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Los Angeles: To Keep Rents Low, Make Owners Sell their Buildings to the City

<p class&equals;"p1"><span class&equals;"s1">As part of a strategy to keep rents affordable in Los Angeles&comma; City Councilman Gil Cedillo is trying to force landlord Thomas Botz to sell his 124-unit apartment building&period;<&sol;span><&sol;p>&NewLine;<p class&equals;"p1"><span class&equals;"s1">&OpenCurlyDoubleQuote;We will use all of the resources of the city&comma; both legal and fiscal&comma; to protect these tenants&comma;” argues Cedillo&period; &OpenCurlyDoubleQuote;The city is in crisis…with respect to housing and affordability&period;”<&sol;span><&sol;p>&NewLine;<p><span class&equals;"s1">The building&comma; known as Hillside Villa&comma; was constructed in 1986 using nearly &dollar;5&period;5 million in loans from the city&period; In exchange&comma; developers promised to keep rents at affordable prices for the next 30 years&period; <&sol;span><span class&equals;"s1"><b>That agreement expired in 2018&period;<&sol;b><&sol;span><&sol;p>&NewLine;<table style&equals;"border-collapse&colon; collapse&semi; height&colon; 375px&semi;" width&equals;"637" align&equals;"center">&NewLine;<tbody>&NewLine;<tr>&NewLine;<td style&equals;"border-collapse&colon; collapse&semi; text-align&colon; center&semi;">&NewLine;<h3><a href&equals;"https&colon;&sol;&sol;punchingbagmedia&period;com&sol;products&sol;trump-coffee-mug-trump-pence-keep-america-great-2020-maga-republican-conservative-gift-red-handle-ceramic-coffee-mug-tea-cup&quest;&lowbar;pos&equals;1&amp&semi;&lowbar;sid&equals;08e04bfde&amp&semi;&lowbar;ss&equals;r"><strong><span style&equals;"color&colon; &num;ff0000&semi;">A Punching Bag Post Exclusive Offer<&sol;span><&sol;strong><&sol;a><&sol;h3>&NewLine;<h5><a href&equals;"https&colon;&sol;&sol;punchingbagmedia&period;com&sol;products&sol;trump-coffee-mug-trump-pence-keep-america-great-2020-maga-republican-conservative-gift-red-handle-ceramic-coffee-mug-tea-cup&quest;&lowbar;pos&equals;1&amp&semi;&lowbar;sid&equals;08e04bfde&amp&semi;&lowbar;ss&equals;r"><img class&equals;"" src&equals;"https&colon;&sol;&sol;cdn&period;shopify&period;com&sol;s&sol;files&sol;1&sol;0272&sol;9610&sol;4557&sol;files&sol;82866959&lowbar;792091941276789&lowbar;7507284048050388992&lowbar;n&period;gif&quest;v&equals;1580593892" width&equals;"410" height&equals;"390" &sol;><&sol;a><&sol;h5>&NewLine;<p><b><span style&equals;"color&colon; &num;000000&semi;">The next<&sol;span> <a href&equals;"https&colon;&sol;&sol;punchingbagmedia&period;com&sol;products&sol;trump-coffee-mug-trump-pence-keep-america-great-2020-maga-republican-conservative-gift-red-handle-ceramic-coffee-mug-tea-cup&quest;&lowbar;pos&equals;1&amp&semi;&lowbar;sid&equals;08e04bfde&amp&semi;&lowbar;ss&equals;r"><b><span style&equals;"color&colon; &num;ff0000&semi;">ICONIC MUG<&sol;span><&sol;b>&&num;8230&semi; <b><span style&equals;"color&colon; &num;0000ff&semi;">It&&num;8217&semi;s Winning Season Again<&sol;span><span style&equals;"color&colon; &num;ff0000&semi;">&&num;8230&semi;Buy Now&excl;<&sol;span><&sol;b> <&sol;a><&sol;b><&sol;td>&NewLine;<&sol;tr>&NewLine;<&sol;tbody>&NewLine;<&sol;table>&NewLine;<p><span class&equals;"s1">&OpenCurlyDoubleQuote;If the city goes and expropriates buildings from private developers like us&comma; who have made their 30-year deal&&num;8230&semi;just to have the building taken away at the end&comma; no private developer would build another unit of housing in cooperation with the city of LA ever again&comma;” argues Botz&comma; who rejected a proposal from Cedillo last year&period; <&sol;span><&sol;p>&NewLine;<p>Now&comma; Cedillo hopes to acquire the building <span class&equals;"s1">using the LA Board of Public Works’ power of eminent domain&period;<&sol;span><&sol;p>&NewLine;<p><span class&equals;"s1">The Board of Public Works has long used eminent domain to buy private property for public infrastructure projects such as schools&comma; bridges&comma; and fire stations&period; The city&&num;8217&semi;s housing department lacks this authority&comma; however&comma; and Cedillo will need to prove that he can legally force Mr&period; Botz to sell<&sol;span><span class&equals;"s1"> Hillside Villa <&sol;span><span class&equals;"s1">to preserve affordable rent&period; If he succeeds&comma; the city <&sol;span><span class&equals;"s1">will need to pay fair market value for the building &&num;8211&semi; a price that could take years in court to determine&period; <&sol;span><&sol;p>&NewLine;<p>If Cedillo fails to obtain Hillside Villa&comma; tenants <span class&equals;"s1">will face rent increases of up to 50&percnt; later this year&period; In at least one unit&comma; monthly rent is expected to jump from &dollar;889 to &dollar;2&comma;500&period;<&sol;span><&sol;p>&NewLine;<p>Cedillo has broad support from tenant rights groups&comma; who insist the acquisition <span class&equals;"s1">of existing buildings is a better way to prevent homelessness than building<&sol;span><span style&equals;"font-family&colon; -apple-system&comma; BlinkMacSystemFont&comma; 'Segoe UI'&comma; Roboto&comma; Oxygen-Sans&comma; Ubuntu&comma; Cantarell&comma; 'Helvetica Neue'&comma; sans-serif&semi;"> affordable housing from scratch&period;<&sol;span><&sol;p>&NewLine;<p><span class&equals;"s1"><b style&equals;"font-family&colon; -apple-system&comma; BlinkMacSystemFont&comma; 'Segoe UI'&comma; Roboto&comma; Oxygen-Sans&comma; Ubuntu&comma; Cantarell&comma; 'Helvetica Neue'&comma; sans-serif&semi;">Author’s Note&colon;<&sol;b><&sol;span><&sol;p>&NewLine;<p class&equals;"p1"><span class&equals;"s1">Housing and homelessness are real problems in California&comma; but forcing landowners to sell their apartment buildings is not the answer&comma; nor is it legal&period; <&sol;span><&sol;p>&NewLine;<p class&equals;"p1"><span class&equals;"s1">Cedillo&&num;8217&semi;s proposal is actual socialism&colon; the forced sale of private property to a city for the city&&num;8217&semi;s own purposes&comma; the assumption by government of the means of production&period; <&sol;span><&sol;p>&NewLine;<p class&equals;"p1"><span class&equals;"s1">This is not the same thing as eminent domain&comma; wherein land is purchased for projects in the public right of way&comma; but an attempt to compete with private industry&period; If Cedillo is successful&comma; we can expect the city to establish a price advantage for the next forced sale&comma; and the next&comma; until the city eventually takes whatever property it wants without paying landlords a dime&period; <&sol;span><&sol;p>&NewLine;<p><strong>Editor&&num;8217&semi;s Note&colon;<&sol;strong><&sol;p>&NewLine;<p>California&&num;8217&semi;s propensity to socialism is not the solution to this problem&comma; it is the actual cause of the problem&period; California may find that if it leaves the free market alone and focuses on its own responsibilities which are infrastructure needs&comma; that the housing industry would balance itself out and many problems would solve themselves&period;<&sol;p>&NewLine;<p>As for attacking a building owner who has lived up to his agreements&quest; The building owner should sue the city&&num;8217&semi;s butts off&period;<&sol;p>&NewLine;<p>&nbsp&semi;<&sol;p>&NewLine;

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