Measure H will not increase housing affordability, severely restricts apartment owners’ ability to operate and creates unaccountable board that sets its own budget and salary
The Pasadena Chamber of Commerce Board of Directors at its most recent meeting voted unanimously (with one abstention) to oppose passage of Measure H on the November ballot. “Measure H is riddled with problems,” said Pasadena Chamber President and Chief Executive Officer Paul Little. “Worse, it will not have any of the purported benefits.”
Measure H would create an unelected board that would determine rent adjustments; conduct investigations; adjudicate petitions; and establish regulations, landlord fees and penalties for noncompliance with the Measure. This board will not be subject to oversight by voters, the City of Pasadena or our City Council.
Apartment building owners cannot increase rents for covered units more than allowed by “annual general adjustments,” set at 75% of the CPI percentage increase. Each year effected apartment owners will fall farther behind as rent increases, by charter amendment, are not even allowed to recoup yearly cost increases. “Why would anyone want to own apartments in Pasadena if you cannot raise rents to compensate for cost increases?
The measure also allows for the filing of civil suits by tenants, the board or landlords.
Research and experience clearly show that rent control does not translate to rental affordability. In the local market, Santa Monica has had rent control in place for decades yet has the fifth highest rental housing costs in the US according to Apartment Guide and Rent.com.
Since existing rents are kept artificially low, any new units are priced much higher to guard against the imposition of limits in the future. Existing rent-controlled units see big increases that adjust rent to above market rates each time they become vacant. We see that happening in Santa Monica today. If Measure H passes in Pasadena, it will happen here, too.
Despite claims of the proponents, people who will be hurt by Measure H are those who have older buildings in Pasadena, mostly local owners of one or two buildings who rely on the income from their units to pay their bills. Those property owners have seen losses mount as a result of Pasadena’s eviction moratorium, rent freeze and other measures implemented to keep people housed during the pandemic that are just now expiring. Apartment owners are just now being allowed to collect past due rent and re-invest in building maintenance and upgrades.
Judging from experiences elsewhere, passage of Measure H would suppress the development of new rental housing units in Pasadena and lead to huge rent increases when rent-controlled units become vacant. Measure H would also likely increase the number of condo conversions. Worst of all, passage would create a self-governing board with no accountability to voters, the City Council or anyone at all.
Imposition of Measure H will decrease production of rental housing. Fewer units mean a tighter housing market which generates higher costs for renters.
Any apartment building constructed since 1995, including most of the corporation-owned large apartment buildings in Pasadena, are exempt by California law. That law, the Costa-Hawkins Rental Housing Act, was resoundingly reaffirmed by California voters in 2018.
An objective analysis of Measure H estimated the start-up cost at $310,000 and annual estimated costs of $5,453,460 based on the number of staff members required to support the rental board as well as board members’ salaries.
Pasadena does not need a rogue agency with a $5 million per year budget, taxing apartment owners as it pleases, setting its own salary and answerable to no one. Absent accountability and oversight, Measure H is an invitation to influence peddling and corruption.