Establishing Rent Control in
Fairfax
Presentation to the Fairfax Town Council
Curt Ries, Marin DSA and Leah Simon-Weisberg, ACCE
March 2nd, 2022
What We’ll Cover
● The Cost of Housing in Fairfax
● Who Are Renters?
● How Rent Control Works
● Public Support
● Rent Control: It Works & It’s Tested
● A Chance to Lead in Fairfax
The Cost of Housing in Fairfax
The Cost of Housing in Fairfax
● The median rent is over $1,800 per month.¹
1. U.S. Census Bureau, 2019: American Community Survey 5-Year Estimates The Cost of Housing in Fairfax
● The median rent is over $1,800 per month.¹
● A Fairfax renter needs to earn $67.69 an hour to afford a modest two-bedroom apartment or $55.77 an hour to afford a modest one-bedroom apartment without being rentburdened.²
1. U.S. Census Bureau, 2019: American Community Survey 5-Year Estimates
2. National Low Income Housing Coalition’s “Out of Reach 2021” study The Cost of Housing in Fairfax
● The median rent is over $1,800 per month.¹
● A Fairfax renter needs to earn $67.69 an hour to afford a modest two-bedroom apartment or $55.77 an hour to afford a modest onebedroom apartment without being rent-burdened.² ● The average real wage for Marin renters is $23.23 an hour.²
1. U.S. Census Bureau, 2019: American Community Survey 5-Year Estimates
2. National Low Income Housing Coalition’s “Out of Reach 2021” study 48%
Of Fairfax renters pay more than 30% of their income on rent.¹
1. U.S. Census Bureau, 2019: American Community Survey 5-Year Estimates 28%
Of Fairfax renters pay more than 50% of their income on rent.¹
1. U.S. Census Bureau, 2019: American Community Survey 5-Year Estimates 71%
Of Fairfax renters are considered low-income (23.8%), very lowincome (12.1%), or extremely low-income (35.5%).¹
1. 2021-04-02 Housing Needs Data Report: Fairfax, ABAG/MTC Staff and Baird + Driskell Community Planning Who Are Renters?
Who Are Renters?
● 37% of Fairfax households rent their homes.¹
1. 2021-04-02 Housing Needs Data Report: Fairfax, ABAG/MTC Staff and Baird + Driskell Community Planning Who Are Renters?
● 37% of Fairfax households rent their homes.¹
● 87% of Fairfax householders under the age of 35 are
renters.²
1. 2021-04-02 Housing Needs Data Report: Fairfax, ABAG/MTC Staff and Baird + Driskell Community Planning
2. U.S. Census Bureau, 2019: American Community Survey 5-Year Estimates Who Are Renters?
● 37% of Fairfax households rent their homes.¹
● 87% of Fairfax householders under the age of 35 are renters.² ● 68% of Fairfax householders who identify as Hispanic or Latino are renters.²
1. 2021-04-02 Housing Needs Data Report: Fairfax, ABAG/MTC Staff and Baird + Driskell Community Planning
2. U.S. Census Bureau, 2019: American Community Survey 5-Year Estimates Who Are Renters?
● 37% of Fairfax households rent their homes.¹
● 87% of Fairfax householders under the age of 35 are renters.² ● 68% of Fairfax householders who identify as Hispanic or Latino are renters.²
● 66% of Fairfax householders who identify their race as something other than white are renters.²
1. 2021-04-02 Housing Needs Data Report: Fairfax, ABAG/MTC Staff and Baird + Driskell Community Planning
2. U.S. Census Bureau, 2019: American Community Survey 5-Year Estimates Rent Control Basics
Rent Control Basics
● (1) Place an annual cap—based on inflation—on how much landlords can raise rents;
Rent Control Basics
● (1) Place an annual cap—based on inflation—on how much landlords can raise rents;
● (2) Strengthen existing “just cause” eviction protections to prevent arbitrary evictions, keep students and teachers in their homes, and protect renters who are evicted due to no fault of their own.
How Rent Control Works
How Rent Control Works
● An annual allowable rent increase is determined each year based on the Consumer Price Index (CPI), establishing a cap on how much landlords can raise the rent that year for
eligible units.
How Rent Control Works
● An annual allowable rent increase is determined each year based on the Consumer Price Index (CPI), establishing a cap on how much landlords can raise the rent that year for eligible units. ● A five-member appointed Rent Board publicizes the annual allowable rent increase to tenants and landlords.
How Rent Control Works
● An annual allowable rent increase is determined each year based on the Consumer Price Index (CPI), establishing a cap on how much landlords can raise the rent that year for eligible units. ● A five-member appointed Rent Board publicizes the annual allowable rent increase to tenants and landlords.
● Tenants and landlords may file a petition to the Rent Board requesting that the annual cap be lowered or raised for their unit(s).
How Rent Control Works
● An annual allowable rent increase is determined each year based on the Consumer Price Index (CPI), establishing a cap on how much landlords can raise the rent that year for eligible units. ● A five-member appointed Rent Board publicizes the annual allowable rent increase to tenants and landlords.
● Tenants and landlords may file a petition to the Rent Board requesting that the annual cap be lowered or raised for their unit(s). ● The Rent Board enforces the rental cap and intervenes when a landlord overcharges a tenant.
Rent Control: Administration
Rent Control: Administration
● Rent Board: A council-appointed, five-member commission charged with administering and enforcing the rent control ordinance by setting and publishing the annual allowable rent adjustment and remedying instances where the landlord overcharges a tenant.
Rent Control: Administration
● Rent Board: A council-appointed, five-member commission charged with administering and enforcing the rent control ordinance by setting and publishing the annual allowable rent adjustment and remedying instances where the landlord overcharges a tenant.
● Hearing Examiner: A board-appointed staffer, shared with other jurisdictions, who hears petitions to adjust the maximum allowable rent for a specific unit/building. The estimated annual caseload for Fairfax would be 2-10 petitions.
Rent Control: Administration
● Rent Board: A council-appointed, five-member commission charged with administering and enforcing the rent control ordinance by setting and publishing the annual allowable rent adjustment and remedying instances where the landlord overcharges a tenant.
● Hearing Examiner: A board-appointed staffer, shared with other jurisdictions, who hears petitions to adjust the maximum allowable rent for a specific unit/building. The estimated annual caseload for Fairfax would be 2-10 petitions.
● Staff & Financing: Additional administrative staffing needs would be assessed and determined by the board and paid for by the Rental Housing Fee, a modest, flat, per-unit fee paid annually by landlords.
A $7-10 monthly fee on rental units would raise $128,904 annually in Fairfax.
Rent Control: Just Cause Evictions
Some specific improvements to the existing Just Cause Eviction provisions include:
Rent Control: Just Cause Evictions
Some specific improvements to the existing Just Cause Eviction provisions include:
● Relocation Payments: providing transitional financial support for renters who are evicted due to no fault of their own.
Rent Control: Just Cause Evictions
Some specific improvements to the existing Just Cause Eviction provisions include:
● Relocation Payments: providing transitional financial support for renters who are evicted due to no fault of their own.
● Right of Return/First Right of Refusal: ensuring that tenants previously evicted due to no fault of their own are able to move back into their apartment if and when it becomes
available.
Rent Control: Just Cause Evictions
Some specific improvements to the existing Just Cause Eviction provisions include:
● Relocation Payments: providing transitional financial support for renters who are evicted due to no fault of their own.
● Right of Return/First Right of Refusal: ensuring that tenants previously evicted due to no fault of their own are able to move back into their apartment if and when it becomes available.
● School Year Protections for Educators and Students:
providing students and teachers with additional defenses against no-fault eviction during the school year.
Rent Control: Just Cause Evictions
● Relocation Payments: providing transitional financial support for renters who are evicted due to no fault of their own.
● Right of Return/First Right of Refusal: ensuring that tenants previously evicted due to no fault of their own are able to move back into their apartment if and when it becomes available.
● School Year Protections for Educators and Students: providing students and teachers with additional defenses against no-fault eviction during the school year.
● Protections for Seniors and People with Disabilities:
prohibiting no-fault owner move-in evictions for those 60 or older or those with disabilities; requiring supplemental relocation payments.
Rent Control: Just Cause Evictions
● Relocation Payments: providing transitional financial support for renters who are evicted due to no fault of their own.
● Right of Return/First Right of Refusal: ensuring that tenants previously evicted due to no fault of their own are able to move back into their apartment if and when it becomes available.
● School Year Protections for Educators and Students: providing students and teachers with additional defenses against no-fault eviction during the school year.
● Protections for Seniors and People with Disabilities: prohibiting no-fault owner move-in evictions for those 60 or older or those with disabilities; requiring supplemental relocation payments.
● Compliance: providing real oversight and enforcement of just cause protections.
Public Support
Public Support
Public Support
● 1,300+ petition signatures countywide.
Public Support
● 1,300+ petition signatures countywide.
● 470 petition signatures from Fairfax residents.
Public Support
● 1,300+ petition signatures countywide.
● 470 petition signatures from Fairfax residents.
● 290 petition signatures come from Fairfax renters.
Public Support
Rent Control Works
● Creates economic stability
○ During foreclosure crisis, rent controlled cities recovered faster than than those without.
○ Tenants are more likely to be less rent-burdened and have discretionary income to spend in the local economy.
○ New construction higher than cities without rent control.
Rent Control is Tested
21 cities have rent control, 15 of which have had it for more than 30 years.
● Richmond’s ordinance upheld (2016)
● Mountain View’s ordinance upheld (2016)
● City of San Francisco (2022)
Rent Control Guarantees a Fair Rate of Return for
Landlords
Constitutional guarantees right to a fair rate of return on their investment.
Costa-Hawkins Rental Housing Act allows landlords to set original rent at the beginning of the tenancy and rent control then ensures that there are increases that reflect inflation through the Consumer Price Index (CPI).
Cities with these protections have thriving housing industries– strong tax bases. No cities have seen landlords going out of the business.
A Chance to Lead
● Fairfax has an incredible opportunity to lead Marin on this issue and live up to its values of being a fair, inclusive, and compassionate community.
A Chance to Lead
● Fairfax has an incredible opportunity to lead Marin on this issue and live up to its values of being a fair, inclusive, and compassionate community.
● By passing rent control, we can collectively decide to put people’s basic needs for safe and secure housing above the additional profits of a small number of landlords and realtors.
A Chance to Lead
We can decide that
Fairfax
is for everyone.
Thank You