Dan Yukelson of Beverly Hills writes a compelling letter appearing the Beverly Hills Weekly about the ill-conceived and deeply flawed Proposition 10, and the devastating impact it will have on rental housing, affordable housing, and local and state government. Join Dan and Vote NO on Proposition 10 in November.
Beverly Hills Weekly, Issue 989
Imagine going away for the entire summer, and during your 3-month vacation renting out your home only to learn that when you return, you have no right to evict your tenant without first paying relocation fees established by our City. Imagine the plight of your elderly parents who, rather than sell their home in Beverly Hills decide, for tax or other reasons, to rent their home to supplement their retirement or cost of assisted living, and that the income from their then rent-controlled home fails to keep up with rapidly rising medical expenses and living costs – will you have to step in to help or will they find themselves in need of government subsidies?
This November, California voters will have the opportunity to vote on Proposition 10, the so-called and ill-conceived “Affordable Housing Act.” Proposition 10 will repeal a 1995 bi-partisan compromise known as the Costa-Hawkins Rental Housing Act, a state law that provided certain exemptions and limited relief to property owners from onerous local rent control ordinances. Now, coming this November, these protections could be abolished.
To be clear, if Proposition 10 passes, single-family homes, condominiums and any new residential construction within the City of Beverly Hills and elsewhere could be placed under rent control. If you own a house or condominium, passage of Proposition 10 could and likely will negatively impact not only your property’s value, but it could reduce your planned retirement income too. If Proposition 10 passes, only the truly insane would risk staying in the rental housing business or building new rental housing let alone affordable housing – this loss of rental units will merely add to the already existing housing shortages in California.
As California voters begin to understand the details – and devastating implications – of the ironically named “The Affordable Housing Act,” stakeholders across the state are weighing in, and raising the alarm. If passed this November, Proposition 10, the November ballot initiative could have long lasting and devastating impacts on housing here in the State of California.
The San Francisco Chronicle’s editorial board expressed deep concerns about Proposition 10’s impact on budgets in Sacramento and localities throughout California. Citing the Legislative Analyst’s Office’s independent conclusion that its passage would cause hundreds of millions of dollars in state an local revenue to evaporate, it notes governments will likely be forced to seek broad – and steep – tax increases elsewhere.
In an article for Forbes, founder and Chief Executive Officer of the L.A. Property Management Group, David Crown, lays out the most basic concern of the issue: “repealing Costa-Hawkins would prove harmful not only to property owners but to California’s economy as a whole.” But, do not just take his word for it: He notes liberal economist and Nobel laureate Paul Krugman told the New York Times in 2000 that the folly of rent control is one thing all economists agree on.
And if you are not already convinced, Alice Huffman, President of the California National Association for the Advancement of Colored People, believes that Proposition 10 “…will increase the cost of renting and make it even harder to fund affordable housing. Prop 10. is anything but affordable to Californians…”
Proposition 10 is flawed, and its passage could have devastating and long-lasting implications for all Californians. If Proposition 10 passes, California’s housing crisis will be even greater. Proposition 10 is not a solution and will only make California’s housing crisis worse. Proposition 10:
- DOES NOT increase funding for affordable housing
- DOES NOT facilitate building housing that local communities have already approved
- DOES NOT provide relief for people facing high housing costs
Proposition 10 will hurt the economy. Passage of Proposition 10 will mean less revenue for State and local government. According to recent economic studies, passage of Proposition 10 will lead to more than $5.7 billion in lost economic output, more than 38,000 jobs lost, and combined loss of state and local revenue losses of up to $1.3 billion annually due to reduced property values and less construction-related economic activity in the state. The only way to make-up for the lost State and local revenue is for the government to tax you more!
This past August, during a study session, our City Council planned to take up the issue of whether to support or oppose Proposition 10. The discussion and proposed vote on Proposition 10 was postponed, but it will likely be addressed by our City Council again very soon.
Just recently, the City Council in one of the most socialist bastions within the State of California, the City of San Francisco, voted 7 to 4 against the passage of Proposition 10.
If passed, we in Beverly Hills and all of California lose. Please tell our City Council not to support Proposition 10. Vote no on Proposition 10 in November.