Housing: Northridge Earthquake, New Santa Monica Rent-Control Regulation

The Santa Monica political scene continues to adopt many of the same restrictive standards that have hampered our industry long before the Northridge earthquake on Jan. 17.

A new regulation of the Santa Monica Rent Control Board took effect May 11. This new facet of the rent law attempts to allow pass-throughs on earthquake-related capital expenditures. Petitions must be filed no later than Jan. 17, 1995, for completed repairs or work to be done.

Tenants can file petitions to oppose the owner’s repairs for damage relating to the earthquake based on the owner’s costs of repairs or if the rent increase imposes a financial hardship for the tenant. Tenants who voluntarily relinquished their tenancy after the earthquake have the right to reoccupy their units once rehabilitation has been completed.

Simply allowing “vacancy decontrol” without any strings attached could and would allow owners to control the future of their Santa Monica rentals unhampered by idiotic formulas and petition processes.

An Assembly bill authored by Jim Costa may, if passed in Sacramento, do just this: create vacancy decontrol in California’s communities with radical rent control policies such as ours in Santa Monica.

Early in May, a petition drive began to change the City Charter to require an owner to pay $10,000 for the privilege of decontrol upon vacancy. This sum would have to be paid directly to the vacating tenant, or paid directly to the city of Santa Monica if the tenant refuses to accept the money. These funds would be required to be paid within 21 days for each vacated unit.

Those in control of the rental industry in Santa Monica still think after 15 years that the owners have huge, deep pockets lined with gold. Even after paying this ridiculous ransom, the vacated unit immediately falls back under rent control’s full regulation once re-rented!

Rental housing development used to be a fun way to invest your money and energies up until April 10, 1979, when rent control moved into Santa Monica. Maybe the effects of the Northridge earthquake will alter our political landscape with the permanent loss of thousands of voters. Only time will tell--maybe soon a vacancy in City Hall will occur as the political power base shifts away from the radical left.

A free-market economy built our city’s rental units and a free-market economy will be required to rebuild our destroyed Santa Monica housing industry!

WALT ZAMBAS

Santa Monica