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DRAFT FOR ATTORNEY REVIEW — NOT FINAL

§ 1805

Citation
§ 1805
Parent Document
Bisno v. Santa Monica Rent Control Board, 30 Cal. Rptr. 3d 441 (2005)
Jurisdiction
California (state)
Effective Date
2005-07-14

Full Text

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It bears noting that by limiting landlords to a fair return on investment, the RCL essentially requires landlords to subsidize rent in order to alleviate the hardships attending a severe housing shortage. It is one thing to require landlords to subsidize the rent of those who reside principally in their rent-controlled units so that they will not be forced out of the Santa Monica housing market. It is quite another to require landlords to subsidize the rent of those who use their rent-controlled units for other purposes. Doing so adds to the landlord’s investment risk. This provides a strong disincentive for landlords to remain active or to expand their presence in the affordable housing market. Providing such a disincentive contravenes the purposes of the RCL, while removing it serves them.