The SF Examiner reports on the efforts of Supervisor Peskin to put a rental unit “vacancy tax” on this November’s ballot, for both residential and commercial properties. (San Francisco already requires registration and fees for vacant buildings.)
According to the Examiner, “Details are still being worked out, but the intent is to apply the tax to residential properties with three or more units. After six consecutive months of a vacancy, the property owner would pay $250 a day until the unit is leased”.
San Francisco’s ongoing efforts to create more housing has manifested in interesting ways over the years. Turning vacant units into residential rental units would obviously add to the rental housing supply. But whatever the actual language of the law, it is difficult to imagine that a special tax on those who refuse to enter the residential rental business is not a violation of the Ellis Act. (Buildings of this size would also need to register for the City’s gross receipts tax if they are used as rentals.)
SF Gate reports on the defeat of Prop. 10 at the ballot. The measure to repeal the Costa-Hawkins Rental Housing Act “fell behind early and continued to trail by a margin of about 65 percent to 35 percent throughout the night”.
Proposition 10 followed AB 1506 (2017), a legislative attempt at repeal, which failed to get out of committee.
For now, cities remain capable of implementing new rent control ordinances. However, Costa-Hawkins will continue to limit the extent of local price controls (as cities cannot impose price ceilings on “new construction”, apply “strict” vacancy control to empty units, or extend rent control to new tenancies in single family homes and condominiums).
This Monday, Michael Weinstein, president of the AIDS Healthcare Foundation, filed a proposed ballot initiative with Office of the Attorney General, aiming to repeal the Costa-Hawkins Rental Housing Act.
The ballot measure would send the issue of repeal directly to the voters, following the decision of Assemblymembers Chiu and Bloom to slow-track their legislative effort for repeal (AB 1506).
Continue reading “Costa-Hawkins Repeal” Effort May Be Heading Directly To Voters