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Santa Cruz, California, Measure M, Rent Control Charter Amendment (November 2018)

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Local ballot measure elections in 2018
Measure M: Santa Cruz Rent Control Charter Amendment
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The basics
Election date:
November 6, 2018
Status:
Defeatedd Defeated
Topic:
Local rent control
Related articles
Local rent control on the ballot
November 6, 2018 ballot measures in California
Santa Cruz County, California ballot measures
Local property on the ballot
See also
Santa Cruz, California

A citizen initiative designed to amend the city charter to establish a rent board and to enact local rent control was on the ballot for Santa Cruz voters in Santa Cruz County, California, on November 6, 2018. It was defeated.

A yes vote was a vote in favor of amending the city charter to establish a rent board to enact rent control and eviction limitations in the city.
A no vote was a vote against amending the city charter to establish a rent board to enact rent control and eviction limitations in the city.

Election results

Santa Cruz, California, Measure M, Rent Control Charter Amendment (November 2018)

Result Votes Percentage
Yes 11,609 38.41%

Defeated No

18,611 61.59%
Results are officially certified.
Source

Text of measure

Ballot question

The ballot question was as follows:[1]

“

Shall the City Charter be amended to enact rent control and just cause eviction regulations on residential rentals in the City of Santa Cruz, with exceptions under State Law, to be governed by a separately elected and autonomous rent board, with independent authority to set rents, fees, and penalties, and appoint an executive director, legal counsel and staff to oversee implementation, administration, and enforcement of the rent control and just cause eviction regulations?[2]

”

Ballot title and summary

The ballot title and summary for Measure M were as follows:[3]

“

Ballot Title: A proposed Amendment to the Santa Cruz City Charter establishing residential rent control and just cause eviction requirements in the City of Santa Cruz, to be governed by a separately elected Rent Board.

Summary: This measure proposes an Amendment to the City Charter to establish rent control and just cause eviction requirements for the City of Santa Cruz. Under current State law, single-family residences, condominiums, and all residences constructed after 1995 would be exempt from the new rent control provisions. The just cause eviction restrictions would apply to most residential rentals, including single-family residences and condominiums, with certain exceptions, including transient occupancies, hospitals and similar group home facilities, and room rentals if a tenant shares the landlord’s kitchen and bath facilities. Both rent control and just cause eviction restrictions would apply to accessory dwelling units. A landlord who violates the new Amendment could be liable in a civil action for damages, civil penalties, and attorneys’ fees and costs, and could also be subject to criminal prosecution.

Rent Board Autonomy. The current Charter vests in the City Council the authority to exercise all powers granted to charter cities under State and Federal Constitutions and laws. This Amendment would vest broad authority for implementation and administration of this new City law in a separately elected Rent Board, to function independently of the City Council, City Manager and City Attorney, with full authority to: establish Rent Board member compensation, hire a paid executive director and staff; retain attorneys; procure goods and services, hire hearing officers and housing counselors; and initiate, defend and intervene in lawsuits. After receiving initial City funding, the Article authorizes the Rent Board to impose annual rental housing fees upon landlords to pay the costs of administration and implementation; however, the Rent Board would also be empowered to “request and receive” funding from the City General Fund to cover its expenses, if deemed necessary by the Rent Board.

Rent Control: The measure would set maximum annual rent increases for residential units subject to rent control at 100% of the percentage increase in the Consumer Price Index for the prior year, with provisions for adjustment up or down by petition to the Rent Board, as specified. Rent Board decisions on such a petition could be challenged in court. Landlords would retain the right to set the initial rent for new tenants under current State law.

Just Cause Eviction. The measure would prohibit landlords from evicting tenants except for certain specified reasons, including if: (1) the tenant fails to pay rent; breaches the lease; commits or permits a nuisance; fails to give the landlord access to the premises in certain situations; or (2) the landlord needs to undertake substantial repairs to the unit; seeks to use the unit as a primary residence by the landlord, or the landlord’s family members; or seeks to withdraw all units of an entire property from the rental market. Tenants evicted for reasons unrelated to a tenant’s conduct would be entitled to a minimum of six months’ relocation assistance. [2]

”
—Title and Summary

Impartial analysis

The following impartial analysis was prepared by the office of the Santa Cruz City Attorney:[4]

“

Introduction. This Measure was placed on the ballot by an initiative petition signed by a legally sufficient number of registered voters in the City. It proposes a City Charter Amendment (“Amendment”) to establish a rent board, rent control and just cause eviction requirements for the City of Santa Cruz.

Rent Board Autonomy. This Amendment provides for creation of a separately elected Rent Board with broad authority for implementation and administration, to function independently of the City Council, City Manager and City Attorney. The Rent Board would be authorized to: establish Rent Board Member compensation; hire paid executive director and staff; retain counsel; procure goods and services; hire hearing officers; adopt budgets; and initiate, defend and intervene in lawsuits. After receiving initial City funding, it empowers the Rent Board to annually bill residential landlords to pay for administration, implementation and enforcement costs, and to request and receive funding from the City General Fund.

Rent Control. The Amendment would set maximum annual rent increases for residential units subject to the rent control at 100% of the percentage increase in the Consumer Price Index for the prior year, with initial maximum base rent at the amount of rent in effect on October 19, 2017, and provisions for adjustment up or down by the Rent Board as specified. Both rent control and just cause eviction restrictions would apply to accessory dwelling units. A statewide measure that has also qualified for the November 2018 ballot seeks to repeal current State law exempting single‐family residences, condominiums, and residences constructed after February 1995 from local rent control restrictions, and enabling landlords to set the initial rent for new tenants. Its passage would enable the Rent Board to apply rent control to these types of tenancies, and to adopt regulations restricting initial rent for new tenancies as well.

Just Cause Eviction. The Measure would prohibit landlords from evicting tenants except for certain specified reasons, including failure to pay rent, committing or permitting a nuisance, or to enable the landlord to use the unit as a primary residence. Tenants evicted for reasons unrelated to the tenant’s conduct would be entitled to the equivalent of six months’ relocation assistance.

Violations. A landlord’s violation of the Amendment’s requirements would be punishable as a misdemeanor, and would also give rise to liability in a civil action, which could result in money damages, injunctive relief, reasonable attorneys’ fees and costs, and civil penalties.

Effect of Measure. The Measure would amend the City Charter to impose rent control, establish a rent board, and to establish limits on evictions. As a Charter Amendment, it could not be repealed or amended absent voter approval. A “Yes” vote is a vote to approve rent control, a rent board, and limits on evictions. A “No” vote is a vote against rent control, a rent board, and limits on evictions.

The above statement is an impartial analysis of the proposed rent control/just cause eviction measure.[2]

”
—Santa Cruz City Attorney

Full text

The full text of the measure is available here.

Support

Proponents

The following individuals signed the official argument in favor of Measure M:[5]

  • Robert Cavooris
  • Paula Mack
  • Thao Le
  • David G. Sweet
  • Viveka Jagadeesan
link = https://santacruzrentcontrol.org/rent-control-act/

The Movement for Housing Justice led the campaign in support of Measure M.[6]

Arguments

The following official argument was submitted in favor of Measure M:[7]

“

Vote YES on Measure “M” to protect Santa Cruz from the biggest threat facing our community: skyrocketing rents. Exorbitant rents are driving out valued teachers, working families, and long-time Santa Cruz residents.

Measure “M” makes housing costs predictable and stable, freeing seniors and families from constant fear of losing their homes. Rents have skyrocketed 46% in the last 4 years while wages have inched up only 8%. Young people cannot afford to stay in the city where they grew up. As we lose beloved family and community members, we lose Santa Cruz's quality of life.

To landlords who keep rents reasonable, thank you! Vote YES on Measure “M” to stop predatory rent increases and unjust evictions by others.

A YES vote on Measure “M” will:

  • Protect over 36,000 renters;
  • Allow annual rent increases pegged to inflation (1.2% to 3.6% over the last decade);
  • Guarantee landlords a fair return on their investment with the option to petition for a rent adjustment if they are suffering financially;
  • Limit evictions to specific situations (unpaid rent, illegal activity, etc.), preventing evictions just to raise rents;
  • Protect families too intimidated to report unsafe conditions for fear of retaliatory evictions;
  • Always allow owners to move back into their homes or take them off the market. The upheaval of such unanticipated displacement on the tenant is balanced by the landlord's responsibility to pay a relocation fee consistent with the cost of finding new housing;
  • Roll rents back to October 2017 levels
  • Create an independent Rent Board - directly elected by and answerable to the voters - to administer the law;
  • No cost to the city beyond initial loan and fully funded by small per unit fee paid by landlords.

Join teachers, long-term residents, nurses, landlords, retirees, homeowners and young people in voting YES on Measure “M”.[2]

”
—Official Support Argument

The Movement for Housing Justice made the following argument in support of Measure M:[6]

“

Rents have risen 52% in the last 4 years, the highest rate in CA. Teachers, nurses, and the workers that make the city run are driven from their homes. Displaced workers are forced to commute further, adding to traffic and pollution.

We need rent control now to make sure that Santa Cruz is a community for all of us![2]

”
—Movement for Housing Justice

Opposition

Opponents

The following individuals signed the official argument in opposition to Measure M:[8]

  • Neal Coonerty
  • Keshav Kumar
  • Pamela Comstock
  • Andy Hartmann
Link = https://www.santacruztogether.com/

Santa Cruz Together led the campaign in opposition to Measure M.[9]

Arguments

The following official argument was submitted in opposition to Measure M:[10]

“

Vote NO on Measure M it is an extreme and costly measure that will divide our community and hurt renters.

Measure M Establishes an Expensive and Unaccountable Bureaucracy

Measure M creates a Rent Board that will waste millions on bureaucracy and reduce the City General Fund that supports parks, libraries, and essential services. This tribunal sets their own salaries and budget; creates new rules, fees, and penalties; and hires unlimited staff without legal or financial oversight.

Measure M Makes Our Housing Shortage Worse

Many owners will sell rentals rather than lose control of them. End-dates of rental agreements will become invalid, including single-family homes and Accessory Dwelling Units. Renters can move in subletters without permission or background checks. When sold, the wealthy will purchase these rentals for their own use or second homes, reducing our rental housing supply.

Measure M Makes it Harder to Find Rentals

95% of economists agree rent control does not work. Every city with rent control loses rent-controlled housing. Working families, teachers, and seniors will find it harder and more expensive to find rentals.

Measure M Endangers Community Safety and Well-Being

Measure M makes eviction of problem renters and housemates nearly impossible, threatening community safety and neighborhood peace. It eliminates using the end Of rental agreements to protect neighborhoods.

Measure M Limits Homeowner Rights

Homeowners who rent out their home temporarily will find their ability to move back in severely limited since they must pay a minimum of six months rent to tenants. In certain situations, homeowners cannot move back into their home ever.

Measure M is NOT the Solution

With widespread community participation we can create affordable housing solutions. A Broad Coalition of Renters, Students, Retirees, Homeowners, and Community Leaders urges you to Vote NO on Measure M.[2]

”
—Official Opposition Argument

Santa Cruz Together made the following argument in oppostion to Measure M:[9]

“

Who Loses?

The vast majority. Dramatically fewer rentals will be available and gentrification will be accelerated. The end-date of rental contracts will be null and void for both leases and month-to-month agreements. Ordinary homeowners can lose control over their own homes. Neighborhoods will be damaged, since housing providers will no longer be able to take significant action to manage extra-large households, disabled vehicles, excessive noise, traffic, or even drug-dealing. Overall rents will climb higher due to scarcity. Homelessness will increase. The quality of neighborhoods will degrade.[2]

”
—Santa Cruz Together

Local rent control ballot measures, 2016–2018

Between 2016 and 2018, there were 16 local ballot measures to expand or increase rent control in 13 jurisdictions in California. Seven of the proposals were approved, and nine of the proposals were defeated. Measures varied in the proposed base rents, maximum allowed annual increase in rents, and causes for tenant termination.

The passage of California Proposition 10 on November 6, 2018, could have had the effect of expanding rent control in cities where the Costa-Hawkins Rental Housing Act, rather than a municipal ordinance, defined the limits on rent control.

The following table provides a list of local ballot measures related to rent control in California:

Note: Click "show" to expand the table.

Path to the ballot

See also: Laws governing local ballot measures in California

This measure was put on the ballot through a successful citizen initiative campaign led by the Movement for Housing Justice. The group needed to collect 5,700 valid signatures. The Santa Cruz City Council voted unanimously (7-0) on June 26, 2018, to send Measure M to the November 2018 ballot.[1][11]

See also

External links

Footnotes

  1. ↑ 1.0 1.1 County of Santa Cruz, "Local Measures on the November 6, 2018 Ballot," accessed August 14, 2018
  2. ↑ 2.0 2.1 2.2 2.3 2.4 2.5 2.6 Note: This text is quoted verbatim from the original source. Any inconsistencies are attributable to the original source.
  3. ↑ County of Santa Cruz, "Title and Summary," accessed August 21, 2018
  4. ↑ City of Santa Cruz, "Impartial Analysis," accessed August 21, 2018
  5. ↑ City of Santa Cruz, "Argument in Favor," accessed August 21, 2018
  6. ↑ 6.0 6.1 Santa Cruz Rent Control, "Home," accessed August 21, 2018
  7. ↑ City of Santa Cruz, "Official Support Argument," accessed August 21, 2018
  8. ↑ City of Santa Cruz, "Argument in Oppostion," accessed August 21, 2018
  9. ↑ 9.0 9.1 Santa Cruz Together, "Home," accessed August 21, 2018
  10. ↑ City of Santa Cruz, "Official Opposition Argument," accessed August 21, 2018
  11. ↑ Santa Cruz Sentinel, "Santa Cruz rent control campaign hits signature goal," May 6, 2018
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