Senate Panel Defeats Bill to Weaken Rent Controls

SACRAMENTO —  Legislation that would weaken rent-control restrictions in Santa Monica, West Hollywood and four other cities by authorizing landlords to increase rates when a housing unit became vacant was defeated Tuesday night by the Senate Judiciary Committee.

Rejection of the landlord-supported bill handed a substantial victory to tenant organizations, local rent-control boards and representatives of low-income Californians who claimed that the measure would open the door to gouging of renters.

Proponents of the proposal by Assemblyman Jim Costa (D-Hanford) argued that “extreme” rent controls in such cities as Santa Monica started out years ago as well-intended programs for moderate- and low-income residents, but had evolved into havens for high-income professionals.

Likewise, supporters of the bill contended, rent controls had imposed such severe financial restrictions that landlords were unable to improve maintenance and unwilling to invest in construction of more apartments. They claimed that this situation has aggravated the housing crisis in California.

The bill would have allowed landlords in Santa Monica, West Hollywood, Palm Springs, Berkeley, East Palo Alto and Cotati to increase rates when a rental unit was voluntarily vacated by a tenant. The proposal would not have applied to Los Angeles or San Francisco, where landlords currently have such authority.

The Judiciary Committee, historically a dead end for bills that would weaken rent controls, defeated the proposal on a 5-5 vote. Senate President Pro Tem Bill Lockyer (D-Hayward), a committee member, represented the swing vote but abstained.

The committee agreed to reconsider its action at a future date if Costa can fashion amendments suitable to Lockyer. Lockyer said later he was concerned about rent-controlled housing being occupied by higher-income people.

Lockyer said he was interested in discussing with Costa an amendment that would subject prospective tenants to an income-screening process aimed at limiting rent-controlled housing to low-income people.