Sacramento Report
By Ron Kingston

Just When You Thought the Waters Were Safe

The next time you sit back in your chair and wonder about the type of government policies and actions that would provide an excellent business environment for landlords you may find yourself searching long and hard after the following commentary about the most important bill of the year for the tenants that is pending before the California Legislature.

Senator Shelia Kuehl is carrying a bill that would compel every residential landlord to continually stay in business for no less than five years. Slight changes in ownership such as order by a court, dissolution of marriage, creation of living trusts, marriages and similar changes would not be exempt from the law. Even if there was a death in the family and you inherited the rental property, you will be subject to the five-year time clock which will start all over again from the date of the change in ownership. And if that was not bad enough, you will not have any right to plead a hardship to any governmental body.

Even if there is a fire, flood, or earthquake, the city will order you to make all of the necessary improvements, regardless of cost.

Now you may think that is a terrible bill.

It does not end there however. If there is any tenant that is 62 years of age or who is disabled and has lived in the property for for at least one year every tenant in the building will be given one year notice to vacate prior to a landlords right to go out of business.

Can you name any private business that is forced by government fiat to remain in business notwithstanding the needs of the landlord or his or her family, the condition of the property?

Now you may ask yourself, will this bill decrease property values, reduce the maintenance and appearance of rental property, make it more difficult to obtain a loan on a property when someone is buying the property or wanting to make necessary improvements? You bet it will!

The bill is a direct frontal attack on property owners that legitimately want to go out of business and it is a message to developers: think twice if you want to build rental housing in our beautiful state.