Tenant Legislation to Watch in 2015

Landlords and tenants in Sacramento are in a bit of a standoff these days, with each side having far more success killing the other’s bills than advancing their own agenda. This means that most logical solutions to today’s problems for tenants will not be introduced or adopted in Sacramento this year. Don’t hold your breath waiting to see a bill introducing statewide rent control this session. That said, there will be important bills tackling major tenant issues in 2015. Potential state bills include legislation to fund the renters’ rebate, ban Section 8 discrimination, reform the Ellis Act, and extend protections for tenants who are victims of domestic violence.

Democrats lost their legislative supermajority this session, but that fact is largely irrelevant to the advancement of tenant rights in California. Tenants gained virtually nothing from the two-year Democratic supermajority. Even modest security deposit and Ellis Act reform bills were killed by Democrats. Real estate interests have spent millions funding and lobbying legislators of both parties and their investment has paid off in recent years.

The good news is that legislators will be under less pressure to serve real estate interests because this year is not an election year for the state assembly or senate. In addition, key anti-tenant Democrats lost re-election bids and will not be in Sacramento to poison the debate. While the climate remains difficult for tenants in Sacramento, tenants will push for important legislative changes this session.

Here are some of the major issues on the horizon this year:

Political Arm of the Statewide Tenant Movement

2015 marks the launch of the Tenants Together Action Fund. TT Action Fund will work to hold legislators accountable, promote tenant-friendly candidates, and pass legislation. Without a mechanism to hold candidates accountable, we have seen again and again that politics regularly trumps policy in Sacramento.

TT Action Fund is the first group of its kind for tenants at the state level in California. The SF Tenants Union, Santa Monicans for Renters’ Rights, the Coalition for Economic Survival, and others have long endorsed candidates as part of their tenant organizing work. Those groups have changed the political dynamics at the local level in some California cities. Now similar efforts will be made at the state level where it is sorely needed.

Eddie Kurtz of Courage Campaign insightfully wrote in a Sacramento Bee editorial this weekend, “The central political struggle of our time is not left vs. right or Democrat vs. Republican, it is corporate interests vs. human interests.” The statewide tenant movement must invest in candidates who serve human interests over corporate real estate interests and hold accountable those who do not. The launch of the Tenants Together Action Fund is a major step in this direction.

The Renters’ Rebate

California’s budget revenues are billions higher than projected. A broad coalition is demanding that the Governor restore funds to the recession era cuts to programs that help the poor. Renters are a key part of this coalition. A key demand for renters is restoration of the Renters’ Rebate.

In 2008, then-Governor Schwarzenegger used his line-item veto power to eliminate the rebate of up to $347.50 for senior and disabled tenants making less than $44,096. Nearly half a million Californians relied on that annual check to pay for necessities like groceries and medications. Schwarzenegger’s cut, ostensibly to address budget deficits, was devastating for those most in need.

Governor Brown released his budget on Friday. Despite the budget surplus, he has again defunded the Renters’ Rebate. The legislature can restore the funds through the budget process. Last year, Assemblymember Phil Ting’s effort to fund an expanded renters’ rebate program was held up in the appropriations committee. With the budget surplus, this issue will have new momentum in 2015.

Section 8 Discrimination

Amazingly, California law does not expressly ban section 8 discrimination, emboldening landlords to refuse to rent to prospective tenants or evict current tenants for no reason other than the fact that these low-income tenants rely on the government to subsidize the rent. California courts put their stamp of approval on Section 8 discrimination in the Sabi v. Sterling court decision.

The recent case of Dorothy Morris in Sacramento has jumpstarted the campaign for reform. 83-year old Dorothy Morris was evicted from Sacramento Manor, a senior living community in Sacramento. Sacramento Manor claimed they wanted to rid the complex of Section 8 tenants. The eviction sparked statewide outrage, with Tenants Together members across the state taking action to contact the landlord.

Oregon banned Section 8 discrimination last year. California needs to follow that example. It is hard enough to find stable and affordable housing without having to deal with policies to exclude Section 8 tenants. Expect to see growing calls in Sacramento this year for a ban on Section 8 discrimination. You can sign our petition now calling for an end to this practice.

Ellis Act Reform

The Ellis Act is most used in San Francisco, Los Angeles and Santa Monica, but other rent contol cities are at high risk as well. The Act allows a landlord to evict all tenants of a building to go out of the rental business. As demonstrated in detail in a 2014 report by Tenants Together and the Anti-Eviction Mapping Project, the Act is primarily used by real estate speculators seeking to profit through the eviction of tenants. SB 1439 (Leno) would have authorized San Francisco to stop most speculator abuses of the Ellis Act locally. The bill narrowly passed the state Senate last year, but was stopped in an Assembly committee by Assemblymember Sharon Quirk-Silva who has since lost her reelection bid.

Interestingly, Ellis eviction rates in San Francisco dropped sharply over the last year, with the downward trend starting right after Senator Leno introduced SB 1439. This session, the fate of Ellis Act reform may well depend on how frequently the Ellis Act is being misused by speculators to displace tenants. It is not yet clear if prospects for Ellis reform are better this year than last, and proponents are still evaluating how best to proceed.

Tenant Protections for Domestic Violence Victims

In 2013, Senator Mark Leno, tenant advocates, and anti-domestic violence activists, passed important protections for victims of domestic violence and human trafficking. SB 612 (Leno) provided relief so such tenants would not be trapped in unsafe living conditions and could escape their leases without suffering financial penalties. Key provisions of SB 612 are scheduled to sunset in January 2016. Expect to see a bill to extend these protections in this legislative session with the National Housing Law Project, the Western Center on Law & Poverty, and the California Partnership to End Domestic Violence continuing their excellent work on this issue.

Rent Control

A rational state experiencing huge rent increases and the second highest rents in the nation would adopt statewide rent control, but there will be no bill calling for that in Sacramento this year. In contrast, campaigns for rent control at the local level will gain momentum in 2015. In the Bay Area, for example, grassroots campaigns for rent control have already begun in cities within Alameda, San Mateo, Santa Clara, and Marin counties.

Landlord and realtor associations will continue to fight local tenant protections with misinformation and scare tactics, but astronomical rents and strong public support will push local rent control onto the agenda of an increasing number of city councils. As former NY mayoral candidate Jimmy McMillan famously announced, “the rent is too damn high.” Plus, with the increasing consolidation of rental property in the hands of wall street landlords, the need for local tenant protections has never been greater.

First published at BeyondChron.org

2014 Legislative Updates

Despite the challenging climate for pro-tenant legislation at the state level, Tenants Together members and allies worked hard to push our issues forward. Beginning with our Renters' Day of Action in February, 500 tenants marched on the Capitol to demand Ellis Act reform, restoration of the Renters' Rebate, and passage of SB 391 the Homes & Jobs Act.

Our bill for Ellis Act reform, SB 1439 (Leno), made it off the floor of the State Senate, going further than any bill for Ellis reform in over a decade. We assembled a broad coalition of support, with tenant groups, unions, tech companies, local politicians, and grassroots activists working together to stop unfair Ellis Act evictions. Unfortunately the bill failed in an Assembly committee where two Democrats joined Republicans in killing our efforts for reform. Senator Leno has stated that he is committed to changing the Ellis Act to stop its use by real-estate speculators.

Following our Renters' Day of Action, Tenants Together co-sponsored legislation to restore the Renters' Rebate. The bill was held up in the Assembly Appropriations committee due to objections to the high price tag. TT will continue to fight for restoration of these essential funds. Add your voice here.

Our last demand for the legislative session this year, passing SB 391 the Homes & Jobs Act to secure dedicated funding for affordable homes in California, also failed to pass into law. However, according to our allies at Housing California who co-sponsored the bill, limited funds were secured through the Cap-and-Trade program for affordable housing near transit hubs. Still California does not have money specifically set aside to build more affordable housing, so this fight continues.

Things don't change overnight in Sacramento. Despite our legislative losses this session, we made headway in organizing tenants in large numbers to show up in the Capitol for the first time in decades. Legislators were forced to take a stand on tenant issues and consider our arguments. If we continue to organize, tenants can become a voice to be reckoned with in the Capitol. You can help us build power by becoming a member today.

Renters’ Rebate Bill Passes Key Assembly Committee

A bill to provide for a renters’ rebate for low-income California tenant passed a key committee earlier today.  Co-sponsored by Tenants Together, the bill addresses a central demand of the Renters’ Day of Action held in Sacramento earlier this year.  The bill is co-authored by Assembly Members Phil Ting (D – San Francisco) and Tom Daly (D – Anaheim).

The bill comes on the heels of a report by the California Housing Partnership showing that rents surged 20% statewide from 2000-2012, while median income fell by 8%.  Cost-burdened renters are struggling and need help.  At the hearing, speakers emphasized the need for greater equity, as homeowners currently receive a range of tax advantages, while renters receive virtually nothing.

“Compared to homeowners, renters really shouldered the burden of cuts to help California cope with its budget crisis,” said co-author Ting.  “As state finances improve, our tax policy cannot continue treating renters as second class citizens.  Housing is expensive in California and this fact of life places pressures on working families still waiting for the economic recovery to benefit their bottom line.”

“California homeowners receive significant state and federal tax benefits, including the mortgage interest deduction and the homeowner’s exemption,” commented co-author Daly.  “It’s reasonable to provide renters, who may not be able to purchase a home, with some tax relief, too.  Housing is a fundamental need for all California families.”

San Francisco tenant Mira Ingram attended today’s hearing to provide testimony as a witness about the importance of the renters’ rebate.  “For many people like me,” said Ingram, “the renters’ rebate helps cover our basic needs.”  Ingram is a disabled tenant who used to rely on the rebate to pay for wheelchair maintenance before the program was defunded in 2008.

The renters’ rebate was in effect for decades former Governor Schwarzenegger used his line-item veto to eliminate tax rebates to low-income elderly and disabled renters. It was his single biggest line-item veto in the budget, eliminating all funding for renters under the Senior Citizens Renters Tax Assistance program.  The veto was widely condemned at the time. Tenants Together led the opposition to the veto, but with the spiraling economy at the time, elected officials were not prepared to bring the rebate back in the years that followed.  Advocates believe the rebate is now more viable given a stronger statewide economy.

AB 2175 would improve upon the prior program by extend the program to all low-income renters, not just those who are senior or disabled.  Under the bill, tenants in households earning less than $42,588 would receive an annual rebate check of $250 - $348, depending on their income level.

The bill passed the Revenue & Tax Committee of the Assembly by a 6-3 vote.  Next, it heads to the Appropriations Committee.

Campaign launched to reform the Ellis Act

California's Ellis Act is out of control. When the Ellis Act was adopted, proponents claimed it would rarely be used to evict tenants. For ten years, that was true. But then real estate speculators starting abusing the Ellis Act to turn a quick profit by evicting long-term tenants and selling the units. Ellis Act evictions are now surging. In San Francisco and Los Angeles in particular, thousands of rent-controlled tenants are being displaced by Ellis Act evictions. The stories are heartbreaking, including a recent high-profile case of seniors and a disabled adult daughter who were thrown out of their long-term Chinatown home by a serial evictor. Click here for more information.

Enough is enough. The time for Ellis Act reform is now. Sign our public petition to save homes for low-income renters:

For months, groups in San Francisco have been fighting back against the latest surge of Ellis Act evictions. The Anti-Eviction Mapping Project (AMP), a non-profit collective housed within the San Francisco Tenants Union, just released its newest map of no-fault evictions. The numbers of no-fault evictions in San Francisco from 1997 to 2013 are stunning: 3693 due to Ellis Act, 6952 due to owner move-in, and 1121 due to demolition. Grassroots organizations like Eviction Free San Francisco have been consistently protesting unfair evictions since the summer, and now local politicians have responded positively to the call to address the crisis. The issue has received national attention. Thanks to effective organizing on the issue, the time is now to reform at the state level.

Sign our public petition now!

Governor Brown Veto Betrays Low-Income Tenants

Governor Jerry Brown has vetoed the most important housing bill before him this year. AB 1229 (Atkins) would have restored to cities the power to enforce inclusionary housing laws that require affordable rental units as part of new construction.  The veto was immediately condemned by tenant rights organizations and affordable housing advocates.

Over 150 California cities have inclusionary housing laws.  An appellate court created chaos in 2007 by ruling that a local inclusionary law was preempted by the state’s Costa Hawkins Rental Housing Act, a 1996 law that had nothing to do with inclusionary housing.  The California Supreme Court refused to review the case, leaving Palmer / Sixth Street Properties v. City of Los Angeles in effect.  AB 1229 would have overturned the Palmer decision, clarifying that it is up to cities whether they want to adopt and enforce inclusionary housing laws as a means to increase the supply of affordable rental housing.

The governor’s track record on affordable housing has not been good. As mayor of Oakland, he opposed inclusionary housing.  At the state level he vetoed a housing preservation bill (AB 1216) soon after taking office.  He dismantled redevelopment and has failed to offset the loss of funding or otherwise increase funding for the development of affordable housing. He has announced no major affordable housing policy initiatives since taking office.  His solution to the housing affordability crisis in California appears to be to let the free market do whatever it wants.

Many hoped that the governor would sign AB 1229 as a local control bill.  Whether or not he thought inclusionary was a good policy when he was mayor, the thinking was that as governor he might let local cities decide their own fate, as they did before the Palmer decision.  Instead, as is clear from his veto message, he did the opposite -- prohibiting cities across the state from adopting inclusionary laws because he didn’t like them for Oakland.

"As mayor of Oakland, I saw how difficult it can be to attract development to low and middle income communities," Governor Brown wrote in his October 13 veto message. "Requiring developers to include below-market units in their projects can exacerbate these challenges, even while not meaningfully increasing the amount of affordable housing in a given community."  Apparently, the Governor believes he knows better than affordable housing experts across the state how to “meaningfully increase the amount of affordable housing.”   

A broad coalition of tenant groups, affordable housing advocates, and community-minded developers, supported the bill, as did most major newspapers around the state.  Big developers, mega-landlords and realtors fought it with all of their might.

Governor Brown knew the issue here.  He prioritized maximizing the profits of developers and realtors over housing struggling Californians.

With rents skyrocketing, the need for affordable rental housing has never been greater.  AB 1229 would have expanded the supply of affordable rental housing at no cost to the government. 

Advocates cannot allow the gutting of inclusionary housing laws to stand.  Through litigation, new legislation and/or a ballot measure, Palmer must be overturned so that cities can once again require affordable rental housing as part of new housing development.

Momentum builds to end security deposit theft

California is a deep-blue state, with a Democratic Governor and a two-thirds super-majority in both houses of the legislature.  It is the home to 15 million tenants in an overheated rental market, and ground-zero in the nation’s foreclosure crisis.  Now is the time to get real change in the Golden State.

But when it comes to common-sense tenant rights laws, too many Democrats vote the wrong way.  They take large donations from the real estate lobby, which wields undeserved clout in Sacramento.  Even some “progressive” Democrats who represent deep-blue, urban districts are not our best allies.

At Tenants Together we're working to change how tenants are treated in Sacramento. On Tuesday May 7th, dozens of Tenants Together members took to the Capitol for a “Day of Action” to urge State Senators to support SB 603, a bill to promote security deposit reform. While tenants were walking the halls of the Capitol, the Senate Judiciary approved the bill by a vote of 4-1, a key step toward passage of the law. The “Day of Action” was a show of force by tenants in a capital often dominated by real estate industry lobbyists.

Members who participated in the Day of Action were victims of security deposit theft and allies. One member, Sebrina, flew in from San Diego to make sure Senators heard her story. Sebrina says, “My deposit was partially withheld for cleaning and unnamed “damages.”  I left the place cleaner than it was when I moved in.  As for damages, I have no idea what the landlord was talking about and they never explained or documented any repair expenses.  The apartment sits now, almost 3 years later, as storage for odds and ends and paint, tools, unused carpet and so on. No one has ever lived there since I moved.”

At the Senate Judiciary Hearing Sen. Mark Leno (D – San Francisco) emphasized how many tenants across the state are suffering under the unfair treatment of tenant security deposits, and now is the time to act. Chair of the Committee, Noreen Evans (D – Santa Rosa), said that she herself had experienced unfair deposit withholding as a renter and felt this was an important bill to pass. Votes in favor were Sen. Evans, Sen. Bill Monning (D – Monterey), Sen. Ellen Corbett (D – East Bay), and Sen. Leno.

Supporters and advocates who could not make lobbying efforts participated in the “Day of Action” by writing letters and making calls to their senators. SB 603 now moves to the Senate floor where a vote is expected before the end of May.

The real estate industry has lobbyists every day in the State Capitol, many of whom are shameless about spreading misinformation and trying to intimidate Democratic legislators in voting against tenant protections.  With your help, we can make sure that Sacramento listens to the state’s 15 million renters – by voting “yes” on SB 603. We need every tenant in California to call their Senator NOW!

To learn more about SB 603 – Security Deposit Fairness visit:
YourDeposit.org, Estudinero.org, or follow the campaign on Twitter @EndDepositTheft

Check out all our photos from Lobby Day on Facebook.

Check out all our photos from Lobby Day on Facebook.

Senator Leno Introduces Bill to Promote Fair Treatment of Tenant Security Deposits

Senator Mark Leno (D - San Francisco) has announced the introduction of SB 603, a bill to promote fair treatment of tenant security deposits. SB 603 would require deposit funds to be held separate accounts, require interest payments to tenants on any funds held, and impose penalties if deposit funds are improperly withheld at the conclusion of a tenancy.

"One the biggest complaints California's 15 million renters voice when a lease ends is that they have little recourse in dealing with a landlord who refuses to return their deposits," said Senator Leno, D-San Francisco. "At a time when deposits can be $5,000 or more, the failure to pay interest or properly return a security deposit can be a significant and unnecessary financial burden on many renters. SB 603 protects tenants in this situation by encouraging landlords to return security deposits in a timely manner, as required by law," he said.

SB 603 is co-sponsored by Tenants Together, Western Center on Law and Poverty and California Rural Legal Assistance Foundation. The bill responds to widespread complaints from tenants across the state that their deposits are unfairly withheld. According to a recent survey of Tenants Together members, 60% reported that some or all of their security deposit had been improperly withheld.

"It's gotten so bad that tenants paying their security deposits don't ever expect to see that money again," commented Dean Preston, Executive Director of Tenants Together, California's statewide organization for renters' rights. "California's 15 million renters deserve better when it comes to the billions of their dollars being held as deposits," commented Preston.

Security deposits are among the largest financial assets, and sometimes the only asset, that many tenants have. Deposits can be thousands of dollars, particularly in Senator Leno's 11th Senate District that encompasses San Francisco.

Brain Augusta, Legislative Advocate at the Western Center on Law and Poverty, noted the unfairness of depriving tenants of interest on deposits. "Landlords who hold tenants' money, sometimes for years, should be required to pay the renter interest," said Augusta. "This isn't just a landlord-tenant issue. It's about basic consumer protection." Currently, only a handful of jurisdictions in California require that tenants be paid interest on security deposits.

The cause has quickly attracted broad support. Tenants Together recently launched www.YourDeposit.org, a new website to educate tenants and protect deposits. Already, 20 community organizations including tenant groups, unions, civil rights groups, and consumer advocates have signed onto the effort.

SB 603 will be heard in the Senate Judiciary Committee this spring.