Once again, Leno takes aim at Ellis Act
Like last year, a bill is threatening to undercut a landlord’s right to leave San Francisco’s over-regulated rental housing business.
The proposal, SB 364 by Sen. Mark Leno, D-San Francisco, targets the Ellis Act. Before the Ellis Act was passed in 1985, rent-controlled cities — Santa Monica in particular — were forcing landlords to stay in business, even if they were losing money or experiencing other hardships.
In many respects, SB 364 would turn the clock back 30 years in San Francisco. It would force many rental property owners in The City to wait at least five years before removing their units from the market. The bill would offer no recourse for landlords operating at a loss or needing to leave the business for family reasons. It also comes at a time when Ellis Act evictions have seen a steep decline in San Francisco, with the rent board reporting 33 Ellis Act eviction notices since July 2014.
The legislation is modeled after SB 1439, which Leno carried last year and which met defeat at the hands of the California Apartment Association. SB 364 is co-authored by Assemblyman David Chui, D-San Francisco, and like its predecessor, is sponsored by San Francisco Mayor Ed Lee.
As in 2014, CAA will fight to protect landlords’ property rights and vigorously defend the Ellis Act.
To get involved
As a landlord or property management professional, you can do your part to protect the rental housing industry by participating in CAA’s annual legislative conference next month.
On March 10, hundreds of rental housing professionals will visit the Capitol and educate lawmakers about the important service the apartment business provides to Californians. It’s also an opportunity to tell your legislative delegation what’s wrong with bills such as SB 364.Register now