sacramento report

by Monica Williamson

A ballot measure is currently circulating for the 2008 elections that would restrict the government’s ability to take private property through eminent domain. Proponents must collect 694,354 valid signatures by November 26, 2007. The initiative, entitled the California Property Owners and Farmland Protection Act, generally prohibits the taking of private property by a government agency for private use. This measure also intends to eliminate rent control in California.

Under the measure, taking is defined as transferring ownership, occupancy, or use of property from a private owner to a public agency, or to any person or entity other than a public agency, or limiting the price a private owner may charge another person to purchase, occupy or use his or her real property. Private use includes regulation of the ownership, occupancy or use of privately owned real property or associated property rights in order to transfer an economic benefit to one or more private persons at the expense of the property owner. The language in the initiative and statements by proponents and opponents alike make clear that the initiative, if successful, would prohibit rent control in addition to changing the rules with regard to eminent domain in California.

From the rental housing industry’s perspective, what could be better than the elimination of rent control? Indeed if this measure passes, it would undo the failed economic policy that has strangled parts of the rental housing industry in California. If it were assured passage, it would certainly warrant support from every rental property owner and their representative organizations throughout the state. Not surprisingly, opponents of the measure are floating alternative measures and have already promised an aggressive opposition campaign focused on what they believe to be the Achilles’ heel of the California Property Owners and Farmland Protection Act: the elimination of rent control.

Competing Initiatives
The League of California Cities, the California Redevelopment Association and the League of Conservation Voters are sponsors of their own eminent-domain reform proposal this legislative session, entitled ACA 8 (D-De La Torre). Opponents are planning to place ACA 8 on the statewide ballot next to the California Property Owners and Farmland Protection Act.

ACA 8 is described by proponents as legislation that will “prohibit government from using eminent domain to acquire a small business to transfer to another private party.” ACA 8 is described in an Orange County Register editorial as legislation that is “worse than doing nothing” and is simply a move by the proponents to confuse the voters in November. This is an important point. There is an old adage in the campaign industry: confused voters vote “no.” Thus, to the extent there are multiple eminent domain measures on the same ballot, the likelihood of success of any one goes down.

The opposition is formidable and their ability to fund a campaign has been amply demonstrated. In 2006, an eminent domain measure, Proposition 90, came before the voters. It failed passage. The opposition raised over $14 million to defeat it.
To add to the challenges facing the California Property Owners and Farmland Protection Act, Governor Arnold Schwarzenegger has expressed concerns about the measure and the potential inability of the state to construct new water storage facilities or to fill them with water if the measure passes.

If the California Property Owners and Farmland Protection Act were guaranteed to pass, every rental property owner and their representative organization should absolutely support it and work diligently to raise dollars toward the effort. The California Apartment Association is currently conducting its own voter survey to determine the likelihood of passage of this measure and the campaign strategies that will work to the benefit and detriment of its passage. Stay tuned for the results.

The opinions expressed in this article are those of the author and do not necessarily reflect the viewpoint of the SFAA or SF Apartment Magazine. Monica Williamson is CAA’s vice president of public affairs. Copyright © 2007 by SF Apartment Magazine. All rights reserved.