Confusion Leads California AG to Request Housing Authorities Deny Rent Increases

Confusion Leads California AG to Request Housing Authorities Deny Rent Increases
California Attorney General Rob Bonta speaks at the district attorney building in Santa Ana, Calif., on Sept. 8, 2022. John Fredricks/The Epoch Times
Travis Gillmore
Updated:
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With housing authorities interpreting the state’s rent control laws differently, California Attorney General Rob Bonta issued letters (pdf) to the agencies June 29 clarifying the statutes and demanding protection for all tenants.

“As California grapples with an unprecedented housing crisis, it’s critical that we work together to protect those most at risk of losing their homes,” Mr. Bonta said in the press release July 5.

At issue are residents involved in the state’s Section 8 Housing Voucher Program—a federally funded program administered by local housing agencies and designed to provide financial assistance to very low-income families.

Some housing authorities mistakenly allowed, on multiple occasions over the past year, rent increases greater than the thresholds mandated by rent control laws enacted with the state Tenant Protection Act—5 percent plus inflation or 10 percent annually, whichever amount is lower—believing that such individuals were not protected by the statute because their rent was subsidized by the voucher program.

The attorney general was clear that every tenant is protected, including those receiving federal aid.

“Section 8 recipients are some of the most vulnerable of California’s tenants and subjecting them to illegal and burdensome rent increases is unfair and may contribute to homelessness,” Mr. Bonta said.

Apartments in Long Beach, Calif., on Nov. 1, 2021. (John Fredricks/The Epoch Times)
Apartments in Long Beach, Calif., on Nov. 1, 2021. John Fredricks/The Epoch Times

In his letter to the agencies, the attorney general alerted officials he is aware of violations and is requesting assistance to correct any misconceptions.

“Unfortunately, my office has learned that some local housing authorities have approved rent increases that violate the Tenant Protection Act, leading landlords to believe, wrongly, that they are in compliance with state law,” he said. “I ask that you carefully scrutinize future rent increase requests to ensure that they comply with the Tenant Protection Act and any other applicable state or local laws.”

Mr. Bonta stressed his intention to enforce state laws and advised all landlords to be aware of the regulations and act accordingly.

“In addition to monitoring future rent increases, I encourage all local housing authorities to take similar steps to make clear to landlords that participating in the Section 8 program does not give them a free pass to ignore state laws, including but not limited to the Tenant Protection Act, or local tenant protections.”

Some say confusion lies in a narrow exception to the rent control laws that allow for exceptions when rent is subsidized by local governments, but Mr. Bonta reiterated that this does not apply to those enrolled in the Section 8 program.

Faced with a growing housing crisis exacerbated by inflation and a significant percentage of the population burdened by the cost of rent, the attorney general recently formed a housing strike force to address the affordability and accessibility issues impacting residents, including complaints regarding rent increases for those with Section 8 vouchers.

A sign advertises an apartment available for rent in Orange County, Calif., on Nov. 16, 2020. (John Fredricks/The Epoch Times)
A sign advertises an apartment available for rent in Orange County, Calif., on Nov. 16, 2020. John Fredricks/The Epoch Times

Established in 2021, the California Department of Justice’s Housing Justice Team is composed of deputy attorney generals tasked with “monitoring compliance ... and defending and enforcing state laws” related to housing supply and market stability.

Following one housing team investigation, a nearly $400,000 settlement was reached June 14 with a housing developer based in San Jose, to settle claims that 20 tenants were unlawfully subjected to rental increases and six were illegally evicted.

Also, as a result of the team’s reports, lawsuits were filed by the state against the cities of Huntington Beach and Elk Grove earlier this year regarding Tenant Protection Act violations.

After the Huntington Beach City Council followed through on their brief ban of some housing applications requested by the state, the attorney general and governor responded by calling the attempts unlawful obstructionism.

The attorney general also filed a lawsuit in April against the city for failing to comply with mandates to adopt a “housing element” plan, in part, with some council members citing environmental impacts as the reason they voted against the state’s plan.

Elk Grove’s denial of a proposed housing development project in the city’s Old Town also triggered litigation from the state, announced in May, with the governor issuing a warning to other municipalities in his statement on the issue.

“Communities that fail to build their fair share of housing, including those refusing to develop desperately needed affordable housing, will be held to account,” California Gov. Gavin Newsom said in the press release announcing the action against Elk Grove.
With the new announcement clarifying the law and emphasizing the need for housing agencies to monitor all rent increase applications, the attorney general is also asking the public to report any unlawful incidents related to housing.
Travis Gillmore
Travis Gillmore
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Travis Gillmore is an avid reader and journalism connoisseur based in California covering finance, politics, the State Capitol, and breaking news for The Epoch Times.
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