The California Apartment Association reports a new legislative proposal using COVID-19 as the reason, would force every rental property owner in California to reduce rents by 25%.
AB 828 by Assemblyman Phil Ting (D-San Francisco) is a gut and amend bill, using the government-created crisis as an opportunity to erode property rights in California.
“AB 828 by Assemblyman Phil Ting ignores the robust rent and eviction controls already in place statewide. It provides no assurances that landlords can collect rent, remove problem tenants, or get a fair hearing in the court system.”
AB 828 denies equal justice to housing providers by:
- Forcing landlords to reduce rents by 25% — even if a tenant cannot show a COVID-19 hardship or need.
- Allowing the courts to set rents and change rental agreements already in place.
- Assuming every tenant is facing a COVID-19 hardship and must be compensated for it.
- Protecting nuisance tenants. The bill does not require tenants to answer an unlawful detainer complaint.
- Mandating that rental property owners demonstrate an economic hardship to collect the contracted rent.
This gross violation of private property rights “is an unfair attempt to allow the government and the courts to give reduced rent to all tenants even if they have face no economic hardship, and it provides safeguards for landlords.”
The CAA response sums it up correctly:
“In Violation of the State and Federal Constitution, AB 828 Forces a 25 Percent Reduction in Rents – In our current pandemic, after property owners have gone months without rent, AB 828 takes away additional rent owed by the tenant by requiring the courts to impair existing contractual obligations, in violation of the state and federal constitution, and mandate a rent reduction of 25 percent. We must remember that owners are already facing the following: a statewide halt on evictions of all types; a state of emergency that caps rents; local measures that freeze rents and provide extended deferrals of unpaid rent; and state and local rent control laws that, in some cases for years, have limited rent increases to less than inflation. Small property owners, owners in strict rent control jurisdictions, and owners who offer affordable housing will be especially harmed by this rent reduction. And it’s important to note that, in general, many owners have already voluntarily forgiven or reduced rent because of this crisis.”
“AB 828 is a ruse when it comes to foreclosures or any assistance to the owners it burdens.”
Read the letter CA Apartment Association sent to Assemblyman Ting.
View Comments (61)
I am OK if the cost of :
my mortgage
my property taxes
my insurance
any repair service
my gardener
is reduced by 25%
Fair is fair!!!
Agreed. These actions will cause the entire property market to go down. Since I'm not a renter and own my own home, I could handle my property taxes going down 25%.
Actually, Michael, it would cause your property taxes to go up. The flood of apartment buildings that would be placed in foreclosure would drastically reduce the value of apartments, but not single family residences. The county and the state will still want to get their money from somewhere so they would seek a bond to cover costs. They'll say it's for the schools so voters will vote on it. Up go your taxes, without any increase to values.
YES. drop the cost of living in Kalyfornia by that amount and I MIGHT move back. Otherwise, Gel Hair and his thugs are simply destroying property rights and they have no authority to do that with a law. Put all the property up for sale and evict the renters..So there !~!!
Make it all condos' that the renters can then BUY !!! at market prices.
It's all greed plain and simple! a person who makes 70K a year cannot even qualify for an apartment, someone that works hard everyday! These apartments are 700 to 800 square feet. Lewis Property Management used to be reasonable in Inland Empire, now they have gone up over $1300 in less than a year. $3100 for a 700 square foot 1 bedroom apartment is ridiculous. Not to mention Long Beach and surrounding areas. It's Greed! Some 2 bedroom tiny apartments 4k. What rights are being violated? Making property owners be reasonable? So hardworking people can have a roof over their heads? Something needs to be done!!!!1/2 of people's salaries spent on rent? Please...
Strongly agree with you Alin Bali. Don’t forget the water bill.
I am a disabled veteran on a very limited service connected disability and mu landlord raised my rent in July 2019 10% and is now raising it again during the pandemic another 10%. My landlord is trying to profit off of the pandemic and natural disasters by charging Bay Area rental prices in rural Mendocino county her justification was she wants her rentals to be equal to San Fran and Bay Area counties she is a slum lord just like jerod Kushner these types of slumlords should be fined and the press should put up there pictures and identify there greed. I support a 25 % percent reduction
LOS ANGELES RENTS HAS GONE UP 65% (national average is 36%) IN LAST 10 YEARS.
Totally support 25% rent deductions under AB 828 for the following reasons:
1. Lowest interest rate in 50 years.
2. The average effective property tax rate in California is only 0.77%. (prop. 13)
3. Low labor cost (undocumented workers)
4. CA is among the highest rents in USA
5. Low utility cost (Mild California weather).
All these are benefiting the landlords.
Results: VERY VERY rich landlords!
Tenants suffer!
You forget a lot of first generation landlords mostly are losing money for there properties. Mortgages are more expensive then your rent typically. Less maintenance, months of no tenents, income is taxed. The list goes on.
1. Most landlords already have a very low interest rate
2. Tax rate is already factired in rent price
3.you are encourage illegal activity
4.everyone in the world wants to live in California's high rent comes with a high mortgage payment + insurance + taxes + money for repairs.
5. Many renters pay their own utilities.
I agree with you, Mike. California rent and home payments are unnecessarily high. Families suffer the most from this. We can’t afford a 3 bedroom to live in LA, but my husband works there. So I live in another state with our kids, while my husband travels home once a month for a weekend to visit us. It is really hard on our family, and we want to live together again. But we can’t until our income increases substantially- and we’ve been working toward this for years. My husband is in the film industry... so him finding work in another state is very unlikely- though we have tried numerous times. California housing has gone out of control and is abusing the citizens of the state. It is unfair and unjust. This is the point where the government needs to step in and protect the people from an abusive industry.
And I don’t understand why Katy Grimes is salty about the regulations being put on landlords in the middle of a horrific world pandemic and severe economic crisis. Our nation is suffering. People are jobless. You want them to be homeless too! You state “most” of the landlords are waiving rent. But right now risk of ending up without a place to live is severely high, people need protection and shelter. We need to protect more than just some of our citizens. California isn’t “taking advantage” of this opportunity to set you all in line. This should have been done a long time ago. It’s seriously just the last straw and somebody finally decided to take a stand. Landlords are ruining economic possibilities for families in California, and I seriously don’t know why it took them this long to step in and stop the financial abuse!
Sorry for my frustration... it’s just that this author is painting everything in such a self serving light. Residing California are suffering. Take a step back and look at the whole picture.
If you don’t want to pay rent buy a place.
I am assuming you are one of those realtors/ landlords complaining about this reduction. Well same logic, if these investment doesnt make sense then dont buy a property and expect income.
I'm a tenant and I would agree with this bill if everything is lowered by 25%, including property taxes for the rental properties, mortgage, state congress/assembly salaries and expenditure... Ting should set example to cut his own salary by 25%.
no one is waiving rent and when you ask for a discount they say leave, it will drop like NYC once evictions start, then these greedy landlords will wished they did work with the tenants
Yup. And most people complains are the realtors that make the house prices so high now they dig themself into this hole and it will get bigger for them
Mike, as an example of how your idea's are misguided. I own a house (that I rent it to tenants), I break-even on the rent, only if I don't have any maintenance or repairs and have no vacancies for the entire year. If I do have either, then I have a yearly loss. If I have to reduce the rent by 25%, I will be losing 25% or more per month. In addition, since I can't have positive rental cash-flow with my existing mortgage, I will not be able to sell the house for enough to cover my existing mortgage. It's just loss complied upon loss. I know many people in the same situation.
Absolutely... They go up on rent because they can. Rent increases every year. Pricing people/forcing them out of their homes because they cannot afford rent any longer. Then have the nerve (although this hasn't happened to me) wonder why these good paying tenants stay and fight against them for evictions when rent renewal time comes around because they do not want to be homeless. In California you have to make 3 times the rent. If rent is $3200 a year, I know a lot of single/divorced women who aren't making $9,600 a month. Or maybe even couples. My daughter is a nursing student, her and three friends can't even afford to get their own apartment! THE GREED MUST STOP!
I like your suggestions. You work hard, manage credit, buy property and then in return you don’t get anything but you have to reduce your rent on the property you loosing couple hundred.
Well said, Alain. I agree with you except that it would also reduce your bottom line by 25%, and even that is not fair. You provide 100% of the service you contracted to provide, you deserve contracted compensation.
I will be happy to reduce my tenants’ rents but they have to reduce property taxes and utilities as well
This is very "Trumpian baloney". Ting knows this is d.o.a., and likely will not get out of committee.
The question: what does he really want?..It is maddening that even with the world dealing with Covid 19.... that Ting would resort to this type of chicanery.
It’s a long time goal to make apartments public housing by draconian rent control, rent strikes, liberal landlord/tenant laws.
Generally , after wars and highly disruptive economic times social welfare/justice advances are aggressively proposed....the latest round are Green New Deal, Guaranteed Minimum Monthly Income, Living Wage for any job, iron clad shutdown of independent contractors, free college, open borders, neutering law enforcement.
You’re about to see amazing change attempts in states by radical governors eroding property rights, private contracts, police protection, health/welfare, religious beliefs, private education.
Tenants are not the only ones suffering from COVID 19. The property owners are also victims of COVID 19. How can they take from one victim to help the other victim. The tenants have an option to move to a smaller home if they can't afford the rent, but the owners are stuck with the mortgage amount. Mortgage companies are only giving mortgage relief for 3 months. On the 4th month, most of them are demanding 4 months mortgage. They don't want to look out for the owners, but want to protect the tenants.
Landlords should then consider getting a real job instead of exploiting their tenants to pay for their mortgages and lifestyles :) Grocery stores are in need of assistance right now. Nobody is forcing landlords to hoard excess property.
shame on you freeloader
Exactly. I am landlord too but most these people complaining are realtors the real estate prices and now their investment is not making as much.
Hahaha I totally agree. Its amazing how entitled some feel to money. I invest in the stock market... I earned the money I put in there just like most landlords worked for their rental properties. If the stock market goes down, I lose money but it would be super dumb of me to rely solely on my investments as income... because that’s not how life works.
Just another reason why I have purchased property out of state and I am planning my exodus. Even though this thing is DOA, if you throw enough ???? at the wall, eventually some of it sticks!
That's why some refer to this state as Commiefornia.
I am a tenant living in Los Angeles and I believe it's only fair that they lower it by 25% but if you're going to go and do that yes and I believe that the owners of the property should get a 25% lower on their mortgage or whatever their paying everyone struggling right now
Sonnya,
Banks are not going to say, "Gee that was nice of you to lower rents, we will reduce your debt by 25%" That's not in the bill and banks don't give money away. And believe me, the county and state are not going to lower property taxes and water bills! FYI most property owners work on a profit margin far below 25%, some as low as 4%. With a 25% reduction in revenue, owners would have a NEGATIVE income, not a 25% reduction of income. So, how is this "fair"? I have always helped any tenant who was having a hard time but bills like this make me lose the love. They also worsen the housing shortage because no one will want to invest in apartments anymore. As a renter in L.A. you should give that some thought.
AB-828 sends “Ting”les down my spine as radical elected representatives with no regard for the U.S. Constitution continue to abuse and violate their “Oath of Office”. Obviously Assemblyman Tingles doesn’t “Recall” putting his hand on a bible and swearing to uphold the U.S. Constitution...he’s probable never even read it...now he needs to be “Recalled” for disregarding the “Law of the land”. Maybe the Pacific Legal Foundation could send him a pocket constitution so after his “Recall” he will have plenty of time to read it! BTW...Thanks Assemblyman Tingles for helping to wake the people up. We needed this!!!
Well, that is a great question to put to Sleepy Joe Biden.
Only a fool would consider building any new rental housing in this State.