California Lawmakers Seek to Suspend Costa Hawkins

In the latest rental market news, lawmakers in California are seeking to pressure Governor Gavin Newsome to suspend Costa Hawkins, the 1995 Rental Housing Act.

How? There is currently a new bill on the November 2020 ballot called the Rental Affordability Act which seeks to expand rent control in California but the sponsors of this bill have stated that they will withdraw it “in the spirit of cooperation” if the Governor suspends Costa Hawkins.

Costa Hawkins Has Been Under Fire Since Day One

The latest attack on Costa Hawkins is nothing new in California considering that the law has literally been under fire since the day that it was passed back in 1995.

As recently as November 2018, a bill titled the Affordable Housing Act sought to suspend Costa Hawkins, but it was defeated by voters.

With COVID-19 leaving a major impact on California’s economy, and rental market, millions of people in the state are now unemployed so it’s easy to see why Costa Hawkins is in the sights of lawmakers.

There’s no doubt that the state faces hard choices since there potentially are millions of renters who won’t be able to pay their rents in the months ahead but is suspending Costa Hawkins the answer?

State-wide rent control was already passed into law last year when the Governor signed AB 1482, a law that caps limits rent increases at 5% per year plus inflation until January 2030, but most politicians in the state feel that California isn’t doing enough to protect renters.

As we get closer to November 2020, momentum will continue to build in support of the Rental Affordability Act and unless Governor Newsom suspends Costa Hawkins, we can expect this bill to be on the ballot for the November 2020 election.

What’s Next?

The best thing that voters in California can do is to educate themselves on the perils of pushing for more rent control in the state because eliminating Costa Hawkins, or passing the Rental Affordability Act, will only produce dire economic consequences in California that will last for years to come.

Even though the rental market in California needs massive change, the key to that change isn’t rent control.

What most people who support rent control measures don’t know is that rent control has a history of failure in every state that it’s been implemented.

Any time rent control is passed, supply always dries up and builders will not build more rental units because they are turned away by price controls.

California has a supply and demand problem that will not improve until more rentals are built state wide to meet the demand of renters.

Contact GoldenWest Management

To learn more about the property management services that we can offer you contact us today by calling (866) 545-5303, or click here to connect with us online.

California Legislate News – Learn more About the Laws Affecting Landlords and Rentals

After Proposition 10 was defeated in the November 2018 elections many landlords thought that the battle over rent control in California was over but sadly that’s not been the case.

The defeat of Prop 10 only put the battle on “pause” as our elected officials in California went back to the drawing board to create more legislation that will bring statewide rent control to the Golden State in one way or another.

Here’s a breakdown of the laws that will make the rental market tougher for landlords in California if they are approved.

AB-330 – Legislation That Will Increase Court Fees for Most Landlords

With AB-330, select courts across California would appoint attorneys for tenants who aren’t able to afford legal representation when they come to court for landlord-tenant or other civil issues.

Even though the goal of AB-330 is also to provide victims of domestic violence with a court-appointed attorney, the reality is that the cost of this bill will be astronomically high, especially for landlords who live in rent-controlled areas, and are not able to raise rents to keep up with their rising costs.

AB-1482 – Rent Control Comes Back

Besides AB-330, another bill to be on the lookout for in California is AB-1482. This bill seeks to cap rents across the Golden State at 5% plus the cost of living and it would nullify Costa Hawkins, the 1995 rent control act.

If it reaches his desk, Governor Newsom has promised to sign any rent control legislation so we can count on the battle over this contentious issue reaching a fever pitch in the coming months.

Sadly, if AB-1482 is approved it’s projected that we will see a further decline in rental housing construction in California because there will be fewer companies that would build here due to rent control.

The problem with affordable housing in California doesn’t just have to do with high rents, it has everything to do with supply and demand. If there are fewer properties available for rent this will naturally increase the cost of the housing supply that’s left.

Landlords across California should call their elected representatives to protest these bills and stay on top of the efforts to enact statewide rent control because it’s already a reality in Oregon and if owners, landlords, and tenants don’t continue to fight it, we could see statewide rent control here sooner rather than later.

Contact GoldenWest Management

To learn more about what’s happening with rent control in California, or to speak with us about our property management services, contact us today by calling (866) 545-5303 or click here to connect with us online.

 

GoldenWest Management
Investment Property Solutions
CA LIC# 071791904

Housing Officials Warned of Blanket Ban on Ex-Offenders

In the past it wasn’t uncommon for some landlords across the United States to have a some type of ban on renting to anyone with a criminal record but times have changed and thanks to recent changes by the Federal Government criminals can sue landlords for discrimination because failure to rent to anyone with a criminal record is a violation of the Fair Housing Act.

Arrests Must Not Ban Be Reason to Ban Applicants

Thanks to recent guidelines released by Julian Castro, HUD secretary, landlords must make a distinction between arrests and convictions when deciding not to rent to an tenants because they have a criminal record.

Federal Officials give landlords some flexibility here by stating that a landlord can prove that their decision to not rent to someone can be considered to be justified based on the severity and or nature of the applicants crime but landlords need to tread carefully here because the legal system is changing and thousands of inmates are being paroled across the United States after serving time for minor drug convictions.

All Applicants Must Get Fair Consideration

Thanks to a recent interview we know that HUD Secretary Julian Castro supports this new legislation because he feels that some individuals with criminal records who are trying to re-enter society after a previous crime are being unfairly banned from some rental properties regardless of the nature or severity of their crimes.

Besides not renting to certain individuals with criminal records landlords must not ban Latino’s or Blacks because this practice has had what’s known as “disparate impact” on people of color in the past and has never been justified.

Landlords are still allowed to ban or exclude anyone who is found to be manufacturing or selling drugs since drug related crimes are the only ones that are exempt under the Fair Housing Act.

Learn More

To learn more about the latest legislation affecting your rental property, or to speak with us about our property management services contact Goldenwest Management today by calling us at (602) 765-4750 or click here to connect with us online.

 

Investment Property Solutions
AZ LIC# CO583886000
CA LIC# 071791904
NV LIC# B1000408