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Rent control is a violation of our property rights; we are pushing back!
THE PRESIDENT'S MESSAGE
Rent control is a violation of our property rights iterated in both the California and United States Constitutions. It is legalized theft. Forbes Magazine called it "one of the 10 worst economic ideas of the 20th Century." Our members suffer from losses during the pandemic just as other businesses do. Yet, instead of receiving kudos and rewards for our longevity—our "Legacy Businesses"— we receive condemnation, taxation, and penalties.
In August, for example, we received a heartbreaking e-mail from a member whose renter earned too much to qualify for COVID rental assistance but who continued to refuse to pay rent. Finally, she was able to regain possession of her property by signing an agreement not to pursue any money owed her during the tenancy. "Upon regaining possession of my property, I found that my tenant had done tons of structural work to the house (e.g., turning a 2-bedroom basement into four bedrooms and two kitchens so that he could lease the basement out to several people). I ended up spending over $70,000 to restore the house to its original state." Yet, one of our elected Assemblymembers, Matt Haney, wants to discourage the existence of rentals by introducing AB 12, which would limit deposits on rentals to one month's rent.
We're pushing back
Our CalRHA lobbyists are using our stories to present housing providers' perspectives. In addition, as you'll read in this issue, we've signed on to three amicus briefs that support our positions. We have filed a lawsuit against the ridiculous Prop. M that taxes owners with vacant units. We're waiting with bated breath for positive news about the possibility of the U.S. Supreme Court hearing a suit filed by two property owner groups in New York. We have asked various San Francisco Supervisors to address our meetings about their positions on our businesses. Only one, Supervisor Ahsha Safai, has actually talked to us, and Joel Engardio has promised to attend a future meeting. We hope that other supervisors such as Matt Dorsey and Rafael Mandelman will also accept our invitations in the future. D3 Supervisor Aaron Peskin, a housing provider himself, flatly rejected us.
Recently, as I was walking along Union Street and thinking about the dramatic changes that have occurred in the retail sector, demonstrated by the preponderance of hands-on businesses such as hair salons and pet grooming shops, I encountered former Supervisor Katy Tang, who was walking with leaders of the street's business community. Katy is now director of the San Francisco Office of Small Business. She introduced me to Iris Lee, who mentioned a new program designed to help property owners with vacant storefronts. They'll be guest speakers at our next meeting. Many of our members have mixed-use buildings and could benefit from some assistance. We hope this program will make a difference for some of us.
We want to serve you. That's why we asked about your priorities for future meetings and activities, and what topics you'd like covered in this newsletter. Please remember that we are a mostly volunteer organization. Your input is vital to our remaining in touch with your concerns. Please feel free to contact us any time at info@smallprop.org. And if you're not getting our Action Alerts and other communications, just shoot us an e-mail. Thank you!