Sacramento Report

by Monica Williamson

On March 26, 2007, more than 800 CAA members came to Sacramento to inform and educate lawmakers. This gathering of industry professionals made a huge impact and helped to educate members of the Legislature that the slogan for the day couldn’t be more accurate: “We House Californians.”

Conference attendees participated in a short conference covering the legislative process and CAA’s 2007 legislative agenda. The group heard not only from industry speakers and CAA staff, but also from the accomplished Assembly Republican Leader Michael Villines (R-Fresno), as well as California Attorney General Jerry Brown.

CAA President Scott Monroe kicked off the morning with some important facts about the rental housing industry:

• The value of all apartments in California totals roughly $233 billion.
• Annual gross potential rental revenue generated totals $43.1 billion.
• Approximately 70% of the rental units in California are in buildings of less than 100 units.
• Annual tax revenue (contribution) to the state totals $2.3 billion.
• Annual expenses and expenditures (purchasing power) totals $15.5 billion.

Assemblyman Villines stated how important it is to participate in the legislative process in Sacramento. He also underscored the importance of building personal relationships with elected officials by partnering together on local events in the district.

Following Villines’s address, conference keynote speaker, former Governor, former Oakland Mayor, and current Attorney General Jerry Brown joined the group. Brown shared personal anecdotes and drove home the point that people of good will can have differences of opinion, but they can still come together to accomplish important things.

Brown spoke of the days when legislative leaders would meet away from the Capitol to decide which bills would die and which ones would make it through the process. All of this has changed, he said. Now it takes hard work and grit to make something happen.

After the conference portion of the day, CAA members made their way to the Capitol to meet with legislators and staff to discuss the priority bills for this year. Delegates covered three priority bills.

AB 481 is the CAA-sponsored eviction delay bill that would require tenants who defend against an unlawful detainer for nonpayment of rent by alleging habitability violations to demonstrate good faith by declaring when (or even if) the owner was previously notified of the alleged defects, and to declare under penalty of perjury that the unpaid rent is available. CAA contends that if the defense is about the condition of the unit, there should be no reason why the tenant would not have the rent available.

AB 1197 is the CAA-sponsored Megan’s Law bill that would create a legal presumption that a property owner who denies tenancy of a sex offender has done so to protect a person at risk. The effect of this bill would be to shift the obligation to the sex offender to prove he does not pose a risk to other tenants in the building.

The final highlighted bill was SB 464. CAA members expressed their opposition to this bill, which proposes changes to the state’s Ellis Act to allow local governments to require rental property owners to own their property for a minimum of five years before changing the building’s use. The bill would effectively force a person to remain in the rental housing business even where local laws are so restrictive that operating rental property is not economically feasible.

At the end of the day, CAA members hoped to impress upon legislators their commitment to the legislative process and, more importantly, their commitment to ensure quality rental housing for Californians. It was a very successful day.

According to every single individual who answered CAA’s survey at the end of the day, it was well worth their time and they will be back next year. They’ll have the ability to make good on that promise on Wednesday, March 26, 2008, the date for CAA’s next Legislative Conference.

The opinions expressed in this article are those of the author and do not necessarily reflect the viewpoint of SFAA or SF Apartment Magazine. Monica Williamson is CAA’s vice president of public affairs. Copyright © 2007 by SF Apartment Magazine. All rights reserved.