CRC co-sponsored AB 1199 imposes excise tax and accountability on large corporate landlords to increase opportunity for working class

 

SACRAMENTO, Calif — Assemblymember Mike A. Gipson (D-Carson) introduces Assembly Bill (AB) 1199, which seeks to create opportunities for first-time homebuyers and working families to own homes and build generational wealth. Specifically, this bill corrects the excessive practice of corporations buying up foreclosed or under-market value homes in order to make profits from increasingly inflated rents by creating a disincentive for hoarding homes as rental property.

For years, most single-family homes in California were rented directly by their owners or small real-estate companies. Today, a large and growing share of single-family rental homes are owned and managed by large corporations, real-estate firms, and financial institutions. Across the U.S., 12 million single-family homes and 35 percent of all rental housing are owned by these institutions.

“As we continue to fight through this pandemic, there is no greater responsibility than to advance opportunities for our working-class and to hold investors accountable,” said Assemblymember Gipson. “The underproduction of units has turned the state’s housing market into a lucrative business and are robbing Californians’ shot at living the American Dream.”

“This bill hits home for me,” said Lenea Maibaum, an organizer at Housing Rights Committee of San Francisco and a tenant under one of California’s largest multifamily landlords, Veritas Investments. “As huge, corporate landlords get richer during the pandemic, they should also be paying their fair share. And when tenants need to hold a huge corporation accountable, this bill
will help them do that.” Of California’s 10 million residential properties, over half a million are owned by corporations, and the most conservative estimate puts nearly 200,000 properties are owned by corporations that own more than 10 residential properties. This has allowed corporate landlords to corner the housing market, thereby limiting the ability of many long-term renters seeking to build equity through homeownership.

“Low income and Black, Indigenous, and other people of color have been priced out of and excluded from the housing market for too long,” said Jyotswaroop Kaur Bawa, Organizing and Campaigns Director for the California Reinvestment Coalition. “The extractive profit-taking approach we’ve prioritized in California has made it impossible for these communities to stay in
their homes, especially in the face of mass evictions and an ongoing pandemic. We need to create statewide rules that center people-driven investment, not the needs of large corporations.”

“As an organization of low-income Californians, our members see the negative impacts of bad corporate landlords every day, with the eviction of renters and crowding out of first-time homebuyers,” said Sasha Graham, President of the ACCE Action Board of Directors. “We’re increasingly facing Wall Street Landlords, not mom-and-pops, who are pushing out our community and driving up the cost of housing for all of us. We deserve to know who owns our homes & we need accountability for our most impacted communities.”

In addition, this bill seeks to correct the practice of corporations buying multiple homes by imposing an excise tax on large corporations that own and rent out 10 or more properties in California to disincentivize hoarding single-family homes and amassing huge portfolios of rental properties. Tax revenue from this bill could generate over $1 billion annually. In addition to curtailing the growing practice, the bill creates a fund to support first-time homebuyer education, down payment assistance programs and rental assistance for low-income families.

100 organizations in support of AB 1199:

1. Affordable Housing Alliance
2. Affordable Housing Network of Santa Clara County
3. AIDS Legal Referral Panel
4. Alliance for Community Transit – Los Angeles
5. Alliance of Californians for Community Empowerment (ACCE)—SPONSOR
6. American Indian Movement So Cal
7. Anti-Eviction Mapping Project
8. Asian Americans Advancing Justice – California
9. Bend the Arc
10. Berkeley Tenants Union
11. Beverly-Vermont Community Land Trust
12. Burbank Tenants’ Rights Committee
13. CADEM Renters’ Caucus
14. California Capital Financial Development Corporation
15. California Coalition for Rural Housing
16. California Community Land Trust Network
17. California Democratic Council
18. California Reinvestment Coalition—SPONSOR
19. Causa Justa :: Just Cause
20. CDC Small Business Finance
21. Center for LGBTQ Economic Advancement & Research
22. Château Shatto
23. City Heights Community Development Corporation
24. Clergy and Laity United for Economic Justice (CLUE)
25. Coachella Valley Housing Corporation
26. Coalition for Economic Survival (CES)
27. Coalition for Humane Immigrant Rights (CHIRLA)
28. Community Financial Resources
29. Courage California
30. Crenshaw Subway Coalition
31. East Los Angeles Community Corporation
32. East Yard Communities for Environmental Justice
33. EPACANDO
34. Esperanza Community Housing Corporation
35. Eviction Defense Collaborative
36. Eviction Defense Network
37. Fair Housing Advocates of Northern California
38. Fair Housing Council of the San Fernando Valley
39. First Unitarian Church of Los Angeles
40. The Greenlining Institute
41. Haven Neighborhood Services
42. Homeownership SF
43. Housing and Economic Rights Advocates
44. Housing Equality & Advocacy Resource Team (HEART LA)
45. Housing Long Beach
46. Housing Rights Center
47. Housing Rights Committee San Francisco—SPONSOR
48. HPP Cares Community Development Corporation
49. Inquilinos Unidos
50. Inclusive Action for the City
51. Inner City Law Center
52. KIWA (Koreatown Immigrant Workers Alliance)
53. Koreatown Youth & Community Center
54. LA Forward
55. Law Foundation of Silicon Valley
56. Maternal and Child Health Access
57. Me Too Survivors’ March International
58. Mission Economic Development Agency (MEDA)
59. Multicultural Real Estate Alliance for Urban Change
60. Mutual Housing California
61. National CAPACD- National Coalition for Asian Pacific American Community Development
62. National Council of Jewish Women Los Angeles
63. National Harm Reduction Coalition
64. National Housing Law Project
65. National Union of Healthcare Workers
66. Neighborhood Housing Services Los Angeles—SPONSOR
67. New Economics for Women
68. North Bay Tenants Project/ Sonoma County Tenants Union
69. Northern California Land Trust
70. Neighborhood Partnership Housing Services, Inc.
71. Oakland Community Land Trust
72. One Redwood City
73. Pasadena Tenants Union
74. Peace and Freedom Party
75. Public Counsel
76. The Public Interest Law Project
77. PUENTE Learning Center
78. R&N Strategies
79. Reinvent South Stockton Coalition
80. Renaissance Entrepreneurship Center
81. Sacred Heart Community Service of San Jose
82. Sacramento Housing Alliance
83. Sacramento Tenants Union
84. SAJE (Strategic Actions for a Just Economy)
85. San Francisco Anti-Displacement Coalition
86. Seminary of the Street
87. Senior and Disability Action
88. Social Justice Learning Institute
89. Stonewall Democratic Club
90. Tenants Together
91. Tenderloin Housing Clinic
92. Tenderloin Neighborhood Development Corporation (TNDC)
93. The People’s Resource Center
94. The Sidewalk Project
95. TRUST South LA
96. Unite A Nation
97. Urban Habitat
98. Ventura County Community Development Corporation
99. Volunteers of America
100. Working Partnerships USA