City Looking at Housing Options: Burlingame Leaning Away from Rent Control Measures

Wednesday, January 7, 2015
Angela Swartz
The Daily Journal

With some Burlingame residents concerned rentals are growing too expensive in the city, the City Council held a study session and pubic forum on housing policy options to try to figure out solutions to some of these issues.

Councilmembers noted Monday night that rent stabilization, or rent control, that some have suggested might actually make matters worse. At the same time, the city is working on updating its housing element plan that hasn’t been touched since 1969, which can be considered a roadmap to future growth and development of the community, said Mayor Terry Nagel. Recently, as a means of promoting affordable housing policies contained within the Burlingame Downtown Specific Plan as well as the city’s housing element, the city recently issued a request for proposals seeking qualified developers interested in partnering with the city to develop city-owned parking lots F and N, located in the southern portion of downtown Burlingame, with affordable housing.

“This has been an issue that’s been around for some time,” said Vice Mayor Ann Keighran. “I think rent control is the issue — I’m very familiar with the issue in San Francisco. It will benefit the current people who are renting, but not the people who are trying to find a place. The economy there becomes stagnant in regards to rentals; it takes forever to build anything in San Francisco and people move down the Peninsula when they don’t have a place to live in San Francisco. … We are now in a cycle where the rents have increased; that’s the way economics works.”

Current Craigslist listings for apartments in Burlingame include a $1,250 a month cottage, a $1,350 260-square-foot studio, a $1,385 studio near Broadway, $1,550 apartment on Park Road, all the way up to $9,995 per month for a four-bedroom home in the Ray Park neighborhood, $3,800 for a two-bedroom apartment on Bellevue Avenue and up to $3,043 for a one-bedroom townhouse.

A roadblock to rent control is Burlingame’s Ordinance 1356, or Measure T, an existing law, in the form of a voter-adopted ordinance, that prohibits rent control or other direct regulation of sale, lease or rental prices for real estate in the city. This would have to go back to voters to be changed.

Housing prices are primarily set by market forces, but cities may try to influence affordability and stability, using certain strategies, according to a presentation by City Attorney Kathleen Kane. The city can set up informational and outreach programs with information to renters and landlords about best practices and resources for assistance. It can also encourage development and retention of affordable units through development incentives to build affordable units and tax and fee breaks for eligible projects. It can require housing impact fees and mandatory programs such as payment for or building of affordable units as a condition of approval. It can enact tenant protection and just cause for eviction ordinances aimed at addressing living conditions and forced turnover, according to Kane’s presentation.

Paul Stewart, government affairs director for the San Mateo County Association of Realtors, encouraged the council to avoid trying to tackle rent control.

“You (the council) should be continuing to amp up incentive programs to increase the supply of affordable housing in San Mateo County,” he said. “Punitive measures are failed housing policies. Rent control and rent stabilization causes housing crisis. It’s a matter of amping up current policies. The market will determine the upper limit.”

But for residents like Cynthia Cornell of Burlingame Advocates for Rental Protections, there needs to be more done to help renters in the city. She suggested hiring a mediator between renters and landlords and considering enacting a just cause eviction policy. The city would be hard-pressed to take on more staff for a mediator, so Nagel suggested the group go to the county with such a request.

Daniel Saver, housing staff attorney with the Community Legal Services in East Palo Alto, a nonprofit that provides assistance and gives legal advice to tenants who are in distress, said the housing crisis is blossoming in San Mateo County.

“There’s a dual strategy to consider: incentives and increasing production of affordable housing,” he said. “When you have production policies in place it will take years and years to see the fruits of those policies in place. What’s going to happen in the meantime? I encourage staff to consider some preservation options. Just cause for eviction protections are still very effective tools.”

Josh Hugg, program manager for the Housing Leadership Council of San Mateo County, explained how Silicon Valley has become a pressure cooker since there’s unlimited capital, but also still restaurants paying extremely low incomes to workers.

Some councilmembers still felt disappointed with the study session in which they were hoping to get some more creative ideas on creating more affordable housing.

“This is a really, really complicated issue,” said Councilman Ricardo Ortiz. “You could add 1,000 units and the rents would still be right about where they are until the cycle changes. I don’t think rent control is effective. I’m disappointed I heard same old same old. I was hoping to get some creative new ideas; I don’t see anything new.”

Councilman Michael Brownrigg agreed it’s a complicated issue.

“I think Burlingame is a little bit different than people would realize,” he said. “We share a zip code with Hillsborough; this is an expensive area. I’m pleased to say: overcrowding is a very small issue in Burlingame. I think we’re doing something right; this is to make sure we don’t go off the rails.”

The city is nowhere close to any kind of legislation, he said.

“The question is, ‘how do we make sure Burlingame stays stable for a wide variety of incomes?’” he said. “I think this is an important conversation. I’m glad we’re starting it. I think it’s a long road and we’re glad we’re on it.”

Burlingame is unusual in that 51 percent of its population is renters — a high number, Nagel said.

“We are doing some things already we can point to,” she said. “We do have to go up if we’re going to improve and make our city a dynamic community.”

The city could look into parcel or sales taxes to have the community take action rather than enacting punitive measures, said Joshua Howard of the California Property Managers Association.

Councilman John Root would like to see the conversation about housing continue. 

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