AIDS HEALTHCARE PERSPECTIVE ON COSTA HAWKINS
Written by Peter Strauss of Iconic Investments
Over the last year, I have written a number of articles about the potential repeal of the Costa-Hawkins Rental Housing Act and the anti-development Measure S and the effects these initiatives would have on landlords and developers. I’ve always been curious why a billion-dollar nonprofit like the AIDS Health Care Foundation (AHF) is involved in these issues at a local level. What is it about these issues that strikes a chord with Michael Weinstein of AHF? Why spend many millions of dollars to extend rent control laws and try to get "Yes" on Measure S? I asked various sources but could not find any answers. So, I decided to reach out to Michael Weinstein to get his perspective.
PETER STRAUSS: “I have written a number of articles about Costa-Hawkins and the involvement of the Aids Healthcare Foundation. I am frequently asked why the Aids Healthcare Foundation pays heavy focus on issues like Costa-Hawkins and Measure S. I have an audience of 10,000 apartment building owners, most of who are quick to criticize you for using funds that could be used to fight AIDS worldwide to fight rent control and development. What is your perspective so I can convey it to my audience?
MICHAEL WEINSTEIN: “We are a very large organization which spends only 2% of our budget on advocacy. Our mission is cutting-edge medicine and advocacy, regardless of ability to pay. Fighting for our patients' and employees' needs is our core mission. Five percent of our patients are homeless, and many of our employees are forced to spend more than half of their pay for rent or are forced to live further away from work. Recently, AHF purchased a 220-room SRO on Skid Row and a motel in Hollywood to house homeless individuals with chronic medical conditions. Homelessness is the most important social determinant of health, which must be looked at in a holistic fashion. AHF intends to be an important part of curing homelessness. The sole intent of the 10,000 apartment building owners is to squeeze every nickel they can out of their properties regardless of how much hardship it causes”.
After speaking with Weinstein, I understand his position, which is commendable. He wants to make a difference. I shared a personal story with him to illustrate that not all landlords are bad; there are good landlords out there. His response? “Good to know.”
COSTA HAKWINS - Not Dead Yet
There are two separate tracks to repeal Costa-Hawkins. The first is through the Legislature. The repeal measure was voted against in the Housing Community Committee on January 11, 2018, with a vote of 3-2. This would have required the approval of the Governor. The second is a Ballot Initiative, which is still alive and moving forward.
Ballot Initiative
Ballot initiatives give citizens of California the right to propose new laws and constitutional amendments without the support of the Legislature or the Governor. As we discussed in previous articles, this is where groups like the AIDS Health Care Foundation (Michael Weinstein), Eviction Defense Network and the Alliance of Californians for Community Empowerment come into play.
October 2, 2017: The “Affordable Housing Act” (Initiative Measure 17-0041) was born. The title and summary prepared by the AIDS Healthcare Foundation, which was submitted to the Office of the Attorney General, was based on these facts:
(1) Rents for housing have skyrocketed in recent years. Median rents are higher in California that any other state. (2) Median rents for a one-bedroom in California is $1,410, an increase of 4.5% in one year. (3) The federal government has concluded that rent is not affordable if renters spend more than 30% of their income on housing costs. (4) Workers earning minimum wage would need to work 92 hours per week to afford an average one-bedroom unit. (5) Three times as many Californians are living in overcrowded apartments compared to the United States as a whole. (6) A major factor affecting the housing crisis is the 20-year old Costa-Hawkins Rental Act Law.
December 27th, 2017: The legal analyst and Director of Finance prepared a fiscal impact report on state and local governments for the Attorney General.
Summary of Fiscal Effects: “Unknown, but potentially significant, changes in local government tax revenues. Net decrease more likely than net increase. Potential increase in local government costs of up to tens of millions of dollars per year in the long term, likely paid by fees on owners of rental housing.”
Stages of the Ballot Initiative
1: Write the text of the proposed initiative – (Completed)
2: Submit the initial draft to the Attorney General – (Completed)
3: Initiative petitions are circulated to collect signatures – (Cleared for Circulation)
4: Signatures are turned into County Election officials (Deadline is 6/25/2018)
5: Initiative will be Qualified or Failed by Secretary of State (TBD)
6: California Votes will approve or deny Ballot Initiative (TBD)
Iconic confirmed with Secretary of State Alex Padilla’s office that the Ballot Initiative has been cleared for circulation. The deadline to collect 365,880 signatures is June 25, 2018.
If the ballot initiative collects the required signatures, it will be on the November 2018 Ballot.
Iconic Investments
16530 Ventura Blvd Suite #409 Encino, CA 91436
W: www.iconicinv.com