Although touted as a cure for the Bay Area’s housing crisis, a newly released regional housing proposal known as the CASA Compact fails on many levels.
This plan and its $2.5 billion annual price tag is the result of an 18-month process led by the Association of Bay Area Governments. It’s billed as a 10-point plan to tackle the region’s housing woes by asking Sacramento lawmakers to dictate “one size fits all” housing policies for every city in the Bay Area.
Unfortunately, the compact neglects to give much credit to those cities working to permit enough homes for our growing population. It fails to respect the millions of voters who opposed rent and eviction controls. And while many claim the compact is a tool to protect lower-income residents, it includes no guarantees for the families who need help the most and lacks a meaningful response to the region’s growing homelessness crisis.
First, the CASA Compact seeks to impose a price cap on every rented unit in the Bay Area — including single-family home rentals.
Proponents claim this broad form of rent control would decrease the number of households at risk of homelessness and ease burdens on low- and fixed-income renters. The proposal, however, lacks any form of means testing, making the Bay Area’s wealthiest residents eligible for price-controlled housing while offering no assurances to those at greatest risk of displacement.
Second, the CASA Compact calls for a law known as “just cause eviction.”
Under this policy, rental owners must prove in court, or before a political body, the reasons for removing a problem resident. Because the legal process is costly and very time-consuming, bad tenants stay put longer, which is unfair to their law-abiding neighbors. Knowing that their ability to evict is limited, many landlords may reject applicants with an imperfect rental history. And these applicants are often those in the greatest need of housing.
The CASA Compact provides few details on enforcement of a regional price control law, other than to create yet another government mandate. Regulating the cost of housing isn’t cheap. Administering rent control in the 15 California cities with rent regulations, costs taxpayers $56.5 million per year. Imagine what it might cost to price control homes in the 101 Bay Area municipalities.
But most troubling, this plan ignores the will of the electorate and the communities it seeks to serve. In the last three years, voters in five Bay Area cities rejected rent and eviction controls, mostly by wide margins. In November 2018, California voters overwhelmingly rejected Proposition 10, which would have paved the way for the type of housing price controls the CASA Compact outlines. Several Bay Area cities including Menlo Park, Redwood City, San Mateo, and Palo Alto have taken steps to enact renter protections that make sense for their residents but do not include rent control.
And while the CASA Compact was being developed, there was little input sought from city officials who have been working to address the housing crisis in their communities. Instead, it was crafted in a series of meetings held in San Francisco, and only after the compact was finalized were city leaders and residents from across the Bay Area consulted.
The CASA Compact is a bad fit. It’s time for the Association of Bay Area Governments and the stakeholders who contributed to the compact to return to the drawing board and find solutions that would actually alleviate the housing crisis and immediately help the many homeless people in the Bay Area by getting input from the communities on the best ways to encourage construction of housing for families of all income levels.
Joshua Howard is the senior vice president of the California Apartment Association.
(5) comments
We are almost 2 decades into the 21st Century and so many are still trying to stay in the 20th Century with all of the laws/ordinances/etc. that were drafted/passed employing LOS metrics
It took us over 100 years to build up this LOS based society of Bedroom Communities that require driving to do anything outside of your own neighborhood and it is looking another 100 years to unwind into a renter’s society with a VMT based laws/ordinances/etc.
Hope not. As too much continues to be cast in concrete for the young who do NOT have the same life style as the Boomers did and clinging to
Currently, the bedroom situation on the Peninsula is nearly a monopoly…where landlords can and do charge ever higher rates. A competitive environment would only be with rent control (of which I detest, but support if they have a hard-sunset date that can only be extended via a super majority vote) and these types of legislation that acknowledge the near monopolistic bedroom vs jobs situation
There is hope when commuting to clients offices in the S Bay and see the changes in zoning laws allowing bedrooms where they did not allow just a few years ago
While i dont agree with Cynthia's comments, i understand that she has to play to her base of supporters. But judging from a recent poll conducted on CASA, her base is really small. And instead of pushing another failed policy like rent control, it might be time for her to start thinking outside the box. Here are the poll results:
When asked it they would back a measure that would ease up regulations to speed up housing construction and impose a Bay Area-wide rent cap and tenant protections, just 43 percent of voters expressed support while 42 percent said they opposed the plan.
Among respondents, Latino and black voters were more likely to support the proposed CASA compact than their white counterparts. Voters younger than 40 tended to support it while those over 40 leaned more in opposition. And 62 percent of renters leaned in favor, compared to a third of homeowners.
https://www.sanjoseinside.com/2019/03/25/poll-44-percent-consider-leaving-silicon-valley-over-high-costs/
Mr. Howard does a very good job of explaining why CASA will not solve our problems. Rent control and just cause eviction make owning and operating rental housing more expensive and will result in fewer rather than more rental units available. Mountain View is a great example of what has happened since rent control was adopted in 2016. Somewhere between 150 - 200 rental units have been lost, most of which housed low income residents. These units are being replaced with owner-occupied housing.
CASA also does nothing to address the demand for housing - no limits or reductions in the amount of commercial office space being built.
CASA should be summarily dumped and the authors of such should be sent back to the drawing board to find meaningful long-term solutions that will not eviscerate the finances of those who provide rental housing.
The author and the organization he belongs to are responsible for the lack of renter protections in California. City Councils and state legislators have been chained to this powerful lobbying group's influence for decades. They have employed agents who lie to voters and forge signatures on petitions. They need to be tossed out on their ears out of every legislative body if we are to make any positive movement in this housing crisis. They will never give an inch and are now ruled by Wall Street landlords while pretending to represent "mom and "pop" landlords. They should be investigated for their misdeeds.
The key is to not let CASA even get off the ground. This organization should not be even allowed to live. Next, get rid of the ABAG which is a regional institution whose members are not elected and they are not accountable to anyone. Lastly, MTC should be permitted to live but placed on a very short leash. CASA and ABAG need to be eliminated from receiving tax payer money and any authority they have over us.
Welcome to the discussion.
Log In
Keep the discussion civilized. Absolutely NO personal attacks or insults directed toward writers, nor others who make comments.
Keep it clean. Please avoid obscene, vulgar, lewd, racist or sexually-oriented language.
Don't threaten. Threats of harming another person will not be tolerated.
Be truthful. Don't knowingly lie about anyone or anything.
Be proactive. Use the 'Report' link on each comment to let us know of abusive posts.
PLEASE TURN OFF YOUR CAPS LOCK.
Anyone violating these rules will be issued a warning. After the warning, comment privileges can be revoked.