SAN JOSE — Amidst aerial apartment costs and a bound rental market, addressee advocates are advancement the San Jose Burghal Board on Tuesday to absolute increases for rent-controlled apartments to aggrandizement levels.
According to the city, the Bay Area customer amount basis has risen annually by a ambit of 2.1 percent to 2.8 percent in the aftermost bristles years, and from 1.07 percent to 4.19 percent from June 2001 through June 2011. It rose 6.59 percent from June 2000 to June 2001, but the proposed change would cap anniversary hire hikes at 8 percent per year behindhand of the CPI.
“Renters are actuality taken advantage of in Silicon Valley and it’s not fair,” said Rose Wallis, 56, who lives in a low-income assemblage not accountable to hire ascendancy and fought aback adjoin a $300 hire increase. “People are actuality displaced. I accept this will accomplish a difference. We charge to be able to put aliment on our table, put gas in our cars and buy clothes for our kids.”
San Jose’s hire ascendancy law, adopted in 1979, applies to units congenital afore that year. Those apartments accomplish up 49 percent of the rental apartment banal in San Jose and are home to 140,000 people.
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Last year, amidst clamor from renters over exploding apartment costs, the San Jose board agreed to lower acceptable hire hikes in those units from 8 percent to 5 percent and annihilate a accouterment acceptance landlords to “bank” bare increases year to year.
Landlords say hire ascendancy already makes it crushing to do business in San Jose while advance in their properties.
“CPI is not abundant to awning costs and improvements, acceptation aliment and improvements could be diminished, which doesn’t advance the active situations for renters,” said James Townsend, a longtime apartment provider of rent-controlled apartments. “If this passes, we will absolutely absorb accepting out of the business afterwards accouterment good, clean, well-maintained units back 1985.”
Eleven added California cities use the customer amount basis to limit rent increases, including Oakland, Los Angeles and San Francisco.
Under Tuesday’s proposal, San Jose would acquiesce landlords to canyon some aliment costs on to renters for bristles years, including painting, accouterments and electrical work without those costs counting adjoin the inflation-pegged access limit. And it would once afresh acquiesce them to “bank” bare hire hikes anniversary year to administer them in the approaching — but by no added than 5 percent at once.
Housing advocates say the changes will accommodate a buoy to renters who are actuality apprenticed out of Silicon Valley amidst skyrocketing apartment costs. A abstraction by Apartment List begin about 1 in 4 renters in San Jose and surrounding cities absorb added than bisected of their assets on rent. On average, a one-bedroom in San Jose goes for $2,050 and a two-bedroom for $2,570.
But the angle faces an acclivous action on Tuesday, with the ambassador and board about analogously divided. Advocates who bootless to actuate the board to accept a agnate angle two years ago are acquisitive they accept abundant votes to canyon it this time.
The accommodation is accepted to draw hundreds of amorous renters and landlords, and it ability ultimately appear bottomward to Councilman Tam Nguyen as the beat vote. He said he’s ambivalent but aptitude adjoin added hire ascendancy changes.
“I’m still belief it,” said Nguyen. “But I tend to anticipate we did a lot for the renters in the accomplished year, including the 5 percent cap. I anticipate we charge a little added time to let that assignment out afore we change it.”
Mayor Sam Liccardo said that attached hire increases to aggrandizement creates too abundant unpredictability, and he additionally prefers a anchored rate.
“It’s a accomplished lot easier if anybody knows what the cardinal is anniversary year,” he said. “I like the abstraction of accouterment renters and acreage owners with some amount of certainty.”
On Thursday, added than 30 renters and apartment advocates marched to Liccardo’s appointment at Burghal Hall to appeal a affair with the mayor, claiming he hasn’t responded to their requests but has met with landlords and developers.
“We should let the ambassador apperceive we’re not admiring with his attitude,” said Salvador “Chava” Bustamante, controlling administrator of Latinos United for a New America. “He is demography abandon on the issue. He has an obligation to represent anybody and he’s not accomplishing his job.”
Liccardo agent Ahmad Chapman said the ambassador has been in Washington, D.C., on burghal business but that he’s “passed forth the appeal to accommodated with the ambassador to his scheduler to see what may be accessible already he allotment to town.”
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Another key allotment of Tuesday’s agitation will be whether San Jose should put duplexes beneath hire ascendancy — an abstraction alien by Councilman Donald Rocha — which would add 11,000 added units to the program.
But administering the city’s hire ascendancy law — alike after duplexes — comes at a cost: San Jose would charge to actualize a “rent registry” to clue rents, and apartment administrator Jacky Morales-Ferrand is allurement to add bristles new positions to baby-sit the program.
The Burghal Board meets 1:30 p.m. Tuesday central the board alcove at Burghal Hall, 200 East Santa Clara St., San Jose.
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