{"id":8055,"date":"2022-11-28T20:01:19","date_gmt":"2022-11-28T20:01:19","guid":{"rendered":"https:\/\/beta.homelessvoice.org\/?p=8055"},"modified":"2022-11-28T20:01:19","modified_gmt":"2022-11-28T20:01:19","slug":"rent-control-then-and-now","status":"publish","type":"post","link":"https:\/\/beta.homelessvoice.org\/?p=8055","title":{"rendered":"Rent Control Then and Now"},"content":{"rendered":"

Rent control was functionally outlawed across Florida in 1977. Now, Orange County has it on the ballot.<\/h2>\n

By Andrew Fraieli<\/em><\/h6>\n

For the first time in a Florida county in decades, the people will be able vote to establish rent control \u2014 at least temporarily.<\/span><\/p>\n

On the ballot this November for Orange County voters will be a rent control measure that commissioners narrowly passed on August 9. If the ballot initiative passes, it would tie rent increases to the Consumer Price Index for one year.\u00a0<\/span><\/p>\n

Immediately, landlords, realtors and apartment managers tried to stop it.<\/span><\/p>\n

Orange county is not alone though. Other cities and counties are trying to do the same, but the fear of lawsuits by landlords and realtors, and a lack of confidence that rent control won\u2019t make matters worse is stopping cities like St. Petersburg from trying to enact it.\u00a0<\/span><\/p>\n

Rent control, and all its contentious possibilities, is not solely limited to modern public opinion though. Whether landlords, renters or Commissioners, rent control in Florida was already shaped 48 years ago because of one Miami Beach City Council meeting in 1974.<\/span><\/p>\n

 <\/p>\n

Miami Beach\u2019s Short-lived Rent Control<\/i><\/strong><\/p>\n

The early 70s in Miami Beach saw Disney World opening in Orlando and siphoning tourism from the beach, an influx of retirees from the north, and, in 1974, the Miami Beach City Council passing a law freezing rents on almost 50,000 apartments. Rents could only increase up to 6%, and similar to Orange County today, landlords at the time immediately sued.<\/span><\/p>\n

According to the Miami Herald, apartment-building owners at the time depended mostly on fixed-income seniors moving to the beach to retire.<\/span><\/p>\n

\u201cIt was very popular,\u201d Bob Goodman, a council member in the early 1970s, told the Miami Herald. \u201cThere weren\u2019t a lot of high-rises. Condos didn\u2019t exist then. But the renters of the apartments were in favor of it.\u201d<\/span><\/p>\n

Prior city rent-control ordinances had been overturned, but 1974\u2019s lasted until Florida legislators passed a law restricting pricing rules that local governments could impose \u2014 including on landlords and therefore rent \u2014 in direct response. A year later, the state Supreme Court ruled that the 1977 state legislation overturned the rent control bill for the city.<\/span><\/p>\n

This state legislation functionally limiting local government\u2019s ability to impose rent control, the same that still stands today, has one exception though \u2014 a \u201chousing emergency.\u201d<\/span><\/p>\n

The exception says no measure \u201cimposing controls on rents\u201d can be adopted unless it\u2019s found they are \u201cnecessary and proper to eliminate an existing housing emergency which is so grave as to constitute a serious menace to the general public.\u201d It states that the measure can only be for a year at a time \u2014 if passed by the public for a vote \u2014 and specifically exempts luxury apartments, defined as having average rent of $250 at the time.<\/span><\/p>\n

This defining of luxury though may be the greatest hindrance in the law for passing rent control.\u00a0<\/span><\/p>\n

 <\/p>\n

\u201cHousing Emergency\u201d<\/i><\/strong><\/p>\n

St. Petersburg\u2019s City Council voted, in December 2021, to explore declaring the housing state of emergency necessary to pursue rent control and these other measures \u2014 per that Florida state statute requirements. In February, they declined to do it.\u00a0<\/span><\/p>\n

The main motivator was the legal opinion of the city\u2019s attorneys that the statute\u2019s exceptions would be difficult to fulfill and prove, and would make the city susceptible to lawsuits they\u2019d be \u201cextremely likely to lose,\u201d with possible damages in the tens of millions of dollars.\u00a0<\/span><\/p>\n

\u201cFrankly, you can look at it as poison pills, you know, not to be pejorative, but in the statute, it\u2019ll be very difficult for us to prevail on an attempt to defend any ordinance that implemented what they call rent control, rent stabilization,\u201d said City Attorney Joseph Patner, in City Council\u2019s Housing, Land Use and Transportation Committee meeting.<\/span><\/p>\n

As City Attorney Brad Tennant explained, due to the wording of the statute, the city must prove that the only way to address the emergency is some form of rent control, that rent control will eliminate the emergency, prove that there even is an emergency, and have findings to support those claims.<\/span><\/p>\n

Further, Tennant continued, the city starts with the burden of proof, rather than with the lawsuit\u2019s plaintiff as is the normal standard. That means, in a lawsuit, the city\u2019s findings must hold up under strict scrutiny in court.<\/span><\/p>\n

\u201cWe have to hit all those boxes, and if we don\u2019t, we\u2019ll lose,\u201d said Patner.<\/span><\/p>\n

Even proving that there is an emergency could prove difficult, as Patner explained that courts have conflicting points on defining an emergency, with most examples being war, and a specific court case stating that \u201cinflationary spiral is not an emergency.\u201d<\/span><\/p>\n

The largest hindrance might not even be the findings, but the statute\u2019s definition of luxury.<\/span><\/p>\n

According to Tennant, they do not know how to interpret the statute\u2019s limitation on luxury rentals with $250 average building rent in 1977 to modern standards. Calculating for inflation, that standard would consider any apartment over $1,150 per month to be a luxury apartment building, and therefore rent control could not apply.\u00a0<\/span><\/p>\n

To Council Chairperson Gina Driscoll, landlords might just raise rent a dollar over by the time the rent control could actually come into effect since the council can\u2019t freeze rent in between.\u00a0<\/span><\/p>\n

\u201cSo we could actually see this backfire this year, and put us in an even worse position as far as the cost of things right now,\u201d she continued. \u201cNext year it would only apply to whatever is left, before we get sued.\u201d<\/span><\/p>\n

Herself a renter, Driscoll said she\u2019d prefer to focus on immediate assistance, giving those possible tens of millions in damages to renters for the long-term, rather than to landlords in litigation.<\/span><\/p>\n

\u201cI use myself as an example because I can\u2019t afford most of what\u2019s out there right now, and it seems that the state has very cleverly put into place lots of triggers that actually make this a treacherous path to go down, if we go down it,\u201d Driscoll said.<\/span><\/p>\n

And St. Petersburg will not, as they voted 3-1 against suggesting to the entire City Council that the city has a housing emergency.<\/span><\/p>\n

 <\/p>\n

Orange County Pushes Forward<\/i><\/strong><\/p>\n

These exact fears of St. Petersburg is the basis of the lawsuit The Florida Apartment Association and the Florida Association of Realtors lodged against Orange County immediately after their ordinance putting rent control on the ballot passed.<\/span><\/p>\n

\u201cIt is adverse and antagonistic to the public interest and to the interests of the Plaintiffs and their members to allow the Rent-Control Ordinance to be placed on the ballot or enforced by Orange County,\u201d the associations said in their complaint, calling the ordinance \u201cunlawful and invalid.\u201d<\/span><\/p>\n

The county\u2019s proof of there being a housing emergency is within the ordinance, where they point out 2021\u2019s rental vacancy rate being 5.2% \u2014 the lowest on record since 2000. They also highlight the asking-rent-per-unit in the county growing from $1,357 in 2020 to $1,697 in 2021 \u2014 the highest increase since 2006.<\/span><\/p>\n

Lasting hours, the public comment in the Orange County Commissioners meeting that passed the ordinance saw supporters like struggling renters, parents and those who\u2019ve relied on rent control in the past, and dissenters that consisted of realtors, small-time landlords, and an attorney representing the suing associations.<\/span><\/p>\n

Speaking early on, Scott Glass, a partner at the law firm of Shutts and Bowen in Florida \u2014 on retainer by those associations and representing their interests in the lawsuit \u2014 held that the burden of proof of a \u201chousing emergency\u201d is on the county, and that there isn\u2019t enough.\u00a0<\/span><\/p>\n

He pointed at the population increase the county presented in the ordinance, and said it doesn’t tell whether there is a housing deficit because of it. He also critiqued their eviction statistics and that they didn\u2019t acknowledge the effects the federal moratorium on evictions might have had on them.<\/span><\/p>\n

He claimed that none of the proof presented actually showed rent control as the \u201cnecessary and proper\u201d solution either, and this is where many of the dissenters\u2019 arguments went. Multiple people argued rent control would further harm the housing stock by repelling developers, \u201cdestroying\u201d market values, and discouraging investment.<\/span><\/p>\n

\u201cI know for a fact that this measure will have a chilling effect on our housing market, and the economy as a whole,\u201d said CEO of the Orlando Regional Realtor Association Cliff Long. He said, rather, the county should disperse federal rental funds \u201cto assist the vulnerable, and work with the housing industry to rapidly increase inventory in Orange County so we can create a real and lasting solution to this problem.\u201d<\/span><\/p>\n

\u201cIt is my belief that these immense rent increases only benefit the landlords and investors trying to recoup their losses from the pandemic,\u201d said Kristell Miles, who\u2019s in support of the ordinance. Miles continued that she\u2019s had a 30% increase in rent, and that rent control would give time to find a better, long-term solution.\u00a0<\/span><\/p>\n

Jessy Correa, a \u201cprofessional, hardworking mom,\u201d said her rent increased by $300 within the year, and pointed out that pay was not keeping pace to be able to afford them.<\/span><\/p>\n

Dissenters vastly outnumbered supporters of the bill, with all having ties to real estate in some form. One small landlord, Andrea Schekolin, said if landlords can\u2019t get a \u201cdecent return on our investment, we will have to turn to other sectors of the economy,\u201d lamenting that these units would simply be withdrawn from the market, worsening the problem.\u00a0\u00a0<\/span><\/p>\n

\u201cStock markets do not call at night complaining that the toilet is clogged,\u201d she said.<\/span><\/p>\n

County Commissioner Emily Bonilla, who voted in favor of the ordinance, later spoke in response to one speaker who asked the commissioners to not cause a hostile environment for housing.<\/span><\/p>\n

\u201cWhat is a hostile environment for housing right now is forcing people to live on couches, floors, in cars, tents, streets, under bridges and on benches. Landlords and developers have created a hostile environment for housing and they call it \u2018Renting the American dream,\u2019\u201d she said.<\/span><\/p>\n

The ordinance passed 4 to 3.<\/span><\/p>\n

\u201cI don\u2019t know what a rent control would do because there\u2019s still going to be people, regardless, who are going to struggle to pay their rent,\u201d said Mayor Demings before the vote, and dissented, highlighting home-owners who also have the possibility of eviction and need help.<\/span><\/p>\n

\u201cEven if we decide to advance the rent stabilization ordinance to the ballot, it would be all for naught if we don\u2019t do these things to keep people in their homes right now.\u201d<\/span><\/p>\n

 <\/p>\n

Others Follow Suit<\/i><\/strong><\/p>\n

Other cities are still trying, or being pressured to, pass rent control measures.<\/span><\/p>\n

Lake Worth Beach, lying between St. Petersburg\u2019s fear of a detrimental lawsuit and Orange County\u2019s ballot measure, has declared a state of housing emergency already. Now, they must develop proof to support their decision before they can pass a ballot initiative onto the people.<\/span><\/p>\n

The council meeting where they discussed the issue was a similar scene to Orange County: it lasted hours, saw struggling renters, parents, and those who\u2019ve relied on rent control in the past.\u00a0<\/span><\/p>\n

One speaker expressed that she doesn\u2019t know if she\u2019ll be able to keep a roof over her children\u2019s head, as she\u2019s a mother of three, pregnant, on food stamps, and rent went up $300 in one month. Another speaker said his rent went up $750 as his landlord sold his rented home to another, and now his dog won\u2019t be allowed there.<\/span><\/p>\n

Unlike Orange County, no one spoke against possible rent control.<\/span><\/p>\n

\u201cOur state just does not care about us. Tallahassee is not going to do what needs to be done to protect renters, and our community,\u201d said Commissioner Reinaldo Diaz. He described the state of emergency as \u201cstemming the bleed,\u201d not a proper solution, but it does give time. He believes the rising rents are not just inflation, but \u201cpeople taking advantage.\u201d<\/span><\/p>\n

According to FIU\u2019s 2021 <\/span>Palm Beach County Affordable Housing Needs Assessment<\/span><\/a>, 65.5% of Lake Worth Beach renters are cost-burdened, paying over 30% of their income toward rent \u2014 one of the highest rates in Palm Beach County.\u00a0<\/span><\/p>\n

Zumper\u2019s National Rent Report shows St. Petersburg in the top 30 cities for rent costs at $1,570, with a year over year increase of 12%. Orlando just beats it out at $1,700 and a 16% year over year increase, with Tampa at $1,800 and a 34% year over year increase.<\/span><\/p>\n

Income is also not matching these rent increases.<\/span><\/p>\n

The livable wage for the Tampa-St. Petersburg-Clearwater metro area, according to MIT\u2019s livable wage calculator is $17.17. This supports one person, no children, and affording a studio apartment, with the bare minimum for other expenses like food and clothes.\u00a0<\/span><\/p>\n

St. Petersburg may have declined pursuing rent control, but <\/span>protests continued into August<\/span><\/a> pushing them to put it on the ballot. In February in Tampa, after the city similarly declined to put the city in a housing state of emergency, <\/span>protesters continued<\/span><\/a> to fill the council chambers demanding it be put to the ballot.<\/span><\/p>\n

Whether rent control is a solution or not, many supporters and council members pointed out that it is at least a stop-gap.<\/span><\/p>\n

\u201cThis is not a long-term solution,\u201d said Miles at Orange County\u2019s public comment, who had a 30% increase in rent in one month. \u201cBut this is something that will give not only the landlords, but the tenants the opportunity to come up with a solution that can help all of us in an amicable way.\u201d<\/span><\/p>\n","protected":false},"excerpt":{"rendered":"

Rent control was functionally outlawed across Florida in 1977. Now, Orange County has it on the ballot. 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