CORRESPONDENCE - WS-1 OPPOSITION

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PACIFIC WEST ASSOCIATION OF REALTORS' -+fie February 2, 2018 Mayor Miguel Polido 22 Civic Center Plaza Santa Ana, CA 92701 RE: Opposition to Rent Control Mayor Polido: At your February 6, 2018 City Council meeting you will hear a presentation on rent control/rent stabilization. The Pacific West Association of REALTORSCQ opposes rexrtcontrol and its affiliated policy "Just,Cause Eviction" inthe-strongest possible terms, - Rent Control is a well-intentioned policy "cure" for the serious problem of housing affordability, but it does not work. In fact, the "cure" is worse than the disease. By artificially constraining rental prices, rent control removes the incentive for landlords to improve their properties, A landlord who will not_reccive.afair rate of return on the property cannotaffordto spend money to, maintain it, When property maintenance declines, it has a spiraling effect on the community. Declining properties lower values. This lowers tax revenue to local government. Less tax revenue undermines governmental maintenance and services, and the cycle continues, Rent control is a disincentive for builders and investors to bring new properties to market. Fewer properties constrains an already tight supply of rental housing, putting even more upward pressure on the price of existing rentals. In other words, rent control exacerbates the very problem it is designed to solve. Rent control is not fair. Most landlords are decent, respectable business people who abide by their leases and who want to keep the tenants in their homes. Many are also small business persons, and in some cases retirees on a fixed income, who rely on the steady income of their rental to survive, Artificially constraining the price they can charge, and imposing burdensome bureaucracy on their business, hampers their way of life, (714) 245-5500 --www.pwnnet— FAX (714) 245-5599 Ld 1601 E. Orangewood Avenue—Anaheim, CA 92805 REALTOR 3750 (11roy Airport Way, Su ite 120-- Long Beach, CA 90806