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 (On Nov. 5, California voters will decide on Proposition 33, which seeks to repeal Costa-Hawkins; if repealed, cities and counties would be able to set their own rent control measures for any type of housing, including units built after 1995.)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.
(1) comment
I am very pleased to see the passage of the City of Salinas’s historic Rent Stabilization, Just Cause Eviction/Tenant Protections and Anti-Harassment ordinances that passed this week, which the Weekly has been tracking very nicely. Although only approximately 20% of the city’s rental units will be included, these ordinances are a real community benefit. In the short term, some housing stability will be afforded to many, which will benefit us all with healthier neighborhoods, with fewer unhoused families.
The city’s process was unique in that valued community partners organized our most rent-strapped citizens to find a voice, regardless of their languages, their economic situations or their own perceived lack of power; that is progress. As we go forward, we know there will be unintended consequences, primarily because of the chronically low housing inventory, but the specter of the ordinances did bring many in the business community back to the table. For example the Chamber of Commerce’s nine-page critique of the ordinance, and their offer to be part of technical assistance going forward. It would be nice to see agricultural and hospitality employers participating too, as a recurrent public concern articulated was the impact of very low wages on housing affordability.
The unintended consequences have begun as residents are already publicly relating an uptick in eviction notices in the run-up to the January 2025 enactment of the laws. In addition, the Weekly is reporting increasing numbers of illegal short-term rentals (AirBnB’s) in neighboring cities. They are undoubtedly already lowering rental inventory in parts of Salinas. Over time we can expect more of these types of rentals with the many rental ordinances in place. And finally, more “efficient” and costly corporate landlord companies will come into the area as present landlords may decide to bail the local rental environment.
If we are to prevent longer-term housing displacement after this stop-gap rental stabilization measure, we need to collaboratively get to the work of looking anew at updating the inclusionary housing ordinance, making better use of our rental registry/code enforcement department and at the same time, increasing housing stock in a manner consistent with regional mandates for affordability. Maybe now is the time for a Salinas Tenant/Landlord Commission, to strategize and educate about this new rental landscape.
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