SD Council Committee Approves Regulating Software

SCRHA would like to thank all of the property owners, managers, and suppliers who wrote to the members of the San Diego City Council Rules Committee regarding the item to regulate the use of price setting algorithms in rental software platforms. While the committee approved directing the city attorney's office to craft an ordinance, the lack of stakeholder outreach was at the forefront of the discussion.

SCRHA opposed the item and asked that the committee take no action until stakeholders were consulted. There is little data to suggest that these programs are impacting rental rates in San Diego. Furthermore, the action does nothing to address the root causes of the city's housing crisis. 

Councilmember Raul Campillo was the lone NO vote on the item and wisely asked numerous questions about the legal ramifications of a local ordinance while litigation is pending. 

While committee members supported moving the item forward, they all expressed their desire to see engagement with impacted stakeholders prior to drafting. Council President Sean Elo-Rivera, who brought the item forward, promised stakeholder involvement. However, we are cautiously optimistic since Elo-Rivera and his allies are using loaded terms like “rent rigging” and “price gouging,” without any real evidence. 

SCRHA again appreciates members moving quickly to make their voices heard in light of a late docketing of the item and no outreach to industry associations. Moving forward, SCRHA will be surveying members for more information regarding their usage of revenue management software and how possible regulation might impact their businesses and properties. 

The misunderstanding of these technologies is clear. Removing these tools won't fix the housing crisis; it will only create new challenges for those working to provide quality rental housing. SCRHA will keep members updated when there is movement on the issue.