Page 41 - AAGLA-JULY 2022

Local Advocacy Update
Local Advocacy Update
TBy Danielle Leidner-Peretz, Director, Government Affairs & External Relations
he month of June began with a focus on the June 7th Primary Election, as some candidates had secured a majority vote and had been elected or re-elected while others are now headed for a run- off this November. We are also getting a glimpse into what lies ahead regarding the November 2022 ballot measures.
During the month of June, several localities have been discussing and/or placing ballot initiatives on the November 2022 Ballot too. In the City of Los Angeles, the “United to House L.A.” or so-called “Mansion Tax” ballot measure was certified and if approved by the voters, it would increase transfer tax rates on properties sold between $5 million and $10 million to 4.0% from the current 0.45%, while those valued at $10 million or more would be charged a rate of 5.5%. In Culver City, the City Council is moving forward with an initiative to increase the Business License Tax rates and to update various sections of the City Code for placement on the November 2022 Ballot. In West Hollywood, the City Council discussed and rejected placement of a residential and/or commercial vacancy tax on the November Ballot.
Rent control is also appearing on the November 2022 Ballot, with a measure going before Pasadena residents; and in Santa Monica, the Santa Monica Rent Control Board is recommending several ballot measures for the City Council’s consideration that would amend the City Charter’s rent control provisions.
As it relates to moratoriums on evictions and/or rent increases, while the City of Los Angeles and Los Angeles County maintain their local moratoriums, Beverly Hills’ moratorium on evictions and rent increases expired on May 31, 2022 and Pasadena’s residential eviction moratorium expired on June 30, 2022. We encourage members with property in the cities of Beverly Hills and/or Pasadena to review the full details of the City’s ordinances, in combination with the applicability of the existing Los Angeles County Eviction Moratorium and potential applicability of the State’s COVID-19 protections. It is important that housing providers consult with an attorney regarding specific eviction questions and the specifics of their situation.
Our Association is continually monitoring and advocating for our members’ interests in localities throughout Southern California on a multitude of critical issues affecting rental housing. Summarized below are some of the issues that are likely to be coming up, that were recently considered or that have been approved in Los Angeles County, or in the cities of Los Angeles, Culver City, Pasadena, Santa Monica, Ventura, and West Hollywood.
A Ballot Measure Seeking to Impose a Special Tax on Real Property Transfers of Over $5 Million Advances to the November 2022 Ballot
A City of Los Angeles ballot measure, “United to House L.A.” would impose a special transfer tax on real property transactions in excess of $5 million to help fund affordable housing and renter assistance programs. As this is a tax measure, it requires voter approval. If approved by voters, the sale of City of Los Angeles properties for between $5 million and $10 million would be taxed at an increased transfer-tax rate of 4%, an increase from the current 0.45% rate, while those transactions valued at $10 million or more would be taxed at a new 5.5% rate.
As a procedural matter, the City Council must place the measure before the voters on a either a special or general election. Due to the cost of a special election, approximately $12 million, the City Clerk recommended that the ballot initiative be placed on the upcoming November 8, 2022, general election. At the June 15th City Council meeting, the Council approved submission of the ballot initiative for voter consideration on the November 8, 2022, general election.
The Apartment Association of Greater Los Angeles along with various coalition members are working to oppose the proposed ballot initiative and we are asking members to support our efforts at https://aagla.org/issuespac/. Help us defeat this detrimental proposal by ensuring we have the financial resources needed to prevail.
City of Los Angeles Engages in Stakeholder Discussions on Building Decarbonization
The City’s objective of achieving zero carbon emission buildings is a complex issue and raises numerous concerns for the rental housing industry, among them, the significant fiscal implications on owners of the City’s existing, older rental properties where extensive and costly renovation and upgrades may be required. The Association has raised
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