Hi everyone. There is a major update to these housing bills. Please vote this thread up so it gains more visibility. We need everyone to oppose these bills so that it doesn't hurt tenants and landlord; and cause long term damage to the state's economy and.
There are 2 bills up for testimony tomorrow. HB 6588 and HB 6589.
Both bills are very similar, 4% + Inflation yearly maximum, they also deny rent increases during a "state wide public health emergency" and extends the rent freeze 1 year after! The state doesn't do this for any other product or service. heating oil, gas, electricity, eggs? They all let you pay for the high inflation of those products and services.
You can Write " I OPPOSE HB 6588 and HB 6589" on your testimony and just file one time. Make sure to check( highlight) both bills off, in the bill numbers box when submitting your testimony.
https://www.cga.ct.gov/aspx/CG...
Here are some great talking points thanks to David Haberfled for creating these
I OPPOSE Rent Caps (aka rent control)HB 6588 and HB 6589 for many reasons “Next to bombing, rent control seems in many cases to be the most efficient technique so far known for destroying cities."- economist Assar Lindbeck iRent controls have a long history of failure around the country. Many are rescinded because they don’t work as intended and the misallocation of resources becomes apparent to the residents. While initially helping the few people who obtain a stabilized /controlled unit the mass majority of renters end up losing in the long run as properties become unprofitable and maintenance ceases, eventually units become uninhabitable or are removed from the market for other purposes. Without the ability to increase rents to keep up with rising costs landlords have little incentive to improve the property, and builders are discouraged from creating new housing stock.
1) Caps on increases effectively mandate property owners to lose money at some point. What good will it do when there are no funds to maintain the property or incentives to do any upgrades when you can’t recoup the costs with higher rent? Quality of living will deteriorate quickly as buildings fall into disrepair. There are over 40,000 mothballed units presently in NY City because its not economically feasible to remodel the units and return them to the rental market.*[1] https://therealdeal.com/issues_articles/that-empty-feeling/
2) With the profit incentive removed many landlords will remove units for other profitable purposes, like converting to condos or redevelopment, thus removing housing stock from the market and exasperating the shortage of rental housing.
3) Last year the State greatly expanded the Fair Rent commission statute ( C.G.S. §§ 7- 148b through 7-148f, 47a-20 and 47a-23c),requiring many towns to have a Fair Rent Commission . This was specifically set up to control unjust rent increases. Why won’t we give the commissions a chance to work? Why would the state need both rent caps and the commissions?
4) The Connecticut State Constitution is clear: SEC. 11 Specifically states “The property of no person shall be taken for public use without just compensation” . This provision protects everyone from government confiscation of property without just payment. When rent caps or rent controls are enacted the government deprives the property owner of cash flow to operate the building and a reasonable return for the efforts thus lowering the value of the property in the process. This is clearly a form of government “taking”. The Connecticut Supreme Court shot down the power of municipalities to enact rent controls but allowed for municipalities to establish fair rent commissions to ”control and eliminate excessive rental charges” (CGS §§ 7-148b to -148g) and empowers these commissions to enforce provisions of a landlord-tenant statute generally prohibiting landlords from increasing rent as a retaliatory action against tenants (CGS §§ 47a-20 and 47a-20a). (See #3 above), And any tenant residing in a building or complex consisting of five or more separate dwelling units who is (1) age 62 or older or (2) an individual with a physical or mental disability may bring action in Superior Court to contest an excessive rent increase or proposed rent increase (CGS § 47a-23c(c)).
5) Rent Control Makes It Harder to Find an Apartment Property owners will convert rental apartments into condominiums and replace structures with other types of buildings, resulting in a decline in housing supply and making rent increases likelier over the long run. The incentive to build housing of any kind is greatly curtailed, again lowering the supply of new apartments. Landlords will also raise their standards for renting as one bad tenant can have a detrimental effect on the bottom line, marginal tenants will suffer the most. Rent Control Does Not Make Housing More Affordable | Manhattan Institute (manhattan-institute.org)
6) Rent Caps Will Reduce City Tax Revenues
Rent controls clearly suppress property values and municipalities can expect lower revenues, hindering their ability to provide essential services.
7) If Rent Caps/controls don’t affect the number of new apartments created then why does the bill exempt them for the first 15 years? Older buildings are in as much need of cash flow to rehab and upgrade the units, which will be greatly curtailed with the caps.
8) Rent increases are already limited: I can only get what my tenants can afford. In Hartford where I manage property, in the last two years my expenses went up by $ 120 a month per a unit but I could only raise the rent $80 because I know that’s the most many already struggling tenants can afford.
9) These bills freeze rents during a “ State wide public health emergency” and 1 year after. Will any other businesses be subject to such control? Will our taxes, utilities, insurance costs, labor costs be Frozen as well? I doubt it. IF the state wants to help struggling renters, then the cost burden should be upon the treasury of CT and not the individual property owners. In other words, if it’s a public benefit then the public should pay for it. How the State can ACTUALLY help renters.·
Build MORE housing, of all types The state must encourage building by drastically removing zoning restrictions, environmental hurdles and other barriers.·
Create, creative financing solutions for building of affordable rentals and let each town come up with their own ways to encourage building of multi -families.·
Raise Wages so renters can afford to pay for Housing·
Cap assessments for multifamily housing at a low level to help keep taxes predictable and reasonable (Hartford chose to increase taxes 40-60% last year, resulting in large rent increases)·
Cap electric rate increases (50% last year), Insurance rate increases (15% last year) Natural gas (40% increase this year),
Cap interest rates on variable rate financing (most commercial loans have 5 year terms adjustments. 85% increase in two years)· Increase direct payments to qualified renters, to offset rising rents.
Expand the renters’ rebate or UniteCT programs from the state.
