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What about Proposition 99

February 19th, 2008

While Proposition 98 got attention earlier, it is not the only item before California’s voters in June that will consider the future of eminent domain in the Golden State.

Most significantly, an alternative exists to Prop 98 that comes without a concurrent impact for rent control in the Golden State.  Proposition 99 is an alternative.

Both would constrain the use of eminent domain in the state. That follows on the tide of anger among all different groups of people after the Kelo v. City of New London decision. That decision extended the use of eminent domain, traditionally stipulated for public purposes, to include the taking of land for economic development.

What has followed in California certainly builds on the ensuing anger. What is interesting to watch, though, is how the issue of rent control has grafted itself into this debate.

Rent control has a lot of critics with a lot of valid points. Nonetheless, it does matter a great deal to hundreds of thousands of California residents. In fact, it governs the economic terms of life for almost 600,000 Los Angelenos alone.

Proposition 99 also seeks to limit the power of government agencies to seize land in the name of economic development. However, it does not include a rider to simultaneously cease the proliferation of rent control.

Prop 99 doesn’t have the attention, perhaps because it doesn’t have the dollars. Mobile home park owners are among the forces that have contributed to the effort to limit eminent domain. Sam Zell, an owner of Equity Lifestyle Properties (and a few other things), contributed $50,000.

Other big contributors for the California Property Owners and Farmland Protection Act (as Proposition 98 would be called if ratified) include the Howard Jarvis Taxpayers Assn., which gave $100,000 to the effort and lent the campaign $200,000; the Western Manufactured Housing Communities Issues PAC, which contributed $150,000; and the Apartment Owners Assn. Political Action Committee, which put in $100,000.

A Western Manufactured Housing Communities Association press release casts opponents of eminent domain in a bad light — as people willing to make farm owners other small businessmen vulnerable to government greed. Their argument sidesteps one of the most glaring differences — the lack of a rent control provision — and instead focus on the assertion that Prop 99 would not create adequate protections against eminent domain.

Prop 99 has some specific requirements:

  • no eminent domain for owner-occupied homes
  • only for public work or improvements
  • government is seeking to abate a nuisance, an environmental hazard, or protect public safety.

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February 19th, 2008 15:27:18
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Don Evans
March 21, 2008

Prop 99 isn’t as bad as Prop 98 but both will put community redevelopment out of business. The CRA in Los Angeles has removed blighted areas and created some of this city’s most attractive areas. Examples include Staples Center, Live in LA, and North Hollywood redevelopement.

These two laws enable the poor to live in slums.

[...] 16, 2008 As the days approach for California’s decisions on Proposition 98 and 99, it is worth looking at how eminent domain has been utilized in other parts of the country to [...]

[...] scheduled for the June ballot in California, would redirect property rights. Proposition 98 and 99 both put constraints on eminent domain, but 98 also throws out a number of other housing [...]


Bill
April 30, 2008

Prop.98 would not affect rent control until the renter moves out. Rent control is stealing by the government without compensation. Does government tell the grocery store owner what to charge for bread and milk? No!!! Rent control causes rents to be higher. When a tenant moves out a landlord will try to get as much as he can to compensate for rent control. The government should provide low income housing not landlords. Prop.99 is a scam, Prop98 is the real deal.


samsondoggie
April 30, 2008

Bill– A lot of people don’t like rent control, at all. You’ve mentioned some good reasons — government price rules being one. I think there are some price supports for milk, though, but they might be set by dairy farmers. But with housing, rent control seems to often give “economic rent” to existing renters, at the expense of everyone else.

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