The city of Concord this month developed a framework for a rent and eviction control ordinance that encompasses some of the most severe mandates on rental housing providers seen in local legislative proposals to date.
At the Oct. 10 meeting, the third in a series of workshops CAA has participated in since summer, the City Council directed staff to include the following in the ordinance:
- A rent cap of 3% or 60% of CPI, whichever is lower.
- A ban on capital improvement pass-throughs.
- Requirements that substantial remodels give renters the right to return to the post-remodeled unit at pre-remodeled rental rates.
- Increased relocation payments beyond state law, to include three months of rent as determined by HUD fixed-rate mortgage rates, and an additional month if the renter is considered part of a “vulnerable population.”
- A retroactive provision resetting rents to Jan. 2023 levels.
The City Council majority approved the framework despite compelling data and testimonies from local housing providers indicating the new regulations could lead to significant financial losses for Concord rental properties and necessitate operating under unsustainable budgets.
Concord city staff sought CAA’s assistance in gathering real-life testimonies and solicited information on expenses and debt obligations from Concord housing providers. CAA led a coalition of Concord rental providers to produce a report revealing that operating costs for Concord owners have risen steadily year-over-year, surpassing national averages, with insurance rates alone having increased an average of 21-25% for all unit types. Survey respondents reported capital improvement costs totaling in the millions in Concord. Volatility in interest rates remains a concern for Concord property owners, many of whom prepare for higher interest rates from near-expiring loan terms.
The new City Council majority disregarded the facts and data presented, proceeding with a rent control framework based on anecdotal and ideological beliefs. City staff is expected to present the ordinance language on Nov. 28. A public hearing is required before the city casts a formal vote.