WRITTEN PUBLIC COMMENTS
NOT READ INTO THE RECORD
1 Du
From: Jay Cohen
Sent: Tuesday, February 15, 2022 2:30 PM
To: City Clerk
Subject: Comment To Be Read in Re: SS Item A-1 2. (Update and Options Regarding the City's COVID-19 Related Rent Protections)
CAUTION: External Sender
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To be read at City Council Study Session on Tues Feb 15th @ 2:30pm PST please. Thank you! Dear Mayor and City Council,
I hope this finds you all well! Lifting the moratorium in March during a potential spike from Super Bowl week or even during the tapering off of the pandemic when people are still fighting this deadly virus mentally, physically, and economically in a big way would be unconscionable + very short sighted. Our city should have tenant protections in place for at least another year until we know for sure that the worst is over, or we risk serious displacement of many valued residential tenants which is not good for anyone. I also wanted to bring this to the attention of the City Council and to the Rent Stabilization board as I don't think anyone has mentioned this since the moratorium of it all is recently being discussed again. As we all know, we just had the Super Bowl here which is one of the biggest events in the world.
Does everyone remember what happened in Miami in Feb of 2019 after the Super Bowl there? That is when the virus took off, because people were in huge clusters from all over the world leaving a huge footprint of infections behind as well as spreading them to where they went off to and more. Experts warn that the cocktail of behaviors could lead to a nationwide spike in COVID‐19 infections, reversing recent weeks of declining spread. One question a few people are pondering is what happens if our city lifts the moratorium, but then the current variant or another variant takes control and residential tenants are not protected? Both sides (residential tenants + landlords) need to play the long game and not be short sighted. Landlords think that lifting the moratorium and or raising rents which will end up displacing a plethora of tenants will help their bottom line is short sighted thinking! People are not rushing into Beverly Hills to pay high rents in this environment of disease and economic hardship and a large swath of people that live in our City are not likely to stay if they have to pay higher rents after losing significant income because of this pandemic. And lets not forget about our residents who were not able to pay their rent in full or at all and are just now trying to get back on their feet? Given where we are, and the continued risk to our community, we need protections that help us stay cohesive as a City.
We have already had to settle in the retail sector with the Mr. Brainwashes and allowing Frito Lay Ads on windows as opposed to the former distinguished TV Museum tenant leaving. Do we really want to lose countless residential tenants that we value the same way we lost iconic retailers like Ruth's Chris? Keep the moritorums for residential tenants in place and play the long game! Helen Morales seems to only argue for one side‐ the landlords and developers, which seems very interesting. Almost, like she is working for them which I would assume is not the full scope of her role with the City? If that is the case, why don't we appoint someone into an official role with the city that listens and acts for both landlords and tenants together, so there are actual checks and balances in this area? Lets work together! Also, Helen never sent out any mailer and or information on the actual Beverly Hills Rent Subsidy Reserve Money to the constituents as was ordered by the Council at the last meeting. They were supposed to be sent to all Beverly Hills residents. We keep getting notice of construction mailers of course. If the City is not reaching out to all residents that the City Of Beverly Hills has circa 730k in resources available to them if they need it, how can we drop the moratorium? With all this said, Dr. Barbara Ferrer of the LA County Health Dept is on the record as of a few days ago emphasizing that the pandemic is not over, that that transmission is not low by any means, and there will be waves of surges after this week's past events.
There are way to many indicators that tell us that we are not ready to lift any moratoriums or raise rents in March as we 2 want to keep our great tenants in place and not lose them because we played the short game. Thats not how we do things in Beverly Hills. Thats how they do things in other places that do not succeed.
Thank you all very much for your time.
APARTMENT ASSOCIATION OF GREATER LOS ANGELES
AAGLA
“Great Apartments Start
Here!”
1 Danielle Leidner-Peretz
Director, Government Affairs
& External Relations
[email protected]
213.384.4131; Ext. 309
February 14, 2022
Via Electronic Mail
Hon. Mayor Bob Wunderlich
and the Members of the Beverly Hills City Council
455 North Rexford Drive
Beverly Hills, California 90210
Re: Update and Options Regarding the City’s COVID-19 Related Rent Protections and LA County Updated COVID-19 Tenant Protections Resolution (Agenda Item A-2) Dear Hon. Mayor Wunderlich and Members of the Beverly Hills City Council:
In July 2021, the City Council directed the Beverly Hills Rent Stabilization Commission (RSC) to review the City’s eviction moratorium and rent increase freeze and provide the Council with recommendations for amending the ordinance. In October 2021, the Council received the RSC’s recommendations which suggested that the City’s eviction moratorium and rent increase freeze expire in alignment with the State’s eviction moratorium, which expired on September 30, 2021 and that the rent repayment period for deferred rent owed commence at the end of the eviction moratorium. At that time, the City Council initially directed staff to end the City’s eviction moratorium and rent increase freeze on March 31, 2022. It is now mid-February 2022, these matters and the establishment of a date certain for the end of the City’s eviction moratorium and rent increase freeze remain unresolved.
It is long overdue for the City Council to seek a clear path forward and the end of the eviction moratorium and rent increase freeze. The Apartment Association of Greater Los Angeles (AAGLA or Association) is strongly opposed to the continuation of the City’s eviction moratorium and rent increase freeze and urges the City Council to establish a date certain and the immediate end of these interim emergency measures.
The past almost two years have presented many challenges as an unprecedented pandemic led to government mandates, stay at home orders and for some, unemployment, or temporary job loss. Today, the State is fully reopened, businesses are operating at or above normal levels, and individuals are working or seeking a multitude of new employment opportunities. Moreover, just this past weekend, approximately 70,000 people attended the Super Bowl at Inglewood’s SoFi Stadium, and millions attended a variety of Super Bowl related events throughout Southern California which only further exemplifies the enormous degree to which circumstances have changed.
APARTMENT ASSOCIATION OF GREATER LOS ANGELES
AAGLA
“Great Apartments Start
Here!”
2 While we continue to experience waning COVID-19 related circumstances due to variants, we now have vaccinations and booster shots that are readily available and there is a State Rental Relief Program for qualified renters and rental housing providers. Furthermore, renters who have been impacted by the pandemic and have been unable to pay rent will have over a year to pay back deferred rent, cannot be evicted during that time for the deferred rent owed and if they qualify and comply with State requirements cannot be evicted for back due rent ever.
The City Council must make decisions based on current dynamics and what is known, not speculation. There is simply no justification to maintain measures put in place nearly two years ago and under clearly different conditions.
As it relates to the specific provisions of the urgency ordinance, the ordinance bans all rent increases for all units subject to the City’s Rent Stabilization Ordinance as set forth in Chapters 5 and 6 of the Municipal Code. This prohibition applies regardless of whether or not a renter has been financially impacted by the pandemic. As stated in the City’s Staff report dated January 18, 2022 “because the Ordinance took effect on March 15, 2020, and is still in effect, landlords may have missed as many as two annual rent increases as of today and may miss as many as three annual rent increases as of March 15, 2022”. For housing providers that may not have increased rent for one, two or even three years prior to the onset of the pandemic, they may ultimately miss five years (or more) of annual general rent adjustments. Annual general rent adjustments are necessary with the ability to recapture any increases that were forgone for potentially three years. The current inflation rate is 7.5%, housing providers are struggling immensely today due to challenged rent collections, and frozen rents under these tremendous inflationary pressures.
For the last nearly two years, no other service provider has been subjected to greater government restrictions than the rental housing industry. Many of our members are small business housing providers who have endured dire financial challenges, collecting little, if any, rental income, and consequently depleting retirement and other savings or financing critical items with credit cards in order to maintain essential building operations, with many now contemplating or being forced into leaving the business entirely. Our members have often worked with their renters who have been financially impacted by COVID-19, but have also witnessed circumstances where renters, who have not been impacted by the pandemic, have taken advantage of the situation, and simply not paid rent due despite having the financial ability to do so.
This situation has been further compounded by enormous increases in building operational and related costs which now with runaway inflationary pressures effecting our economy continue to rapidly escalate. While the City’s small business rental housing providers have been struggling to cover immense operational costs, simultaneously, they have been banned from issuing any rent increases as the prohibition does not require any demonstration by the renter of substantial financial impact due to COVID-19 and related documentation. What is the City’s basis for denying rental housing providers years of annual general adjustments from a renter who is not financially impacted by the pandemic and may be better financially situated?
APARTMENT ASSOCIATION OF GREATER LOS ANGELES
AAGLA
“Great Apartments Start
Here!”
3 It is imperative for owners to maintain a fair return, guaranteed to them by the Federal and State constitutions. Accordingly, we urge the City Council to end the rent increase freeze immediately and allow the City’s rental housing providers the ability to recover forgone annual increases as an add on to the allowable annual increase until the full amount of those prior annual increases have been recouped. The City’s already struggling rental housing providers should not be compelled to go through a lengthy administrative process and filing of rent adjustment applications simply to obtain past permissible rent increases.
From the onset of the pandemic and governments response, we have urged the City to take a balanced and equitable approach that assists all those in need. In the time since, we have made best efforts to work with our renters during these ever evolving and challenging times. The interim emergency measures of 2020 must be replaced with long-term targeted solutions based on current factors and identified need. The rental housing industry like all other industries must be permitted to resume normal operations.
Thank you for your time and consideration of these matters. If you have any questions, please call me at (213) 384-4131; Ext. 309 or contact me via electronic mail at [email protected].
Very truly yours,
Danielle Leidner-Peretz
Danielle Leidner-Peretz