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Silicon Valley & Peninsula Multifamily ENews – May 2017
Silicon Valley & Peninsula Multifamily eNews
Welcome to the Silicon Valley Multifamily Group monthly eNews. This newsletter provides a collection of multifamily related articles and insights from various industry publications to help you as a building owner have a better understanding of the market. This newsletter is distributed with no obligation to multifamily property owners and investors in Santa Clara and San Mateo counties. If you would like to see specific information in this newsletter, or not see this newsletter at all, please let us know. We welcome your comments.
San Jose City Council Approves Tenant Protection and Ellis Act Ordinances
On April 18, 2017, after four hours of public testimony, the City Council voted to return with a Tenant Protection Ordinance (TPO) that includes just cause protections without enrollment requirements. The direction given stated that the protections would commence at the beginning of tenancy for all apartments covered by the prior version of the proposed ordinance reviewed by the City Council on April 18, 2017. Staff was also directed to prepare an urgency ordinance to allow protections to be implemented immediately. The City Council will be considering the proposed TPO and the extension of the Interim Apartment Rent Ordinance at the May 9, 2017 City Council meeting.
On April 18, 2017, the City Council recommended approval of the Ellis Act Ordinance, which provides relocation benefits for tenants when the landlord withdraws rent stabilized buildings from the rental market. On April 25, the City Council adopted the Ellis Act Ordinance. The new requirements will go into effect on May 25, 2017. read more
San Jose poised to adopt immediate ‘just cause’ policy
and consider lowering rent cap to 2-3%
Presenting a double threat to rental housing owners, the San Jose City Council on Tuesday, May 9, is expected to immediately impose a “just cause” eviction ordinance and consider adopting a significantly tighter cap on annual rent increases. Attend Tuesday’s council meeting and help CAA put the brakes on the following two draconian policies.
Emergency Just Cause Ordinance: This ordinance would implement “just cause” the day after council approval. This needs eight votes to pass, which means if only four council members vote no, it will not pass. With such a drastic change to existing law, the council should include an implementation period so those unaware of the law avoid the risk of violating it. Ask the council to reject the urgency ordinance.
San Francisco-style Rent Control: Last year, the City Council lowered its rent cap from 8 percent annually to 5 percent. Based on comments by newly elected council members, however, it appears the city will lower the cap again to track with the consumer price index (CPI), which hovers between 2 and 3 percent. Ask the council to keep the rent ordinance “as is” and refrain from changes until they have been properly vetted.
Immediate implementation of “just cause” eviction controls and the implementation of inflation-based rent control ignores the direction of the previous council and amounts to an attack by a wing of the council on the rental housing industry. Earlier this year, the council voted to take recommendations from the Housing Department and pursue a simpler form of just cause, however, it is now poised to immediately adopt a much more punitive version. The current council majority has openly expressed its lack of concern over how property owners would be affected.
Speak Out Against This Policy!
Emergency Just Cause Ordinance
May 9th at 3:00 p.m.
City Hall Chambers:
200 E. Santa Clara St, San Jose
Park under City Hall on 6th Street or
at the Garage on 4th and San Fernando
Resident Manager Compensation Law Change
July 1 is the date that a number of cities, such as San Francisco, Pasadena, San Jose, Los Angeles (and certain portions of Los Angeles County), among others, increase the minimum wage rate payable to resident managers. read more
Bay Area Hiring Boom Eases Downturn Fears
The Bay Area gained more than 12,000 jobs in March in a hiring surge led by the East Bay and Santa Clara County, state jobs data showed Friday, easing concerns about an economic slowdown. Santa Clara County’s strongest sectors were construction, which gained 1,500 jobs, technology which added 1,400 positions and health care, which added 1,100. read more
San Francisco & San Jose Ranked Top Rental Markets Top 10 One Bedroom Median Rent Prices
1. San Francisco $3,370
2. New York City $2,910
3. San Jose $2,260
4. Boston $2,200
5. Los Angeles $2,090
6. Oakland $2,090
7. Washington $2,060
8. Seattle $1,850
9. Miami $1,800
10. Honolulu $1,800
Source: Zumper read more