Update: Supervisors Pass Corporate Landlord/Homebuyer Proposal with Amendments

July 16, 2024

Update: Supervisors Pass Corporate Landlord/Homebuyer Proposal with Amendments

In a 3-1 vote, the County Board of Supervisors passed the proposed ordinance to Fight Back Against Corporate Homebuyers and Wallstreet Landlords. Terra Lawson-Remer brought the item forward and made a motion to support. Monica Montgomery-Steppe seconded the motion. During discussion, Jim Desmond indicated he was not opposed to the spirit of the proposed law but thought that there should be analysis (option 1) prior to proceeding with the litigation and ordinance creation component. He said he would support the proposal with changes that Lawson-Remer accepted.

The County will conduct research on corporate ownership of single-family homes. Desmond asked that there be a threshold, at least 25 homes or more, and that condos and townhomes be included. Once the analysis is complete and brought back to the Board, Supervisors will then decide on proceeding with recommendations 2 and 3 (see below). Joel Anderson was a staunch "NO" noting that this will do nothing to create homes. Chair Nora Vargas was absent from today's meeting. SCRHA was hopeful that Supervisor Desmond would vote against the proposal in its entirety which would have meant it would have failed passage. 

SCRHA will reach out to County staff and work to be a stakeholder in an effort to ensure that owners and managers of rental properties have a voice in this process and aren't regulated unfairly. It is unfortunate that some Supervisors ignored the warnings from landlords and industry representatives and instead focused on the one corporate landlord that tenants' rights group are targeting. 

Thank you to all the members who attended the meeting, submitted eComment, and called in. Far more comments were received in opposition than in support!

July 15, 2024 - Action Alert

San Diego Board of Supervisors Voting on “Fighting Back Against Corporate Homebuyers and Wall Street Landlords” Tuesday (7/16) at 9 AM

SCRHA found out late last week that the San Diego County Board of Supervisors will be considering an item that could significantly impact the rental housing community and housing opportunities in the San Diego Region. Click here to view the agenda. 

 SCRHA is opposed to Item #17 on the agenda. No industry input was sought prior to the introduction of this item. It borrows on headlines rather than facts and proposes regulation, while targeted at so-called “Wallstreet Landlords,” that will likely have unintended consequences for property owners and management companies of all sizes. Read on for ways to participate and talking points.

Here is how you can make your voice heard at tomorrow’s meeting!

• Attend in person and share your concerns: Meetings are held in the Board Chamber (Room 310) of the County Administration Center, 1600 Pacific Highway, San Diego, CA 92101
• Call in with your comments: Click here to fill out a Request to Speak. Check the boxes next to “Item 17” and “In Opposition.” Follow the directions provided once you submit your request.
• Submit eComment: Visit this link. Fill out the information, select the oppose option, add your comment, then select “Submit Comment.”
• Watch the Meeting: Click here to learn how you can watch online or via cable.

Options under Item 17 and SCRHA Concerns:

• Analysis of Commercial Ownership of Single-Family Residential Properties in San Diego County. The County should utilize data from property tax rolls to estimate the share of single-family detached homes owned by owner-occupants versus commercial entities like LLCs, banks, partnerships and look at single family detached property sales over the past 5 years to see trends in ownership.

Concern: Many individuals and families own single-family homes and choose to rent them out once they upsize or downsize, or purchase homes as an investment opportunity. These homes help supplement small owner income, may be a sole source of income, or serve as their retirement plan. In other cases, these properties are intended to build generational wealth. Furthermore, many individuals, families, couples/domestic partners, structure their properties in LLCs, partnerships, and family trusts for tax and inheritance purposes. To assume that because title to property is in an LLC or partnership that it is owned by a so-called “Wallstreet Landlord” is not only inaccurate, but unfair.

• Exploring affirmative litigation options against corporate bad actors and institutional investment firms to address allegations of price gouging, tenant harassment, and price-fixing across the San Diego County real estate market.

Concern: The Federal and State Governments are already taking steps to prevent price-fixing and address competition issues. The County does not need to take on a duplicative role here. Furthermore, individuals and groups of people may pursue civil litigation for all the aforementioned issues. Expanding the ability for a housing provider to be sued impacts owners and managers of all sizes. Overregulation has forced and/or encouraged independent rental owners to sell their homes and rental properties. The County should not spend taxpayer dollars to pursue duplicative and frivolous lawsuits that drive housing providers out of the market and increase the cost of housing.

• Explore opportunities for local ordinances and legislation that would address the increasing threats to renters, single-family homeowners, and mom and pop landlords posed by unfair and anti-competitive practices.

Concern: There are already laws and remedy options for these issues. State law already provides a framework that prevents unlawful rent increases. Local ordinances will only complicate matters and increase litigation that does nothing to improve housing opportunities for individuals and families. Management companies of all sizes utilize programs that serve to do more than set rents, they also provide rent payment portals, include maintenance request options, and help streamline processes that provide a better resident experience.