Housing affordability in Berkeley has hit an unprecedented low. To meet the state's Regional Housing Needs Assessment (RHNA) targets, the city must build 1,100 new housing units annually over an 8-year period[1]. While the increasing development in downtown Berkeley might suggest progress toward this goal, the reality is different. Most of the 1,728 units added since 2022[2] are designated as "market-rate" rentals, leaving a significant gap in affordable housing options.
After World War II, there was a surge in housing as basements, attics, and garages were converted into livable spaces. Homeowners were encouraged to create these units to accommodate returning soldiers and their families. Many of these units still exist today, serving various purposes such as caregiver accommodations or guest spaces for visiting family. However, not enough of them are made available as rental units.
Over time, owners of these units have expressed increasing concerns about their limited ability to use the space flexibly. That is because under current rental laws, owners are not allowed to terminate a tenancy at the end of a lease term. This prevents them from offering the unit to tenants when it's available, but then reclaiming it for personal use when needed. This restriction is particularly burdensome for owners who live on-site with their tenants as they are more likely to have personal reasons to need to use that secondary unit.
Single-family homeowners are also hesitant to rent out their homes as they fear the potential $27,000 relocation fee required to reoccupy the property after being away for couple of years. This all stems from Berkeley's strong tenant protection laws which although undoubtedly protect tenants, have an unintended consequence of constricting housing supply.
All of this leads to lack of flexibility for personal use of secondary units and places Berkeley at a critical crossroads. It's evident that we can't simply build our way out of the affordability crisis, nor can we rely on owners to offer available units without providing some form of incentive for them.
Measure CC eases rent regulations for owner-occupied two-unit properties and single-family homes. If an owner and a prospective tenant agree on a lease term that suits both parties, there should be no barrier to this arrangement. Allowing for more flexibility for small owner, we can look to community members that can boost Berkeley’s housing supply. And while rent stabilization benefits current tenants, the shortage of affordable housing is what keeps new residents from finding a place in Berkeley. Measure CC will provide more affordable options for newcomers to the rental market.
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[1]Final Regional Housing Needs Allocation (RHNA) Plan; San Francisco Bay Area, 2023-2031. Association of Bay Area Governments. November 2022, pg. 25. https://abag.ca.gov/sites/default/files/documents/2022-12/Final%20RHNA%20Methodology%20Report%202023-2031_update_11-22.pdf
[2]Housing Element Implementation and APR Data Dashboard; California Department of Housing and Community Development, accessed December 2022.
Paid for by Yes on Measure CC/No on Measure BB
Sponsored by Coalition of Concerned Housing Providers, FPPC #13795546
Major Funding Provided by National Association of Realtors (Chicago, IL $195,000)
California Association of Realtors (Los Angeles, CA $40,000)
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