Government Affairs' Blog

Red Alert: Oppose Proposed San Diego 'No Fault Eviction' Moratorium

Written by Ryan Maxson, Vice President of Government and Public Affairs | Mar 31, 2022 10:06:20 PM
San Diego City Council to consider Emergency 'No Fault Evictions' Moratorium on April 4

The San Diego City Council is considering a proposal to impose new evictions restrictions on residential properties. These provisions will make it all-but-impossible to terminate tenancy for the purpose of owner-occupancy, transactions and substantial renovations. This item has no specific end date and will be considered on April 4 as an emergency ordinance that will take effect immediately, if approved. Read the ordinance here (click details for item 200).

We need your help to request that City Council oppose this ordinance!   

HOW YOU CAN HELP:

Please complete the following:

1. Submit an e-Comment (do this today!)

Click here to submit comment via webform
Meeting date: April 4, 2022 
Comment type: City Council
Agenda item #: 200
Comment (be sure to personalize):
"I request that you oppose Agenda Item 200, which would place new far-reaching restrictions on the ability of property owners to terminate tenancies. As a real estate professional, I know the impact of such an ordinance could have on our communities and property owners, both of which are put at risk by this ordinance.

The effects of this ordinance will be felt hardest by our independent 'mom-and-pop' property owners, including seniors and military families, who will be forced out of business and replaced by well-funded real estate investment firms. We must protect our 'mom-and-pop' owners!"

Note: As there have been no hearings on this issue, we need to do everything we can through our comments to educate the Councilmembers on the disastrous consequences of this ordinance. Try to include a personal story of how this impacts you or one of your clients. For example, share why someone would need to expeditiously move back into their property and/or sell their home (such as financial issues). As shared below, the ordinance would require a six-month advance notice to move back into the property or take it off the market. There are no exemptions for military, seniors or anyone else who could be most impacted by these provisions.

2. Provide Public Comment (April 4 at 2:00 pm)

Webinar/Phone-in Testimony: 

Members of the public can access the meeting online using a desktop computer, laptop, tablet, or Smartphone, or by calling into the meeting using a Smartphone, cellular phone, or land line:

KEY PROVISIONS

The proposed ordinance would do the following:

  1. Eliminate lease terminations in most situations and impose new advance noticing requirements for the following:
    • 6-months advance notice for withdrawing units from the rental market. This is limited to only situations in which all units on a parcel are being removed from the rental market.
    • 90-days advance notice for occupation of the unit by the owner or the owner's parent or child.
  2. Limit lease terminations for substantial renovation to only situations in which the work is in response to a government or court order or where an immediate health or safety risk exists.
  3. Eliminate the ability of the owner to terminate the lease for the purpose of a transaction.
  4. Cause the ordinance to remain in effect for 60 days after the end of the state of emergency. Therefore, there is no specific date for when this ordinance will expire!

KEY CONCERNS

This ordinance is being rushed to a vote without any hearings or understanding of its impact on housing providers.

The language of the ordinance was only made available on March 30 and will already receive a vote on April 4. Council President Sean Elo-Rivera, who introduced the ordinance, did not appear to consult with any real estate professionals and instead introduced an ordinance that was likely written by the Los Angeles-based special interest group ACCE.

This ordinance will worsen our housing supply crisis and limit the availability of safe, affordable housing.

At a time when families need clean, safe and affordable housing the most, these regulations will decrease investments in housing, driving up costs and prolonging the current inventory crisis which will harm renters and push homeownership further out of reach. 

This is unfair to single family homeowners and mom-and-pop housing providers!

The majority of housing providers are mom-and-pop landlords - many of them seniors -who were already required to forgo rent due to COVID. Our mom-and-pop and single family property owners do not typically have significant cash reserves for unexpected emergencies and often times must put their home up for sale or plan to re-occupy their rental property during times of financial difficulties. This bill would make it all-but-impossible for our property owners to respond to such situations!

These regulations will obstruct home sales and bring portions of the real estate market to a stand-still.

In situations where a tenant is in place, the ordinance would prevent new buyers from being able to remove the tenant and occupy their own home (without first providing 6-month advance notice). Even if the purchase was made with the intent of occupying the home as a primary residence. Furthermore, this also calls to question potential liability and disclosure requirements and could even prevent prospective buyers from qualifying for certain financing, including VA loans, that require owner-occupancy. This is unfair to prospective buyers, especially those from our military community.