Housing costs soar as rent control measures face backlash

During a recent government meeting, significant concerns were raised regarding the financial implications of proposed housing regulations, particularly in relation to older buildings subject to rent control. One speaker highlighted the exorbitant costs associated with rewiring these buildings and installing separate meters, which could amount to tens of thousands of dollars. This, they argued, would further burden the already high cost of housing.

The discussion also touched on the limitations imposed by the Costa Hawkins Rental Housing Act, which restricts the city’s ability to reduce the rent control period for new buildings. The speaker criticized the current provisions, suggesting that the city should consider reforming Costa Hawkins to allow for a more flexible 15 to 20-year standard. However, they noted the absence of a feasibility study to support the claim that such a timeframe would effectively encourage new housing construction.

Additionally, the speaker expressed skepticism about a recent rent cap proposal, which would limit annual rent increases to 3%, significantly lower than the current cap of 7% under the Berkeley Ordinance. They argued that this could hinder housing providers' ability to maintain their properties and keep pace with inflation, ultimately impacting the quality of housing available.

Concerns were also raised about a provision requiring landlords to issue a three-day notice for rent payment only after a tenant has accrued one month of fair market rent owed. This aspect of the proposal was seen as potentially problematic for housing providers.

Overall, the discussions underscored the complexities and challenges facing housing policy in the context of rent control and the need for careful consideration of the financial realities involved.