Measure C

Sacramento Rental Housing Board

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Would add an article to the City of Sacramento Charter to (i) create a new elected body (Rental Housing Board) with powers that include: setting rents, establishing regulations, establishing its own budget, charging fees to finance its operations, establishing penalties, conducting investigations, and adjudicating rent adjustments; (ii) set a base rent for all covered rental units within the city and cap annual rent increases; and (iii) limit landlords’ ability to terminate tenancies. Would supersede the Sacramento Tenant Protection Act, and thus that Act would no longer be effective if Measure C passes. Measure C requires a simple majority (50% + 1) to pass.

Fiscal Impact: Would impose a board-determined annual rental-housing fee on each landlord subject to the measure to fund the new Rental Housing Board's expenses.

Details

Pro/Con
Pro: 

Proponents of Measure C argue that the measure limits rent increases to inflation and prevents unjust evictions by requiring a reasonable cause to evict a renter; creates a democratically-elected, independent board that will balance the interests of landlords and renters alike; guarantees property owners a fair profit and allows them to evict problem renters while guaranteeing renters a predictable price; and protects renters and stabilizes Sacramento neighborhoods.

A YES vote on this measure means: A new elected Rental Housing Board would be created in the City of Sacramento.

YesOnMeasureC.vote (Campaign Website)

Con: 

Opponents of Measure C argue that the measure would override the progressive and balanced rent control reforms in effect now and make it more difficult to expand the existing housing supply; has no provisions to build more affordable or middle-class housing and does nothing to address homelessness; creates another layer of bureaucracy by establishing a new, elected rent board, which will require significant new costs and remove the City Council’s ability to deal with rent control issues and disputes; and two of the three sponsors of Measure C withdrew this initiative from the ballot because they supported the rent control measures now in place.

A NO vote on this measure means: A new elected Rental Housing Board would not be created in the City of Sacramento.

In Depth
In Depth:

Currently, Sacramento City Code chapter 5.156 (the “Sacramento Tenant Protection Act”) currently regulates rents and tenancies for certain non-exempt rental units. That Act caps annual rent increases but allows landlords to petition for relief from that cap; prohibits landlords from adjusting rents more than once per year; limits the circumstances under which landlords can terminate tenancies that have existed for more than 12 months; voids lease provisions that waive any provision of the Act; and provides that violations of that Act can result in criminal sanctions, civil actions, and administrative penalties. By its terms, Measure C “supersedes” the Sacramento Tenant Protection Act, and thus that Act would no longer be effective.

The main components of Measure C are:

  • Rental Housing Board. The measure establishes an elected rental-housing board that is independent of the city council, city manager, and city attorney, except by board request. Among other things, the board would be empowered to set rents and determine the permissible annual rent adjustment; establish regulations; conduct investigations; adjudicate petitions; and establish penalties for noncompliance with the measure of regulations.
  • Rent Regulation. Landlords may set initial rents at market rates. Landlords cannot increase rents for covered rental units except as authorized by the measure. Annual rate adjustments are tied to increases in the consumer price index (CPI), with a minimum increase of 2% and a maximum of 5%. Landlords may petition for a higher increase to ensure “a fair rate of return.” Tenants may petition for a rent decrease for the landlord’s “failure to maintain habitable premises” or a “decrease in housing services or maintenance.”
  • Eviction Protections. Landlords cannot terminate a tenancy unless one of nine specified conditions exists. Under four of those conditions, landlords would be required to provide relocation assistance of at least $5,500.

Source: City Attorney's Impartial Analysis of Measure C

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