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HomeMy WebLinkAboutItem 5.1 HAC Attachment 3 - Chula Vista Just Cause Evictions Proposal The Trusted Voice of San Diego Real Estate January 19, 2022 Ms. Anna Cabral, Committee Chair Members of the City of Chula Vista Housing Advisory Committee City Hall Building A, Room C-101 276 Fourth Avenue, Chula Vista 91910 RE: January 19, 2022 Meeting Agenda Item 5.1 – “Consideration of Recommending Adding A Proposed Tenant Protection Ordinance To The Chula Vista Municipal Code” Dear Chair Cabral and Members of the Housing Advisory Committee: On behalf of the Greater San Diego Association of REALTORS® (SDAR), I am writing to share our opposition to the proposed tenant protection ordinance under consideration by the Chula Vista Housing Advisory Committee. Provisions in this proposal run contrary to our shared commitment to expanding safe, affordable and sustainable housing options for Chula Vista residents. With more than 20,000 members, SDAR is the largest trade association in San Diego County and among the largest local REALTOR® associations in the United States. For more than 100 years, our association has remained steadfast in a commitment to protecting private property rights and to helping individuals realize the dream of homeownership. SDAR works alongside leaders and organizations throughout San Diego County to address our housing supply crisis, which continue to drive up housing costs and impact our working families. We also strongly supported calls for rental assistance at the outset of the COVID-19 pandemic to assist families directly impacted by COVID-19 and to make certain housing providers – especially our “mom-and-pop” owners – are able to continue providing safe and clean housing options despite these ongoing challenges. Today, the COVID-19 pandemic continues to be a challenge not just for renters in our region, but certainly to the housing providers who are working to navigate complex new regulations and access resources provided by the state and our local municipalities. Some of these challenges and the actions taken by housing providers to serve their tenants are highlighted in a recent study prepared by the Point Loma Nazarene University’s Fermanian Business & Economic Institute for the Southern California Rental Housing Association (SCRHA). The study found that housing providers in San Diego and Riverside Counties lost approximately $3.8 billion in rental income (Reaser, Marshall, Augustine, & Liggins, 2021). According to the SCHRA (SCRHA News, 2021) despite the challenges and uncertainty of future rent payments, property managers supported their tenants in several ways, including: • 53% of housing providers negotiated temporarily reduced rental rates • 47% of housing providers agreed to waive late fees and penalties • 32% offered a payment plan • 15% removed the penalty for early lease termination • 11% offered rent forgiveness What we’ve learned throughout this process is that the rental housing policies we put in place must remain balanced and must bring both tenants and housing providers together toward a shared goal of expanding the supply of safe and affordable housing options in Chula Vista. We remain concerned that this proposal will instead create division among these groups and lead to several unintended consequences. Our concerns include: 1. Determining the Extent of the Issue According to Chula Vista staff, this proposal was developed in response to only two complaints where the same landlord is accused of issuing an eviction notice based on a false claim of intending to substantially renovate the home. The issue remains unresolved and is currently in the courts given the allegations of the tenants. The City should not advance such a far-reaching proposal based off two complaints that would apply to thousands of rental units without having a better understanding of the extent of this issue and whether existing law already resolves these concerns. 2. Forcing Independent Mom-and-Pop Housing Providers Out of Business A majority of housing providers are mom-and-pop owners, including many seniors who rely on rental income to make ends meet. This proposal includes complex new regulations and steep fines allowing for civil actions and damages in the amount of $2,000 to $5,000 per violation. What’s more, situations may arise wherein a senior may need to move back into their property due to an unforeseen circumstances, but would no longer be able to do so as a result of this proposal. The City of Chula Vista should not move forward with regulations without understanding the full extent of how this proposal will impact mom-and-pop housing providers, especially seniors, who may rely on rental income to make ends meet and sustain their retirement. These regulations run the risk of replacing local housing providers with wealthy out-of-town investors and creating “slumlords” who lack the resources to maintain their property. 3. Unintended Consequences to Communities and Housing Supply The provisions included in this proposal run the risk of pushing more housing providers out of the rental industry, which will limit inventory and drive-up costs for our families in Chula Vista. Of particular concern are the revisions to what are already state-imposed penalties regarding relocation assistance as part of AB 1482 without first understanding the full impact of this current law. Additional provisions regarding relocation assistance, specifically changing the amount of the assistance from “existing rent” to “market rent”, in combination with doubling the number of months for which payment is owed, is particularly concerning without data on our existing laws and their impact on the ability of housing providers to sustainably operate in our region. Further, this proposal creates a clear disincentive for investing in our housing and imposes additional hurdles for evictions, which could lead to blight in our communities and the protection of problematic tenants deemed a menace to neighboring families. Finally, the additional provisions extending noticing terms for seniors and individuals with disabilities could lead to concerning and even discriminatory rental practices. Moving forward, we ask that you do not recommend this proposal for consideration by the Chula Vista City Council. We believe these issues can best be resolved through education and awareness programs supported by our various stakeholder groups. We welcome the opportunity to participate in these programs and stand ready to assist. Thank you for the opportunity to provide input on this important issue. Please contact Ryan Maxson with any questions at rmaxson@sdar.com. Sincerely, Chris Anderson, President Greater San Diego Association of REALTORS® References Association, S. C. (2021, November 2). SCRHA News. Retrieved from Southern California Rental Housing Association: https://www.socalrha.org/news/southern-californiahousing-providers- lost-38billion-in-unpaid-rentsincethestart-of-pandemic Reaser, L. P., Marshall, L., Augustine, B., & Liggins, C. (2021). Rental Housing Conditions, Outlook, and Policies in San Diego and Riverside Counties. The Southern California Rental Housing Association.