Last month California announced that in order to combat a staggering growth in homelessness it will implement rent control laws effective January 1, 2020.
According to Market Watch:
The law limits rent increases to 5% each year plus inflation until Jan. 1, 2030. It bans landlords from evicting people for no reason, meaning they could not kick people out so they can raise the rent for a new tenant. And while the law doesn’t take effect until Jan. 1, it would apply to rent increases on or after March 15, 2019, to prevent landlords from raising rents just before the caps go into place.
Michigan’s Affordable Housing Crisis
California’s new law, as well as Oregon’s passage of the Rent Control Bill, and demands for other measures in Boston, is in response to an Affordable Housing Crisis that we have been experiencing across the U.S.
In fact, over two years ago a Rent Control Bill was introduced in the Michigan House of Representatives- you can check out my post on that here
That Bill made no traction. It died in the Local Government Committee.
The Bill was most certainly a response to Michigan’s Affordable Housing Crisis.
It has been several yeas since the Grand Rapids Chamber hosted an Issue Summit on the Housing Crisis in Grand Rapids.
The Summit brought speakers representing many community stakeholders, including representatives from Grand Rapids Urban League,Rockford Construction, ICCF, MSHDA, and many local non-profits, including Mel Trotter Ministries, HQ, Heartside Ministries, on the lack of affordable housing, what is as Mayor Bliss emphasized, admittedly, “a complex issue”.
I have previously offered my own perspective, both as a lawyer representing real estate developers/investors, and as Board Chairman at Mel Trotter Ministries.
Private and Public Community Stakeholders Doing Their Part
A few years have gone by since Kent County was first acknowledged to have an affordable housing crisis. The crisis is still present. There many community stakeholders that are actively playing a role in being part of the solution: providing housing for the most vulnerable. I think of a company like Urbaneer and Bruce Thompson and applaud Bruce for his work. We need more companies like Urbaneer – providing innovative solutions to a housing crisis.
I also think of the non-profit sector – organizations like ICCF and Mel Trotter Ministries finding unique ways through social enterprise to house the most vulnerable.
Kent County has provided several unique tools, including the Eviction Prevention Program.
I don’t think rent control is the answer.
I believe we all have a role to play.
We should all ask ourselves: Am I working to build a better community?
E-mail: Jeshua@dwlawpc.com
Twitter: @JeshuaTLauka
Jeshua Lauka's Business and Real Estate Law Blog 