Policy Update: Temporary Rent Stabilization Moves Forward in Sacramento City Council

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The Sacramento City Council’s Law and Legislation Committee unanimously passed a temporary rent stabilization ordinance on October 23 that will now proceed for final action to the Sacramento City Council.

The temporary rent stabilization ordinance is vastly different from initial proposals that included mandatory rent caps, rent control boards, and other measures that would have made it more difficult to build housing in a city that desperately needs to increase supply. It was through the advocacy work done by the Metro Chamber, its Members and many of our partners within the business community, that made it possible to neutralize these previous proposals that would have had devasting effects on our economy and workforce.

The proposal passed by the Law and Legislation Committee is focused on providing near-term stability for renters while focusing on increasing housing supply in the medium and long-terms. It was brought forward by Councilmembers Steve Hansen, Rick Jennings and Eric Guerra and would expire in three years.

The proposed ordinance has three main components including:

1) Identifying ways to reduce fees and expedite permitting and similar approvals for affordable housing projects, with an emphasis on development in commercial corridors.

2) A mandatory, nonbinding mediation process for landlords and renters when rents are raised more than 6%; and

3) A requirement for landlords to offer tenants the choice of an 18-month lease, but that allows for both parties to negotiate a different term.

The proposal passed 4 to 0 with opposition coming from rent control advocates seeking a ballot measure that’s qualified for the 2020 ballot.

The compromise plan by Hansen, Jennings, and Guerra will be reviewed and considered by City Council in the next few weeks. The Metro Chamber will continue to engage on this vital issue of rent control and housing as part of its efforts to ensure a strong business climate in the city and beyond.

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