Proposition 98: Removing Rent Control - recommend No
Proposition 98: Eminent Domain. Limits on Government Authority. Initiative Constitutional Amendment. - recommend No
Eminent domain is the concept that, under proper circumstances, your government can claim your property for the greater good, more or less. The sticking point comes in deciding when this is acceptable (note that it is, in principle, Constitutional), and how much compensation you should receive. A classic case of "obviously good" eminent domain might involve a city government using that power to buy a crackhouse froma slumlord, converting it into a community center. A classic "obviously bad" case of eminent domain involves buying up large swathes or property at cut-rate prices, then handing them over to a private developer to build a mall.
I'm sure someone can argue about the obviousness of either case, but the argument over defining and limiting eminent domain is one that's been going on for a while, and the appeal of not having your personal property bought out from under you against your will is clear.
That said, Prop 98 is not simply another take on an eminent domain amendment. It proposes to do two things:
1) Prohibit taking or private property for private use, where private use is defined as transfer of ownership or use of that property to something other than a public agency.
2) Completely remove rent control.
This second goal is mentioned nowhere in the stated goals of the proposition, and is, instead, slipped into the definitions portion of the text, in the definition of the term "Taken":
"Taken" includes transferring the ownership, occupancy, or use of property from a private owner to a public agency or to any person or entity other than a public agency, or limiting the price a private owner may charge another person to purchase, occupy or use his or her real property.
The fact that this was "snuck" into the text in the manner in which it was added makes it clear that the proposition's authors were hoping that many people would get on board with the generally laudable goal of not having homes seized to make room for malls, without realizing that they might accidentally be voting to allow themselves to be priced completely out of the rental market. That's unfortunate, as it's never a good sign when someone is attempting to trick the electorate into voting for their law.
As always, we want to follow the money. Who's paying for Prop 98's campaign? Major supporters include the California Association of Realtors Issues PAC, the AOA Apartment Owners Association PAC, and the California Farm Bureau Federation. Major individual donors to the cause include the Chicago-based Equity Lifestyles Properties, Peninsula area landlord John Vidovich who appears to have a history of tenant issues concerning rent, and mobile-home-park owner Thomas Coates (who appears to have given around half a million). The rest of the pro-98 donor list comprises a myriad of rental management companies, mobile home park owners, and individual property owners.
It seems clear, based on the money, that the breaking of rent control is the primary concern of the major donors.
Opposition to 98 comes from a variety of neighborhood groups, including several centered in the East Bay of the San Francisco Bay Area. Significant contributions against 98 have also come from the Service Employees International Union, the California Teachers Association, the California State Association of Electrical Workers, Environmental Defense, the Natural Resources Defense Council, the Audubon Society, and other environmental and labor groups. In a nutshell, that's environmental groups and unions representing lower-paid workers. The interest here is probably split between people who are concerned about the way Prop 98 would limit the ability to put restrictions on property use and people who are concerned about their union members being priced out of their homes.
We just recently saw another attempt at a disingenuous "eminent domain" bill that would have other collateral damage. Proposition 90, which voters rejected in 2006, included text that would have required extensive payouts from government agencies any time a law might have been deemed to have reduced the value of a property. Proposition 98 includes that provision and does it one better by attempting to introduce a statewide revocation of rent control. For this reason, I have to continue to recommend voting "no" on Prop 98, just as I recommended voting "no" on Prop 90.
You can find out more about who's paying money for and against Prop 98 by clicking here.
You can read the Legislative Analyst's summary and the full text of Prop 98 by clicking here.