SB 1439 Faces Potential Death Knell

Paul Stewart, SAMCAR Government Affairs Director | June 24, 2014

As we know, Senate Bill 1439 (Leno) failed to pass out of the Assembly Housing and Community Development Committee this week on a 4-3 vote. The measure was granted reconsideration (7-0) but it must be passed out of this committee, as well as the Assembly Judiciary Committee, prior to the end of June in order to continue moving forward this year.

If not, the bill dies.

Recall that SB 1439 makes substantive changes in the Ellis Act for income property owners also failed passage in the Senate on an 18-19 vote. C.A.R. and SAMCAR have consistently opposed the bill.

Reconsideration was granted and when Sen. Jerry Hill, along with Sens. Ben Hueso and Ed Hernandez, changed their votes from OPPOSE to SUPPORT (on promises from Leno that he would amend the bill to clarify who is an investor versus a profiteer; who/what qualifies as a "small" rental property owner; and, add a sunset clause), it allowed SB 1439 to eke out of the Senate with the minimum 21 'ayes.'

SB 1439 weakens the Ellis Act, a landmark law that bars local governments from making property owners stay in the rental housing industry. Passed in 1985, the Ellis Act particularly helps owners of properties in rent-controlled cities where landlords can find themselves operating at a loss. Under the current version of the bill, the City and County of San Francisco will force an owner of rental property in San Francisco to wait at least five years before removing his or her rental units from the market. The bill is presented as a "San Francisco only" piece of legislation.

TAGGED: Ellis Act, San Francisco, SB 1439

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