Sacramento’s rental housing sector is contending with potential policy shifts, including “anti-harassment” legislation for tenants, local rent control amendments, and a possible vacancy tax on unoccupied rental units.
These were among the major issues discussed at the California Apartment Association’s Sacramento Rental Housing Round-Up last month.
Mallori Farrell, the association’s senior vice president of local public affairs, identified proposed anti-harassment measures at both city and county levels as the most immediate threats to the local rental housing industry.
Tenant advocates started pushing for an anti-harassment ordinance after they failed to strengthen rent control at the ballot box. During a townhall meeting in February, they pressed newly elected City Councilwoman Caity Maple and county Supervisor Patrick Kennedy to take up the cause. Now both the city and county are considering such measures, following the lead of other Northern California jurisdictions.
“We’ve seen this in Oakland, we’ve seen this in San Francisco, and we certainly don’t want it to come to Sacramento,” Farrell said.
According to Farrell, sufficient renter protections against harassment are already in place at the state and federal levels, and ordinances like the one under consideration can invite frivolous lawsuits.
The item recently went before the city’s Law and Legislation Committee, which asked for more information but did not take a vote. In August, city staff is expected to make a presentation on what the capital city is doing to help tenants understand their rights and any potential gaps in these rights, said City Councilwoman Lisa Kaplan, who also presented at the webinar.
Farrell addressed how some council members are pushing for amendments to existing tenant protections, including initiating “just cause” eviction policies from Day 1 and increasing financial relocation assistance for tenants displaced due to unit renovations.
She said a possible vacancy tax is also on the horizon. Initially intended to address vacant parcels, the city’s discussion broadened to include multifamily buildings, just as the marketing is softening.
To explain the uptick in problematic housing legislation, Farrell pointed to the 2022 election, saying the council makeup moved from majority business-friendly council to being evenly split between pro-business council members and strong progressives, and the mayor somewhere in between.
“With the 2024 primary election right around the corner, and our business-friendly incumbents up for re-election, this next election cycle will be just as important as 2022 in determining the future makeup of City Council,” she said. Additionally, Mayor Darrell Steinberg has decided not to seek re-election, leading to an open race for the mayor’s seat.
Farrell stressed the importance of housing providers getting involved as these matters arise when threatening proposals surface.
“It’s absolutely essential that our members show up and speak up at these meetings – either by Zooming in to a City Council meeting or a Board of Supervisors meeting, sending a personalized letter, or picking up the phone,” she said.
Also during the webinar, District 1 Councilwoman Kaplan highlighted the value of industry professionals getting involved in city government, including serving on boards and commissions. She said, “Your experience on what you deal with is so greatly valued. We need people who have experience in the industry … who run small businesses, who have apartments and rent them out to get involved.”
The Sacramento Rental Housing Round-Up also featured an economic update from Will Austin, director of analytics at CoStar, and other CAA industry experts who provided updates on state legislation and court cases impacting the industry. The webinar is now available on demand.
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