1 David Yakobson
From: Fred Sutton <[email protected]>
Sent: Monday, June 23, 2025 1:07 PM
To: councilmtgitems
Subject: Item C: Oppose
Attachments: Algorithmic Pricing Opposition Letter_ItemC.pdf
EXTERNAL
Hello Honorable City Council,
Attached, please find a letter of opposition to item C on tomorrow’s agenda. We encourage the council to conduct more study and feedback on this item.
Thank you for your review.
Fred Sutton ▪Senior Vice President of Public Affairs
California Apartment Association
[email protected] ▪ (424) 307-1378
CAA is your partner in the rental housing industry.
Find out how we're working for you.
Item 4-C
June 24, 2025
Item 4-C
June 24, 2025
June 23, 2025
Santa Monica City Council
1685 Main Street, Room 209
Santa Monica, CA 90401
RE: Item C: Prohibition of Algorithmic Devices
Dear Honorable Members of the Santa Monica City Council, The California Apartment Association (CAA) represents local housing providers, operators and suppliers along with business owners and real estate industry experts who are involved with a range of rental properties from those that offer single-family residences to large apartment communities. We are committed to promoting fair and equitable housing policies throughout LA County.
We respectfully oppose the ordinance before you for the following reasons:
1. Premature Local Action:
New state and/or federal regulation in this policy area may preempt local regulation and there are numerous proposals in the State Legislature on this matter, including SB 52. In addition, over twenty lawsuits have been filed nationwide against the use of these tools.
The city would be better served waiting to see the action that may occur by the State Legislature and/or the courts before taking action that could be duplicative to or conflict with a local law thus only creating confusion for housing providers and residents.
2. Undefined and Overbroad Definitions:
More work is needed to clearly define what constitutes “algorithmic pricing software.” As currently written, the ordinance is too broad to provide meaningful guidance to housing providers or to ensure consistent enforcement. A one-size-fits-all local approach is illsuited for a nuanced and technically complex issue like this one.
3. Understand Emerging Technologies
Technology is rapidly advancing in every field. The council should first understand new technologies, their capabilities and limitations before banning them. More study is prudent.
These technologies are not the source of the region’s housing crises, but rather the lack of supply and an overly regulated environment is.
Item 4-C
June 24, 2025
Item 4-C
June 24, 2025
We urge the City of Santa Monica to pause local efforts, allow the state legislative process to continue, and focus all local energy on the development of more affordable housing. This issue deserves a comprehensive, thoughtful, and statewide approach that incorporates input from all stakeholders.
Thank you for your consideration.
Sincerely,
Fred Sutton
California Apartment Association
Item 4-C
June 24, 2025
Item 4-C
June 24, 2025