Malibu Unified School District Parcel Tax

Local leaders to consider rent control reform

03/21/2018 4:53 PM | Margaret Fulton (Administrator)

As proponents of a statewide voter-initiative gather signatures to put rent control reform on the November ballot, the Santa Monica Rent Control Board is considering a ballot measure of its own. If both measures are successful, the RCB would regain control over the monthly rate of thousands of apartments in Santa Monica.

The Affordable Housing Act would put Costa-Hawkins up for repeal, potentially upending the law that allows landlords to lease rent-controlled apartments at market rate after a tenant moves out. If passed, the ballot measure would allow cities to decide whether to control rental rates. So far, signature gatherers for the Affordable Housing Act have gathered about 25 percent of the 365,880 signatures they need to have by June in order to put the initiative on the ballot.

To not miss a beat, the Rent Control Board Thursday will debate a tandem local measure which, if approved, would immediately give the RCB power to dictate rents in thousands of units across the city.

Future Bonds in Jeopardy if Rent Board Nixes Pass-Throughs, Santa Monica Property Owners Warn

03/21/2018 4:43 PM | Margaret Fulton (Administrator)

March 21, 2018 -- Santa Monica property owners are warning the City's Rent Control Board that eliminating pass-throughs to tenants in the form of surcharges could jeopardize the future passage of funding measures.

The city's landlords and their organizations have traditionally stayed on the sidelines when local voters have approved bonds and parcel taxes to fund capital projects, primarily for the School District and College.

So far that has been the case -- with the approval of six bonds totaling more than $1.5 billion since 2012 -- because the Rent Board has allowed property owners to pass the surcharges on to tenants, usually in the form of small rent increases.

But with those surcharges rising in buildings that are reassessed when they sell, the Board is considering eliminating the pass-throughs, a hotly debated issue it will take up at its meeting Thursday ("Santa Monica Rent Board to Discuss Eliminating Surcharges for Existing Tenants," March 20, 2018).