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Greater Downey Realty Board Threatens Lawsuit to Allow No Fault Evictions

Courtesy Marketwatch.com

BY BRIAN HEWS • November 12, 2019

Assembly Bill 1482, signed into law by Gov. Gavin Newsom, will impose statewide rate control and prohibit no-fault evictions come Jan. 1.

The rent cap bill essentially makes rent control the law of the land in California. There is only one other state in the country doing this- Oregon.

Under the law, for the next decade landlords can only raise rents for an existing tenant by 5% after inflation. 

In addition, it will be harder for a landlord to kick a tenant out, mandating that landlords must have a legitimate reason for eviction.

A few exception exist, the rent cap will initially only apply to apartments built before 2004, it would also exempt single-family homes and duplexes where the owner lives in one of the units.

Despite the exceptions, unscrupulous landlords all over the state are trying to get ahead of the law by callously evicting tenants-without cause-to proactively raise the rent. 

And Downey Councilman Sean Ashton is trying to do something about it in his city.

Ashton is asking the City Council, at tonight’s meeting,  to discuss an emergency ordinance that would prohibit landlords from evicting tenants without cause, and, “give direction to protect tenants until Jan. 1, 2020, when AB 1482 takes effect.” 

Ashton proposed the discussion at the council meeting three weeks ago, two days later he came under fire from the Greater Downey Association of Realtors (DAOR). 

Amid the flurry of no fault evictions, the DAOR and its President Dan Navarez, who’s works out of an office in Anaheim, threatened a lawsuit.

In a letter to Downey Mayor Rick Rodriguez, Nevarez said they oppose the bill and basically threatened the City.

[Passing the emergency ordinance] “will force us to take legal action and seek an injunction,” Nevarez wrote. 

Several cities have passed an urgency ordinance similar to what Ashton proposed, including Bell Gardens, but that did not matter to Nevarez.

“The City Council…. will join us in waiting until January 1, 2020 when AB 1482 goes into effect, rather than making any attempt to implement new ordinances that would place moratoriums on evictions,” Nevarez wrote.

It is unclear what rights Nevarez is referring to, other than the rights of greedy landlords.

A recent  Zillow report found that last year only about 7 percent of properties in the state had an increase larger than 5 percent.

An urgency ordinance requires a “super-majority,” meaning four of the five council members must vote in approval of the ordinance for it to take immediate effect. 

The proposal by Ashton could trigger recusals on the Council; Mayor Rick Rodriguez will certainly recuse himself.

Ashton told HMG-LCCN, “I firmly believe I am on the right side of this, many residents have told me, and council members, about nightmares with their landlords abusing the no-fault eviction loophole, something should be done, let’s at least start a conversation.”

  • Pacific Realtors says:

    Easy argument to make before a jury………..

    Most jurors understand that government is for the people of the People by the people. the Downey council is acting for all the people, not just a select group of investors; compared to the MLS service.

    Board of real estate is looking out for only real estate and also to make sure that they increase their multiple listing service. This is a very one-sided lawsuit.It will loose in the courts.

    Downey is home to many multi family housing, granny flats, guest houses and apartments.

    If readers remember a few years ago, the multiple listing service in Downey, started campaigning for one candidate only, and that candidate lost the race. Multiple listing services only work with Realtors and buyers/sellers and stop getting involved with politics. Downey board of realtors is one of the few boards to get involved with politics, realtors do not like this. it can really injure a seasoned realtors clientele farming base.

    Lot of realtors have vacated Downey MLS and has joined OC MLS.

    My own opinion, I think multiple listing services should be vacated throughout the state, Zillow + realtor.com do a good enough job and we don’t need this Middleman. Multiple listing service does little good, just another shark attacking realtors commissions and being passed on to buyers/ sellers. Escrow is another no good service, with very little values. Computerization have replaced escrows.

    Bottom line, more and more buyers and sellers are not using realtors nor escrows. Transactions are closing on cash basis and non recorded titles/deeds of trusts. Greed by MLS/Escrow/Title Ins has created a new ghost to appear, in many transactions in both Res/Comm transactions and way to keep Prop 13.

    Many homes in SFV want our current governor recalled, as Gavin wants to destroy Prop 13, which voters put in to law back in 1970’s.

    2019, California has one of the lowest levels of active realtors in many decades. Dot com industry has white washed the realtor, where for many parts, not needed anymore.Some properties realtors are superb, but this week, NAR vacated pocket listings, which only killed the few realtors we have left. NAR forbids pocket listings to be held by realtors, so more and more Esq will be holding exclusive listings for privileged buyers/ sellers.