AB 2364: The beatings will continue until you invest as we direct you.

Brian Brady Brian Brady Leave a Comment

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Let’s start here; rent control is bad.  It doesn’t work.

One of the consequences of rent control is that investors flee when it is imposed.  Landlords sell because they don’t like apparatchiks dictating what they can charge to rent their property.  This discourages statists.  Back in the 1980s, the statists decided that the best way to teach those property owners a lesson was the punish them.

Thus, the Ellis Act was passed as a compromise to the statists’ desire to punish the property owners.  In a nutshell, if the landlord won’t hold her property,  and rent it under the new restrictions, she has to stay out of the rental real estate business for a period of five years.

Democratic Assembly Members Chiu (San Francisco) and Bloom (Santa Monica) think the punishment should be longer.  They want to extend the banishment period to ten years under AB 2364.

This bad behavior should be rejected at hand.  The resourceful Republican Assembly member would attempt to introduce legislation which would reduce the banishment period to 12 months.

I’m not holding my breath for a resourceful Republican response but I sure every Republican votes against this bad bill.  Maybe a few sane Democrats will do likewise

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