May 25, 2010 -- Although he thinks he could get the decision overturned with a lawsuit, Rent Control Board Commissioner Robert Kronovet announced at a meeting last Thursday that he would abide by a State commission ruling that he could not participate in the annual vote on the maximum rent increase landlords can place on rent-controlled apartments.

However, Kronovet and the other commissioners instructed the Board’s general counsel to ask the California Fair Political Practices Commission (FPPC) to reconsider the decision.

Kronovet, whose ownership of a six-unit Santa Monica apartment was the FPPC’s reason for saying he had a conflict, announced he would not pursue litigation because he did not “want to place this Board in harm’s way and waste even one more of the taxpayers’ money.” He also said he did not want to give his opponents “additional ammunition to attack” him.

The FPPC’s ruling came late last month after the Board’s general counsel, Michaelyn Jones, had asked for an opinion about Kronovet’s participation in the rent-increase vote. She said she made the inquiry because last summer the FPPC decided a San Francisco supervisor who is a landlord could not vote on a proposed home rental law for that City.

At the first meeting following the FPPC’s decision, Kronovet announced he would not increase the rent for his tenants for 2010-11 to remove any potential financial incentive he had in the vote.

Jones said at last Thursday’s meeting that she had been in touch with the FPPC since Kronovet’s made that statement, and was told it did not change the ruling. But she specified the FPPC does not make “binding decisions over the phone,” so there is the possibility a new ruling could come after further consideration.

In addition to her writing a letter as instructed by the Board, Kronovet has also already contacted the FPPC in writing to plead his case. It is unlikely even an FPPC reversal would allow Kronovet to vote on the item this year. But it could give him the ability to vote in future years. Kronovet voted on the rent increase last year.

At last week’s meeting, a proposed 2 percent hike on the maximum allowable rent was on the agenda for discussion. Prior to stepping off the dais, Kronovet made a speech regarding what he called “blatant censorship” by the FPPC that prevented him from participating in the discussion.

“We (Kronovet and the “legal team” he had review the FPPC letter) believe not only does the FPPC not understand Santa Monica laws, but it also does not respect the will of the electorate,” said Kronovet, who added that this decision prohibited voters who selected him for the Board from getting their voices heard through him.

He continued, “Unwarranted attacks on small business folks like myself are a large part on why the State of California is out of control and why, frankly, we are running out of money.”

Kronovet’s election to the Rent Control Board in 2008 was a huge upset. He became the first person to win a seat on that body without having the endorsement of Santa Monicans for Renters’ Rights (SMRR). His status as a landlord opposed to rent control and a registered Republican also added to his uniqueness. Kronovet has stated he plans to run for City Council this fall.

The proposed 2 percent increase, which will go before the Board in a formal hearing on June 1, is based on a formula that takes into consideration increased operating expenses for landlords, including general changes in costs and inflation-related adjustments. For the first time since 2002, the proposed increase takes into consideration property tax changes.

Property taxes’ inclusion in maximum rent charges allowed by the City is the subject of a lawsuit filed earlier this month by Action Apartment Association, which represents apartment owners in Santa Monica and West Los Angeles. The group alleges landlords should be able to charge the tenants the full amount covering the cost of property taxes that went into effect after local rent control began in 1979.

Most of the commissioners did not comment on the rent increase proposal, but rather asked some clarifying questions. Commissioner Zelia Mollica said she was concerned about the effect on low-income people.

“I know 2 percent doesn’t sound like too much,” Mollica said. “But I do know that for some people on a fixed income, 2 percent is a little high in this economic atmosphere that we are in.”

Rent Control Administrator Tracy Conden said she understands the concern. She noted that low-income seniors and disabled persons can get a waiver from the rent control registration fee, a $13 monthly charge applied to landlords that is handed down to the renters. For more information on the waiver, call (310) 458-8751.