With a full City Hall and two defined factions that showed up—one to support and one to oppose a rent stabilization ordinance—the Salinas City Council unanimously approved an ordinance on Tuesday, Sept. 24 that will cap annual rent increases within city limits at 2.75 percent, becoming the first city in Monterey County to do so. (Mayor Kimbley Craig and Councilmember Jesus Valenzuela recused themselves, citing conflicts of interest.)
The council also approved tenant protections and anti-harassment ordinances.
“This is one step of many that we must take to address our housing crisis in Monterey County,” Councilmember Anthony Rocha said. “Today is a historic moment for our city, and it's a positive change driven by the community.”
The ordinance applies to multi-family residences built before Feb. 1, 1995, per the Costa-Hawkins Rental Housing Act, passed that year. (On Nov. 5, California voters will decide on Proposition 33, which seeks to repeal Costa-Hawkins; if repealed, cities and counties would be able to set their own rent control measures for any type of housing, including units built after 1995.)
In Salinas, 52 percent of dwelling units are rentals and nearly 19 percent would be eligible for rent stabilization.
Those against the new cap, which is lower than the state, say the ordinance will make things worse.
“We continue to argue that you're not going to be able to circumvent supply and demand,” said Kevin Dayton, government affairs liaison for the Salinas Valley Chamber of Commerce, during the meeting. He noted the chamber of commerce sent a nine-page letter explaining the reasons why the current ordinance was a bad idea. “If you think Costco economics is valid, there's going to be a shortage that results, and it's going to make things worse,” he added.
Those in support mentioned rent stabilization will help them keep a roof over their heads and stay in their communities.
“Even with my girlfriend and I working full time, we can't afford to start a family in Salinas. We're being forced out of this place that we've called home,” said Julian, a 26-year-old Salinas resident.
Several organizations, including Building Healthy Communities and Center for Community Advocacy, organized Salinas residents in support for the rent stabilization ordinance.
“We have a lot of places that could be rented at fair prices. Much of the housing here is dilapidated and the rents that are being charged are for the same amount as in large cities like San Diego and San Francisco, but we're a small city in a rural community,” said Natalie Herendeen of the Center for Community Advocacy.
Under the Tenant Protection Act of 2019, rent cannot be increased more than 10 percent state-wide. In July, when Assembly Bill 12 took effect, it closed some loopholes regarding no-fault evictions and limited security deposits to one month's rent.
The rent stabilization ordinance will become effective on Jan. 1, 2025.