Market Overview

Santa Monica City Council Unanimously Backs Prop 10 to End Skyrocketing Rents

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On August 14, the Santa Monica City Council voted unanimously to endorse Proposition
10
. The statewide ballot measure will allow communities to urgently
address California's housing-affordability and homeless crises by
limiting rent increases.

"Last night's vote of the Santa Monica City Council supporting
Proposition 10 and the Repeal of Costa-Hawkins further reinforces our
city's commitment to strengthening rent control. Higher rents are
increasing homelessness and creating more households that simply cannot
afford housing," stated Santa Monica City Council Member Sue
Himmelrich
.

According to Santa
Monica's City Rent Control Agency's 2017 annual report
, rents in
Santa Monica have skyrocketed since the anti-rent control Costa-Hawkins
act was passed in 1995. Before Costa-Hawkins was enacted, teachers,
nurses, seniors and working-class families could afford to live in Santa
Monica. A one-bedroom unit rented for $900 and a three-bedroom rented
for $1,460. After Costa-Hawkins, rents grossly jump to $1,907 for a
one-bedroom unit and over $3,200 for a three-bedroom.

According to the report, prior to Costa-Hawkins' passage, rents for 83
percent of units were affordable to working-class families. Today, less
than 4% of rent-controlled units can be considered affordable to a
family of 4 that earns $65,000. And, since Costa-Hawkins was enacted,
the city went from 10% market-rate housing to over 67% market rate.
These rates are unsustainable and fueling the housing-affordability and
homeless crises.

Santa Monica City Council Member Kevin McKeown said, "Even with
the strongest rent control law in the state, Santa Monica has seen
housing affordability undermined by twenty years of sudden jumps to
market-rate rents under Costa-Hawkins. Our vote to support Proposition
10 is a vote for working families, students, fixed-income seniors, and
everyone else whom Costa-Hawkins has been pricing out of Santa Monica."

Santa Monica, like the rest of California, is trapped in a cycle of
corporate greed as Wall Street speculators profit. Even worse, corporate
landlords Blackstone Group, led by CEO Stephen Schwarzman, and Equity
Residential, founded by Sam Zell, are funding the opposition campaign.
The Wall Street companies, who played a major role in creating the
nation's worst housing-affordability and homeless crises, are opposed to
the Prop 10 effort to address it.

Prop 10 would close the current loophole in California rent control laws
that allow rent increases to skyrocket in cities like Santa Monica.
Without rent control, corporate landlords and big real estate will
continue the rent gouging that is pushing people out of their homes and
communities. Passing Prop 10 will allow local governments to establish
strong rent control that would address the nation's worst
housing-affordability and homeless crises. In the 2018 homeless count,
Santa Monica saw a 4% increase in homelessness, according to LA Homeless
Service Authority.

Lead Strategist Joe Trippi of Yes on 10 said, "Thank you Santa
Monica City Council for taking bold action by endorsing Prop 10, an
issue which will bring parity to renters struggling to afford a place to
live in a community known for fair and democratic action. Returning
power to local communities by passing Prop 10 is the right thing to do.
Plainly speaking, the rent is too damn high."

The City of Santa Monica joins a large and growing coalition of labor,
housing advocacy, community, and civil rights organizations who support
Proposition 10, including the Cities of West Hollywood and Oakland: www.VoteYesOnProp10.org/endorsements.

Follow #YesOn10 on Facebook
and 
Twitter.

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