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

SLIDE 1

Rent Control, Rent Control, Affordable Housing, Affordable Housing, an and Unintended Consequences Unintended Consequences

PR PRESENTE TED BY TH THE ALB LBANY PR PROPE PERTY TY RIGHTS TS ADVOCATE TES

SLIDE 2

Flaws in the Flaws in the Commission Report Commission Report

SLIDE 3

1. L
1. Lack

ack of

f N

Not

tice an

ce and P Proces rocess

Com
mmissi

ssion

n made

e no

direc

ect effor effort to

infor

form apartmen ent ow

wner

ers s nor

r to
sol

solicit input fr from

m st

stakeh ehol

lder

ers s to

fr

frame e resea esearch and argumen ents. s.

Com
mmissi

ssion

n dem

emon

nst

strated ed a willingness ess to

op
per

erate e ou

utsi

side e of

f

impor

rtant st

statutes es inten ended ed to

en

ensu sure e due e proc

cess.

ess.

Com
mmissi

ssion

n is

s presen esenting an argumen ent for for immed ediate e action

n

ev even en while e acknow

wled

edging that it may req equire e su subst stantially mor

re

e st study.

Entire

e proc

cess

ess has s been een mism smanaged ed.

SLIDE 4

2. L
2. Lack

ack of

f Rel

Relevan evant an and S Support

rted

ed Dat Data

Misl

slea eading asser ssertion

n that med

edian ren ent in Albany is s $3,100/mon

nth.
Rec

ecom

mmen

endation

ns

s for for city-wide e ren ent con

ntrol
l wou
uld on
nly apply to
21.4%

% of

f hou
usi

sing units s (n (no

con
ndos
s or
r si

single-fa family hom

mes).

es).

St

Study offer

ffers

s no

indep

epen enden ent infor formation

n as

s to

what the

e med edian ren ent or

r aver

erage e annual ren ent increa ease se is. s.

Com
mmissi

ssion

n fa

fails s to

presen

esent st statist stics s which are e accurate e or

r

capable e of

f withst

standing ev even en cursor sory indep epen enden ent rev eview ew.

SLIDE 5

3. N
3. No Evi
Eviden

ence of ce of Em Emergen ergency S cy Stat atus

Enactmen

ent of

f a mor
rator
rium can on
nly be

e just stifi fied ed upon

n clea

ear and con

nvincing ev

eviden ence e of

f a true

e st state e of

f em

emer ergen ency.

Assu

ssumption

ns

s of

f the

e ex exist sten ence e of

f an em

emer ergen ency based sed upon

n fl

flawed ed st statist stical con

nclusi

sion

ns

s and a sm small number er of

f com
mplaints

s does

es

not

t crea

eate e an actual st state e of

f 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

nth based

sed upon

n 551 hou
usi

sing units s su survey eyed ed (op (opposed

sed to
the

e $3,100 per er mon

nth fi

figure e presen esented ed by the e Com

mmissi

ssion

n).

).

Cou
uncil has

s no

just

stifi fication

n for

for implem emen entation

n of
f any ren

ent mor

rator
rium or
r ot
ther

er prev even entative e mea easu sures es at this s time. e.

SLIDE 6

4.

4. Abs

Absen ence of ce of I Impact act S Study y

No
con
nsi

sider eration

n is

s bei eing presen esented ed as s to

whet

ether er or

r not
t the

e mea easu sures es as s prop

posed
sed wou
uld be

e effec effective. e.

Com
mmissi

ssion

n ignor
res

es the e pot

ten

ential for for neg egative e or

r uninten

ended ed con

nseq

sequen ences es resu esulting fr from

m ren

ent con

ntrol
l.
Befor

efore e it under ertakes es any action

n that will irrev

ever ersi sibly impact the e lives es of

f the

e citizen ens s of

f Albany, the

e Cou

uncil must

st bec ecom

me

e prop

per

erly infor formed ed of

f the

e under erlying issu ssues. es.

SLIDE 7

5. Mi
5. Mislead

eading Con g Concl clusion

ns
Th

The e rep epor

rt of
f the

e Com

mmissi

ssion

n includes

es a number er of

f 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

mmissi

ssion

n are

e not

t su

suffi fficien ently dev evel elop

ped

ed for for the e Cou

uncil to
con
nsi

sider er any pol

licy action
n.
Th

The e Cou

uncil sh

shou

uld mandate

e that this s rev eview ew proc

cess

ess be e

v
ver

erhauled ed and rec ecom

mmen

enced ed under er the e direc ection

n of
f

st stakeh ehol

lder

ers s with approp

priate

e ex exper erien ence e to

com
mplet

ete e an

b
bjec

ective e and prop

per

erly fou founded ed st study.

SLIDE 8

Real Considerations and Real Considerations and Arguments Arguments

SLIDE 9

1. The Econ

e Econom

mics

cs of

f Ren

Rent Con Control rol

If f ren ent con

ntrol
l is

s implem emen ented ed, including any for form of

f mor
rator
rium
r
r just

st cause se ev eviction

ns,

s, a number er of

f unanticipated

ed and undesi esirable e issu ssues es are e likel ely to

arise:

se:

Drop
pping prop
per

erty values es and tax rev even enues es

Red

educed ed invest estmen ents s in new ew hou

usi

sing dev evel elop

pmen

ent

Disi

sincen entive e to

maintain prop
per

erties es and per erfor form upkeep eep

La

Lack of

f resi

esiden ential bea eautifi fication

n proj
jec

ects

Dec

eclining loc

cal diver

ersi sity and red educed ed hou

usi

sing availability

Loss

Loss of

f rec

ecou

urse

se for for unwanted ed ten enancies es

SLIDE 10

2. The S

e Soci

cial

al As Aspect ects of

f Ren

Rent Con Control rol

Ren

ent con

ntrol
l si

signifi ficantly increa eases ses landlor

rd-ten

enant rel elated ed litigation

n.
Sm

Small-time e prop

per

erty ow

wner

ers s who

ow
wn on
ne

e or

r two
prop
per

erties es are e

ft
ften

en for forced ed ou

ut of
f the

e market et due e to

ren

ent con

ntrol
l.
Under

er ren ent con

ntrol
l, prop
per

erty ow

wner

ers s are e less ess likel ely to

maintain

thei eir prop

per

erties, es, which may lea ead to

increa

eased sed landlor

rd-ten

enant host

stility.
Con
nver

ersel sely, in the e absen sence e of

f ren

ent con

ntrol
l, prop
per

erty ow

wner

ers s ten end to

dev

evot

te

e mor

re

e time e and effor effort to

en

ensu suring that thei eir prop

per

erties es are e maintained ed.

SLIDE 11

Al Alban bany H y Hou

using U

g Units ( (U.S .S. Cen . Census 2010) 2010)

Hous Housing ng Un Unit its Subj ubject to ect to Rent Control Rent Control Not S

t Subj

ubject ect to to Rent Control Rent Control Single Family 4,295 UC Village 974 Condos on Pierce Street 825 Condos not on Pierce Street 61 Apartments 1,678 Totals 1,678 6,155 Percentage 21.4% 78.6%

SLIDE 12

Ren Rent S Survey rvey

Hous Housing ng Un Unit it Bui Building 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

Ren ent su survey ey of

f 1, 2, and 3 bed

edroom

om units

s and st studios

s in Albany,

with ren ents s as s of

f Sep

Septem ember er 1, 2016. A tot

tal of
f 551 hou
usi

sing units s are e included ed in the e su survey ey bel elow

w:

Th The e aver erage e ren ent in Albany is s $1,637 per er mon

nth for

for the e 551 hou

usi

sing units s included ed in the e su survey ey.

SLIDE 13

Looking Forward Looking Forward

SLIDE 14

1. Al

Altern ernat ative S ve Sol

lution
ns /

/ A Bet Better er Ap Approach roach

Su

Suppor

rt for

for the e affor ffordable e hou

usi

sing bon

nd (Pr

(Prop

posi
sition
n A1).

).

Pu

Public su subsi sidies es for for building improv

vem

emen ents s available e to

landlor
rds

s who

maintain bel

elow

w 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

me-sh

share e adver ertisem semen ents. s.

Incen

entives es for for bot

th landlor
rds

s and ten enants s who

en

enter er into

multi-

yea ear lea eases. ses.

Crea

eation

n of
f an affor

ffordable e hou

usi

sing resou esource e cen enter er for for ten enants. s.

SLIDE 15

2. Con

Concl cluding Rem g Remark arks

Albany sh

shou

uld not
t want to
bec

ecom

me

e Ber erkel eley ey.

Ren

ent con

ntrol
l does
es not
t address

ess the e lack of

f affor

ffordable e hou

usi

sing.

Ren

ent con

ntrol
l ser

serves es as s a disi sincen entive e to

maintain and build new

ew prop

per

erties es and fu further er red educes es the e su supply of

f prop
per

erty on

n the

e market et.

Ser

Seriou

us

s effor efforts s sh shou

uld be

e made e to

build mor
re

e affor ffordable e hou

usi

sing.

Albany is

s a closel

sely knit and prog
gressi

essive e city and we e fi firmly bel eliev eve e that we e can wor

rk tog
get

ether er to

make

e crea eative e and prog

gressi

essive e sol solution

ns

s a rea eality.

SLIDE 16

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