Working to Keep Santa Monica Affordable
January 8, 2020 8:30 AM
by Barbara Collins
This article originally appeared in the January edition of Seascape.
Across the city, many long-time residents of Santa Monica are concerned that they’ll be pushed out of the community they know and love. But as Santa Monica grows and changes, so must our ability to ensure that the right systems and safeguards are in place, especially for those at risk of losing their homes.
One of the most impactful policies to keep our city economically inclusive is Rent Control. Adopted more than 40 years ago, Rent Control affects nearly 28,000 households today. Thanks to Rent Control, tenants can rest assured that their monthly costs won’t balloon beyond the annual cap set by the City (most recently 2% or a maximum of $44). Rent Control also works to ensure renters are treated fairly by developing and implementing particular policies that guide renting in Santa Monica.
However, for those cash-strapped families with growing needs, it has become near impossible to move within the community. Due to the 1995 Costa Hawkins Act, State law allows all California lessors to raise rents to the market rate once a tenant moves out, resulting in 300 to 500 Santa Monica units “resetting” rents every year. This means that a rent-controlled apartment might be rented for $1,000 per month and once the tenant moves out, the one-bedroom apartment can be reset to the current market rate of $1,824 (source: Rent Control Board’s 2018 Annual Report).
While this is considered by the state to be a fair policy for landlords, it has resulted in fewer options for low- and moderate-income families in Santa Monica.
The City of Santa Monica is doing everything we can to make sure that people remain in this community, especially those who have been long-time residents and employees. Through City policy, programs, and services, the City provided 6,000 different forms of assistance to households in 2019, with plans to increase that number over the coming years. This is important because the City estimates that a household now needs to make a minimum of $90,000 annually to reasonably afford a one-bedroom apartment. And for families, that can mean a 3-bedroom apartment requires an annual household income of at least $134,000. These estimates are based on national best practices of spending one third or less of your monthly income on housing.
Below is an overview of all the housing-related programs and services the City is working on to ensure low-and-moderate-housing is available here. And if you’re interested in diving deeper into what the City is doing—and possibly applying for housing programs—please visit santamonica.gov/housing.
Together, we are continuing Santa Monica’s commitment to being an inclusive and diverse city by addressing the housing needs of everyone in our community.
5,900 SANTA MONICA HOUSEHOLDS ARE SERVED BY CITY HOUSING PROGRAMS
Authored By
Barbara Collins
Housing Manager