Landlords on Wednesday publicly argued against a proposal to expand San Jose’s rent control law.
More than 30 rental property owners objected to City Councilman Raul Peralez’s plan, which would extend the reach of rent control in several ways.
Most alarming, his proposal would limit rent increases to 4 percent annually, half of the current 8 percent cap.
Some said this constraint would make it difficult to cover their own rising expenses. After all, no such caps are being proposed for utility bills, property repairs or city fees.
Richard Matthews pointed to the failure of rent control in San Francisco. Click here to listen to audio from the hearing.
The owners’ comments came during the City Council’s Rules and Open Government Committee meeting. The California Apartment Association had called on its members in Silicon Valley to attend the hearing and explain the downsides of rent control. The City Council also received hundreds of emails and letters from property owners.
Landlords described how rent control undermines efforts to lower housing prices because of its chilling effect on development.
Under the specter of rent control, construction dries up, demand stays high — and prices keep growing. Some at Wednesday’s meeting urged the council to instead focus on encouraging rental housing construction. Adding supply offers an economically proven way to bring down prices while addressing the area’s housing shortage.
Others reminded committee members of rent control’s woeful track record. San Francisco and New York have deep-rooted rent control programs — but also the highest rents in the nation.
Another part of Peralez’s proposal includes a just-cause eviction law. But requiring just cause can hinder a landlord’s ability to rid communities of dangerous tenants, such as suspected drug dealers.
At this point, the future of the proposal is in the hands of the city manager, and thanks to members of CAA, he has plenty to ponder.