Political calculus

It’s not often that an elected official is so blunt. One might assume that the issue was not brought up because there aren’t a lot of good tools in a city’s toolbox to contend with the free market, especially regarding property. But to hear about the political calculus of an elected official in such a public setting was certainly unexpected. Lim is now running for a judge seat in Alameda County and, if successful, will leave his seat on the council. However, I don’t think that is a factor in his new charge to do something about the growing housing crisis. But what exactly is that something? When Lim made his proposal in the fall, it was to consider a just cause eviction ordinance, and that was ultimately tabled while a city-formed task force explored options on addressing the ever-increasing cost of rents in the city while also not creating an undue burden on responsible property owners and their investment. Little consensus was established by the task force aside from seeking funds for housing programs, public outreach, increasing landlord/tenant communication and retaining below-market rate units. However, relocation assistance seemed to have fewer concerns by those on the task force than alternatives such as rent control or just cause eviction, which is often enacted in tandem with rent control.

Enter Mayor Joe Goethals, who proposed an idea for relocation assistance of at least three months rent if a unit’s rent was increased by 10 percentage as a way to give a property owner pause before sending that letter to the tenant. While seemingly not popular with property owners, it was an idea the council deemed worthy of exploring further at a meeting Monday, April 11. In response, a tenant group announced its intention to gather signatures for a November ballot measure that would institute rent control, just cause eviction, a rental commission and fees for rental property owners. State law also exempts single-family homes, secondary units, duplexes, condominiums and apartment buildings built after February 1995 so really what we are talking about are apartments in buildings constructed before 1995.

Will the proponents be able to gather the necessary signatures? It will be tough, but maybe. Will it pass? I would think no, especially since it is such a radical departure from current policy, but there is expected to be a high voter turnout in November, especially if the presidential race turns out to be between Donald Trump and Hillary Clinton.

One thing on which nearly everyone can agree is that the current state of rental prices is unprecedented and downright terrifying for some — particularly those on the margins holding onto the Peninsula by their fingernails and others finding it harder and harder to save for the more elusive American Dream of home ownership.

Another thing on which nearly everyone can agree is that this situation is larger than the city of San Mateo. It is a regional and statewide issue exacerbated by a series of events from the dissolution of redevelopment agencies, the banking crisis, the low-interest rate environment that sparked other investment interests, the high-tech surge and even the policies of banning development in open space or restricting heights.

Nobody, and I mean nobody, has been able to come up with a panacea, though there are no shortfalls of ideas from rent control and fees on property transfers to proposals to adjust land use policies. My own idea of creating home savings accounts for renters similar to health savings accounts or IRAs that would allow for renters to lower their taxable income and place money into an account that could be used for a down payment on a home would never make it past a congressional committee even though home owners enjoy tax breaks on their mortgage interest to promote home ownership. U.S. Rep. Jackie Speier, D-San Mateo, has also proposed a program similar to Lifeline that would allow for assistance for seniors living on fixed incomes.

In San Mateo, relocation assistance for all rental properties is on the table and it is worth exploring as at least one step to help address the crisis. It is not by any means perfect for any party — the property owner who must pay someone to move or the person taking that money to leave the community — but it is a modest proposal that should not necessarily be seen as a step down the path to rent control. And that is good or bad depending on your point of view.

One thing to consider, however, would be to establish a tiered system in which a 10 percent increase would trigger a two-month relocation assistance package, 15 percent triggers four months and 20 percent or more triggers six months.

San Mateo has never been a city that takes radical steps. It is by nature deliberative, cautious, compassionate and mindful. Relocation assistance is not a cure, but shows the city leaders are moving past political calculus and trying to balance the needs of everyone in the community while addressing a growing crisis.

Jon Mays is the editor in chief of the Daily Journal. He can be reached at jon@smdailyjournal.com. Follow Jon on Twitter @jonmays.