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Even Though It Was Voted Down Last Year, CA Governor Signs Rent Increase Cap Bill

“Last year, voters rejected a statewide ballot initiative that would have expanded rent control statewide.” Yet here we are with the state legislature and Governor doing precisely what the citizens rejected.

This is one of many reasons why the recall petition against Governor Newsom is gaining steam.

Rent control will only increase homelessness because it doesn’t address the real problem, that it’s impossible to build economically when zoning boards routinely refuse permits and codes are too tangled to comply with.

Economics lesson 1A: Rents are high and rising because demand exceeds supply. Capping rent increases guarantees that the supply of rental units will not increase but decrease, and the properties still available will deteriorate due to a lack of revenue to maintain them.

Democrats in California spent over one billion tax dollars over the last year on the homeless, in San Francisco, the number rose 17% while Alameda County, which includes Oakland, saw a 43% increase. Homelessness grew 42% in San Jose over the past two years and 31% in Santa Clara County, the heart of Silicon Valley. So their system is working. (sarcasm)

California will limit rent increases for some people over the next decade after Democratic Gov. Gavin Newsom signed a law Tuesday aimed at combating a housing crisis in the nation’s most populous state.

Newsom signed the bill at an event in Oakland, an area where a recent report documented a 43% increase in homelessness over two years. Sudden rent increases are a contributing cause of the state’s homeless problem, which has drawn national attention and the ire of Republican President Donald Trump.

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“He wasn’t wrong to highlight a vulnerability,” Newsom said of Trump’s criticisms to an audience of housing advocates in Oakland. “He’s exploiting it. You’re trying to solve it. That’s the difference between you and the president of the United States.”

The law limits rent increases to 5% each year plus inflation until Jan. 1, 2030. It bans landlords from evicting people for no reason, meaning they could not kick people out so they can raise the rent for a new tenant. And while the law doesn’t take effect until Jan. 1, it would apply to rent increases on or after March 15, 2019, to prevent landlords from raising rents just before the caps go into place. [Associated Press]


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This law does nothing but allow the landlords to raise rents by 5% every year. If your rent is $2000 today the following year, it will be $2100. How many people are getting raises that will increase their pay by $100 a month in perpetuity? I mean, it’s not like all other bills are staying stable during this time.

Watch for a growing scarcity of rental housing. No one invests their money so that they will be able to subsidize others. The exemption for newer housing won’t help, as prospective landlords will realize that the exemption can be eliminated whenever political advantage requires it.

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Whenever the government gets involved, no matter how benevolent or moral the intention may seem, it always has the opposite effects. Minimum wage is an example, Social Security being another.

This is just one more policy that at face value has good intentions, but ends up only increasing the wealth/poverty gap. Not to mention, the government has no business getting involved involuntarily contracts between two people/parties.

Limited government was the aim and intent of the Founding Fathers.

This is what happens when you elect Democrats. They control everything according to their liberal agenda, are answerable to no one because Democrats are very ovine, and will do nothing to stop the drive to socialism. This law is patently illegal according to U.S. Supreme Court rulings and precedent, and let’s hope that the State has to pay billions in punitive damages.

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