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Government Intervention is Wrong! Open Letter to Jan Perry – by Michael Millman, Esq.

Posted on 01. Jan, 2018 by in all

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Dear Ms. Perry:

Thank you for your excellent leadership in connection with promoting affordable housing and opportunities for small family-owned apartment owners to continue to operate within the City of Los Angeles.

As you’re certainly aware, having served for many years on the Los Angeles City Council “Housing Committee”, many of your friends do not believe that the current Rent Stabilization program is fair.  For example: 

  • The cost of water, sewage and trash has probably gone up 200% or more and yet the annual rental increase is not greater than 3%. This is unfair.
  • The earthquake retrofit does not pass-through sufficient money to underwrite the program.  This is unfair.

Trash Hauling Illegal Monopoly

Our good friend, Maria Helena Durazo and LAANE obtained strong City Council support six years ago.  Councilmember Bernard Parks and Councilmember Jan Perry voted against the program.  We believe that the Council incorrectly structured the redistricting.  Very disappointing.

AB 1506

Apartment owners want industry leaders to oppose Assemblyperson Richard Bloom’s Santa Monica recent Bill, AB 1506.  This Bill would eliminate and destroy all protections for apartment owners as it seeks to repeal the protections extended in the Costa-Hawkins Fair Housing Act, 1995.

This Bill would attempt to permit many cities throughout the state the opportunity to roll back rents by five years and when a rental unit becomes vacant, allow the Rent Boards to set the allowable rent.  Rent Control would be extended to new construction, condominiums, granny flats and single family dwellings.  Everyone would register.

Rent Control Defies Basic Economics

Most recently, the Sunday edition, September 17, 2017 of the Los Angeles Daily News Opinion section on page 22 provided “Rent Control Defies Basic Economics stating “…making housing …less profitable …lawmakers reduce the incentive to create more housing.  In the first place, rent control also diminishes the quality of housing since landlords have less money left over to devote to repairs and less incentive to do so given the artificially high demand for their units”.

Some current County Supervisors have indicated that they would never initiate any form of rent control in the County of Los Angeles believing that the state laws involving Costa-Hawkins, Proposition 13, the Ellis Act and the Petris Act would not make county rent control realistic or viable.

Government Subsidies

We believe that the only option is government subsidies – let rent burdened tenants who have a legitimate hardship apply to their County Healthy Department and obtain a rental voucher.  Present the voucher to the apartment owner and make the arrangements.

Government intervention is wrong.  Density bonus arrangements are terrific, as long as they are voluntary.

[Editor’s Note:  Jan Perry is running for County Supervisor and she will support property owners.]

 

Michael Millman is an Attorney and a Mar Vista activist and can be reached at (310) 477-1201.