A sign of a power shift in Salinas, City Council agrees to pursue rent stabilization.

Sara Rubin here, rubbing my eyes after a long night. The line of people to speak to Salinas City Council last night stretched out the door of the building. There were not enough chairs for the public who packed the council chambers, with even standing attendees squished. 

The process of considering a rent stabilization ordinance in the city has been roughly a year in the making. Last night marked a major milestone, with City Council voting 5-0 to proceed with an ordinance capping annual rent increases at 2.75 percent and creating additional protections for tenants. (Mayor Kimbley Craig recused herself due to owning a rental property; Councilmember Jesus Valenzuela recused himself because of previous work he had done for advocacy groups backing the ordinance.) 

It was already about 8:45pm when the public comment period opened, and immediately the room came alive. Dozens of people lined up for their two minutes to speak to their policymakers. They fell primarily in two camps: Renters in support and property owners in opposition. 

Landlords spoke in impassioned terms, and also in numbers—they cited skyrocketing costs of everything from insurance to handymen. “The problem is income,” said landlord Nelson Vega. “Obviously, they’re not paid enough. You are taking this problem and putting it on a small group of investors.”

Of course Vega is right—there are much bigger, systemic economic issues that drive inequality. But the dozens of tenants who spoke are also right. Their stories of skyrocketing rents, unfathomable security deposits and sudden evictions all pull at the heartstrings and undermine a thriving community.

What is more remarkable than the stories is the sustained level of organization by this group of relatively poor, working people. They’ve showed up again and again to ask the City Council to do something. 

By the time Luis Xago Juarez, an organizer with Building Healthy Communities, got up to speak at the podium, it was after 10:30pm. “I am just taking in this moment, this historic moment,” he said.

It had the feeling of a David-and-Goliath moment, originating from grassroots pressure but rooted in data. A consultant, Economic & Planning Systems, Inc., suggested the range of 2.5 to 2.75 percent for annual caps. Any lower than 2 percent, they said, would mean property owners’ return on investment would dip below 10 percent—making property ownership competitive with money markets (and the latter is sure a lot easier). 

Councilmember Anthony Rocha, a stickler for data, suggested the council move forward with an ordinance capping annual increases at 2.75 percent, the higher end of EPS’ suggested range. “I believe it’s rooted in compromise, and it’s rooted in creating a fair process for everyone,” Rocha says. 

The ordinance is far from a silver bullet, certainly. Because of state law that staff writer Celia Jiménez has reported on, it will apply only to multi-family units built prior to 1995—about 36 percent of Salinas’ existing rental inventory. It doesn’t address the need for more housing. It could lead to major price spikes when units become vacant. It will require more city staff to oversee. 

City Council knows all of that, eyes wide open. That’s thanks to an extensive public outreach process all along the way. “It’s critical to welcome people into the decision-making process, if we want people to trust their government,” Rocha says. “That could be applied to any decision—it should be applied to any decision.”

The ordinance will come back to Salinas City Council for adoption in September.

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