Rent Control Board Raises Maximum Rent by 3.2 Per Cent

By Jason Islas
Special to the Lookout

June 13, 2011 – The Rent Control Board approved a 2011 General Adjustment (GA) Thursday, allowing Santa Monica landlords to charge a maximum 3.2 per cent rent increase with a $52 ceiling – the highest rent hike since 2006.

Board member Todd Flora cast the sole vote in opposition, saying, “I'm not comfortable with these rate increases.”

Though Board member Marilyn Korade-Wilson agreed that the increase was steep, she countered, “I've been convinced this is what is required to meet our obligation.”

This year, City staff included property tax assessments when calculating the recommended GA.

City Administrator Tracy Condon said that the high increase was a result of the inclusion of this new criterion. “We anticipate it won't have the same impact in the future,” she told the Lookout Friday because “in the future, the board will be looking at the changes in assessment.”

In a May Rent Control Board meeting, staff recommended a 3.5 percent increase, but they revised their recommendation downward based on concerns voiced by board members.

The proposed adjustment brought out many members of the Santa Monica community. Public discussion went on for two hours and included property owners and renters alike.

Both sides expressed disappointment with the proposed GA, although for different reasons.

Planning Commissioner and former Rent Control Board member Jennifer Kennedy suggested adjusting the rent ceiling downward because she thought the $52 ceiling was too high.

“If there are increases, they should be as minimal as possible,” said Bill Neko, a renter. “Due to every annual increase, my rent has basically doubled,” he added. He went on to say that rent increases have a negative effect on the community.

His comments were met with applause from the audience.

Bill Dawson, a property owner said he was “disappointed” that the original staff recommendation was revised downward. “My bills haven't gone down,” he told the Board.

Rosario Perry, a local attorney who has represented landlords in court, said that staff had “reverse engineered” the GA proposal by first deciding on a number and then shaping the methodology to get that number.

Korade-Wilson called accusations that the commission had pressured staff “incorrect.” Condon added that the process through which the staff revised the original GA had been entirely appropriate.

Council Member Kevin McKeown also spoke Thursday night. “We are a city that has quite deliberately maintained our diversity,” he said as he asked the Board to vote with that in mind.

When it came time to vote, the board members split the issue of the GA and the rent ceiling.

Board members Christopher Braun, William Winslow and Korade-Wilson voted for the 3.2 percent increase, with Flora voting against it and Board member Robert Kronovet recused himself due to a Fair Political Practices Commission ruling that bars him from voting on rent increases.

The rent ceiling was passed unanimously.

This is the largest rent increase since before the recession began, when the Board approved a 4 per cent GA in 2006.

“I'm not comfortable with these rate increases.” Todd Flora

“My bills haven't gone down.” Bill Dawson