Bill AB 1505 Poses Serious Threat To Landlord Rights

By DANIEL BORNSTEIN, ESQ.

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Although Bornstein Law has tenaciously protected the rights of property owners and landlords for over two decades and have weathered many cycles of the real estate market, this era seems to be particularly ominous for the rental business.

 

There has been a flurry of initiatives to weaken property owner rights lately. In this article, we reported on Alameda’s “just cause” eviction protections that narrowly passed, and this post addressed the unsuccessful bid to erode the Ellis Act, a law that gives landlords an exit strategy to leave the rental business. It seems that before the ink dries, we encounter yet another assault on property owner rights.

 

None more damning, however, than AB 1505, a proposed bill that will eliminate state law protections from the most extreme forms of rent control on privately owned and financed rental housing. If you are the cerebral type, you can read the unabridged version here, but let’s summarize its goals.

 

If passed, AB 1505 passes, local governments will have the fiat to:

 

Force developers and owners of rental property to reserve an unrestricted percentage of all newly constructed units as "inclusionary housing" units: below-market-rate (BMR) rental housing units that are rent and price controlled for 55 years or more.

Adopt "vacancy control" laws on all inclusionary housing units: local government power to prohibit rental property owners from bringing rents to market at the time a unit is re-rented.

Force owners and developers to shoulder the entire cost of producing and maintaining inclusionary housing units, which in turn will force owners to raise rents on all other tenants in order to stay in business.

Adopt price controls on inclusionary units without limitation, restriction, or oversight.

 

Given the Bay Area’s housing crisis, we believe that legislation is needed to encourage and incentivize the production of more rental housing units, not less. AB 1505, in our view, will only stunt the growth and development of rental housing and further compound the problem.

 

If you are a property owner, your voice can be heard by contacting your elected officials before June 7, 2017.

 

Simply call your State Senator, identify the city or county you live, and indicate that you own or manage residential property. If you are a member of the East Bay Rental Housing Association, please mention it.

 

Ask the legislator to vote NO on AB 1505 and thank the staff for their time.

 

In times like now, when there is some anti-owner sentiment among lawmakers, it is more important than ever to consult with competent Bay Area real estate attorneys that can provide aggressive legal advocacy.

As the founding attorney of Bornstein Law, Broker of Record for Bay Property Group and expert witness, Daniel Bornstein is a foremost and well-respected expert in landlord-tenant disputes and other property management issues with over 23 years of experience in handling real estate and civil litigation related disputes.

CONTACT BORNSTEIN LAW
415 409 7611

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