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Written by Frank Lopez
The Gazarian Real Estate Center at Fresno State will be hosting a roundtable panel discussion regarding a rent control and tenant protection bill on Nov. 4 from 11 a.m. to 1 p.m.
Approved by the state Senate in September and signed into law by Gov. Newsom in October, AB 1482 bans property owners from increasing rent by more than 5 percent plus the local rate of inflation, and requires them to have “just cause” for evictions of tenants who have lived in a unit for at least a year.
Under the new law, rent increases that exceeded the cap after March 15 of this year will get reduced back to the allowable maximum beginning in January 2020.
The bill also implements new rules for landlords.
Landlords will be prohibited from removing renters following the rules of their lease unless the owner is tearing down, renovating or taking the residence off the rental market or moving in.
In cases when an owner converts a building into condos, or makes substantial renovations, owners will have to pay tenants relocation fees.
“The mission of the Gazarian Real Estate Center is to actually inform the people that have an interest in real estate locally, promoting investment, education—as in relation to the real estate industry in the Valley,” said Director of the Gazarian Center Adres Jauregui, Ph.D.
The panel of speakers include Manco Abbott CEO Michael Goldfarb and its COO Adam Goldfarb; Rick Ginder, CEO of Ginder Development Corp: California Apartment Association Vice President Greg Terzakis; and real estate lawyer Jack Schwartz. Robin Kane of Mogharebi Group will be moderating.
“For us in the Central Valley—rental increases and rental rates haven’t been major issues,” Goldfarb said. “There is no question that it is difficult for people making minimum wage to afford any type of housing, but it’s always been that way. I don’t think that rent cap, as the law states today, is going to help those folks.”
Goldfarb said that developers want to build in California, but that restrictions make it less desirable, and that the new rent cap will drive them out of the state.
Terzakis said that since the Costa-Hawkins Rental Housing Act of 1995, AB 1482 is the most important piece of legislation to come out Sacramento in 25 years, and that developers and property owners are still trying to find a middle ground.
There will be Q&A session at the end of the discussion and lunch will be provided for attendees.
Though customers and renters should be protected from price gouging, Terzakis said that most people don’t understand that the costs for property owners are going up faster than consumer price index.
“Our point is that there needs to be a medium between gouging and a point where property managers and owners cant turn a substantial enough profit to justify their investment — or they will go somewhere else,” Terzakis said.