Pasadena Chamber Board of Directors Oppose Measure H on November Ballot, Lay Out Their Case

The Pasadena Chamber of Commerce Board of Directors at its most recent meeting voted unanimously (with one abstention) to oppose the passage of Measure H on the November ballot. 

Measure H is a city charter amendment measure that would establish rent control in Pasadena.

If passed, the Measure would limit rent adjustments in Pasadena annually to 75% of the percentage increase in the Consumer Price Index for multifamily rental units built before February 1, 1995; prohibit eviction from rental units, except for just cause based on 11 specified criteria; and create an independent Rental Housing Board appointed by the City Council to oversee and adopt rules and regulations related to the Measure.

“Measure H is riddled with problems,” Pasadena Chamber President and Chief Executive Officer Paul Little said in a statement. “Worse, it will not have any of the purported benefits.”

In a press release, Little cited the Board’s reasoning behind its opposition to the measure.

According to Apartment Guide and Rent.com, Little said,  rent control does not translate to rental affordability. In the local market, he said, Santa Monica has had rent control in place for decades yet has the fifth highest rental housing costs in the US

“It’s common sense,” according to Little. “Since existing rents are kept artificially low, any new units are priced much higher to guard against the imposition of limits in the future. Existing rent-controlled units see big increases that adjust rent to above market rates each time they become vacant. We see that happening in Santa Monica today. If Measure H passes in Pasadena, it will happen here, too.”

Little said the Chamber Board believes that despite claims of the proponents, people who will be hurt by Measure H are those who have older buildings in Pasadena, and who are mostly local owners of one or two buildings who rely on the income from their units to pay their bills. Those property owners have seen losses mount as a result of Pasadena’s eviction moratorium, rent freeze and other measures implemented to keep people housed during the pandemic that are just now expiring. Apartment owners are just now being allowed to collect past due rent and re-invest in building maintenance and upgrades.

“Each year affected apartment owners will fall farther behind as rent increases, by charter amendment, are not even allowed to recoup yearly cost increases,” said Little. “Why would anyone want to own apartments in Pasadena if you cannot raise rents to compensate for cost increases?”

Little said that judging from experiences elsewhere, the Chamber Board believes passage of Measure H would suppress the development of new rental housing units in Pasadena and lead to significant rent increases when rent-controlled units become vacant.

Measure H could also increase the number of condo conversions, Little believes. 

“Imposition of Measure H will decrease production of rental housing,” according to Little. “Fewer units mean a tighter housing market which generates higher costs for renters.”

Any apartment building constructed since 1995, including most of the corporation-owned large apartment buildings in Pasadena, are exempt by California law. That law, the Costa-Hawkins Rental Housing Act, was reaffirmed by California voters in 2018.

“Worst of all,” Little said, “passage would create a self-governing board with no accountability to voters, the City Council or anyone at all.”

The Housing Rental Board would determine rent adjustments annually as set forth by the Measure; conduct investigations; adjudicate petitions; and establish regulations, landlord fees and penalties for non-compliance with the Measure. 

“This board will not be subject to oversight by voters, the City of Pasadena or our City Council,” according to a Chamber statement. Individual board members could be recalled.

An analysis of Measure H by Pasadena City Attorney Michele Beal Bagneris estimated the start-up cost at $310,000 and annual estimated costs of $5,453,460 based on the number of staff members required to support the rental board as well as board members’ salaries. 

“Pasadena does not need a rogue agency with a $5 million per year budget, taxing apartment owners as it pleases, setting its own salary and answerable to no one,” Little said. “Absent accountability and oversight, Measure H is an invitation to influence peddling and corruption.”

The Pasadena Chamber of Commerce and Civic Association was founded in 1888 as the Board of Trade. It currently serves more than 1,250 members.