City Council Repeals Rent Control Ordinance

Richmond’s rent control and just cause for eviction ordinance was repealed Tuesday by City Council in a unanimous vote after a petition suspended it in September. A signature-gathering effort -- supported by the California Apartment Association, among others -- halted the policy on Sept. 3, a day before it was slated to take effect.

Richmond was on track to be the first city in California to establish rent control in more than three decades after the ordinance was approved in August. The policy was tentatively suspended with the introduction of the petition and then was officially put on hold when the city clerk’s office announced that enough of its signatures were valid. The paused legislation was sent to the council, who also had an option to put it on the November 2016 ballot or hold a special election in June. They chose to repeal it instead.

The ordinance capped rents in Richmond to annual increases of no more than 100 percent of the Consumer Price Index. It also included a portion that aimed to replace the current eviction system where landlords only need to give notice, not a reason, for eviction.

Mayor Tom Butt, who was against it, said in a statement that he expects the supporters of the ordinance want something “even more draconian.” He presumed there would be a petition drive for a ballot measure beginning sometime in the next few months.

“Advocates for rent control apparently believe they have a better chance of passing a rent control ballot measure that starts as an initiative than defending a ballot measure described as a repeal,” he said.

During Tuesday’s meeting, Councilwoman Gayle McLaughlin, who supports the ordinance but joined the repeal vote, confirmed she was continuing talks with rent control advocates.

“We’re still in the process of meeting and coming up with next steps,” she said. A Richmond renter who said her rent has risen more than 20 percent in the past two years voiced support for the ordinance during a public comment session prior to the vote. There was just one other speaker, who called the ordinance “another cockamamie scheme” by McLaughlin. The council repealed the ordinance within minutes.

“It was eerie to see the year’s hottest and most divisive local political issue die virtually alone -- with only two public speakers, no speeches from City Council members, no rallies, no T-shirts, no demonstrations and no fanfare,” Butt said.

The California Apartment Association, which backed the petition that led to the policy being overturned, welcomed Richmond’s decision today. Tom Bannon, the association’s chief executive officer, said the ordinance would have created negative consequences for the city’s housing stock and financial stability.

“CAA quickly launched the referendum push so that the city and community would have more time to examine the long-term impacts and unintended consequences that rent control brings,” he said. Back in September, Councilmember Jovanka Beckles questioned the petition. She said it was introduced as a way to delay fair protections for residents and to create a period in which apartment owners could “evict people and double or triple the rent.”

The association’s officials said they recognize the region’s housing challenges, but they contend the ordinance wouldn’t have done anything to make housing more affordable. “

As always, CAA looks forward to working with Richmond’s City Council and staff to pursue sensible measures for providing housing to residents of all income levels,” said Joshua Howard, senior vice president of local public affairs for the association.

By Bay City News

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