Uniform Tenant Relocation Payments Proposed In Oakland

By DANIEL BORNSTEIN, ESQ.

[apss_share]

We were encouraged to recently report that Palo Alto’s foray into rent stabilization was quashed, thanks to common sensible Council Members and a phalanx of property owners in attendance, sporting “No Rent Control” stickers. 

 

This was a textbook case of what mobilized property owners can achieve when they let their voice be heard. 

 

There is no cause for celebration, however, as new laboratories in rent control sprout up like cannabis enterprises in the Bay Area. When property owners win one contest of sensible policy, a battle line is drawn with yet another initiative. 

 

None more onerous than a measure proposed by Councilmember-At-Large Rebecca Kaplan, who is advocating the City Council adopt the Uniform Residential Tenant relocation Ordinance. 

 

As its name implies, the sweeping Ordinance would set a uniform schedule of relocation payments throughout Oakland and extend relocation payments to tenants displaced by owner move-in evictions, as well as to tenants displaced by condominium conversions. It would also conform existing Ellis Act and code compliance relocation amounts to those in the uniform schedule. 

 

We’ve uploaded a copy of the memorandum here.

 

In her memorandum, Council Member Kaplan cogently lays out the problem. She cites a 2017 Mid-Year Rent Trends Report from Abodo, an apartment listings website, that ranks Oakland as the seventh costliest rental market in the country. She also attempts to strike an emotional chord by noting senior, disabled, and low-income tenants and parents will be especially hard hit by displacement.

 

However artful she is at chronicling the problem, Council Member Kaplan incorrectly assigns blame to rental property owners that are themselves a victim of the same challenges, risings costs and dim picture she paints. 

 

 

As we noted in an earlier post, most Oakland landlords are responsible “mom and pop” landlords that are the bedrock of our community, add tremendous value to their tenants, and are the biggest engine of affordable housing.

 

These studious rental property owners, none the less, must make a profit and many will pass off the perceived risk of relocation payments to the same tenants that the Ordinance was aimed to protect. 

 

The proposed measure also turns the meaning of home ownership on its head. The American Dream of owning property should be embraced by those that pursue the dream with vigor, desire and penny-pinching thrift. After realizing their dream and making a huge investment, they should not be locked out of their own home. 

 

Oakland is near and dear to us and we are buoyed by the respect this beloved city is earning as an emerging force throughout the Bay Area. It is not a panacea, but the needle of progress in Oakland is moving in the right direction. 

 

The proposed Ordinance does not help Oakland’s trajectory, it only stifles progress and it should not become yet another failed experiment in rent stabilization policy. 

 

If you found this article to be informative, follow us on Facebook to continue the conversation and get the latest news and insights impacting Bay Area property owners and real estate professionals.

 

As the founding attorney of Bornstein Law, Broker of Record for Bay Property Group and expert witness, Daniel Bornstein is a foremost and well-respected expert in landlord-tenant disputes and other property management issues with over 23 years of experience in handling real estate and civil litigation related disputes in and throughout the Bay Area. More than a litigator, Daniel manages rental properties, assists in completing real estate transactions and is well known for his educational seminars. He is always eager to answer questions and engage with Bay Area landlords, property owners and real estate professionals. Email him today.