With Election Day (June 3rd) only a few weeks away, here are some "Questions & Answers" about Propositions 98 & 99. Please remember to vote!
1. What is Proposition 98 and what does it do?
Proposition 98 is a deceptive measure that a small group of wealthy landlords placed on California's June 3, 2008 ballot. Proponents want you to believe the measure is only about ‘eminent domain', but Prop. 98 is full of hidden provisions that would:
• Attack renters.
• Prop. 98 eliminates rent control.
• Prop. 98 also eliminates important renter protections like laws protecting renters against unfair evictions. So, landlords can kick out tenants and vacate the unit, essentially eliminating rent control, allowing them to raise rents.
• Prop. 98 also eliminates other renter protections like laws requiring the fair return of rental deposits.
• Gut important environmental protections like laws we need to combat global warming, and protect our land, air, water and coasts.
• Jeopardize the quality of our drinking water and our ability to secure new sources of water to protect our environment and fuel our economy.
• Result in frivolous lawsuits, higher taxpayer costs, and hurt our economy.
2. Who is behind Proposition 98?
Proposition 98 is the worst kind of special interest proposition there is. Wealthy landlords and mobile home park owners spent millions to get this measure on the ballot. In fact, more than 80% of funding behind Prop. 98 comes from landlords. These landlords don't care about eminent domain... that's just a smokescreen. They want to trick voters into abolishing renter protections and eliminating rent control so they can make millions off the backs of seniors, widows, veterans, young families and other renters.
3. Who is opposed to Prop. 98?
A broad and diverse coalition is opposed to Prop. 98. There are so many problems with Prop. 98 that groups that typically don't agree on anything agree that Prop. 98 must be defeated.
Groups like the AARP, League of Women Voters of California, California Chamber of Commerce, California Professional Firefighters, California Teachers Association, National Wildlife Federation, California Police Chiefs Association, League of California Homeowners, Sierra Club California, Western Growers Association, California Alliance of Retired Americans, Coalition to Protect California Renters, Consumer Federation of California, California League of Conservation Voters and hundreds of other organizations representing seniors, homeowners, environmentalists, agriculture, business, labor, public safety, educators, renters and community groups all agree: NO ON 98!
4. How would the rent control eliminate in Prop 98 work? Is it a phase out?
Prop. 98 is a devastating one‐two punch that would strike a crushing blow to California renters. First, Prop. 98 would eliminate rent control as soon as a renter moves out of their unit. Second, Prop. 98 would eliminate important renter protections, like laws protecting renters against unfair evictions. Thus, Prop. 98 gives landlords the incentive and the means to kick out tenants so they can vacate the unit, effectively eliminating rent control protections so they can raise rents. Millions of California seniors, veterans, young and working families will be harmed if Prop. 98 passes. Prop 98 also prohibits communities from passing rent control ordinances in the future and cancels rent control ordinances that were passed during 2007.
5. What other renter and housing protections would be eliminated if Prop. 98 becomes law?
According to an analysis by the Western Center on Law and Poverty, the following changes are likely to occur if Prop. 98 becomes law:
• Invalidate tenant notice periods, such as 30 day notice before a landlord can increase rents and 60 day notice before evicting a renter.
• Invalidate laws protecting tenants from unfair evictions without "just cause".
• Invalidate inclusionary housing requirements, which require a certain percent of new housing to be dedicated as "affordable".
• Elimination of foreclosure protections for homeowners, including ample notice, a reinstatement period and a redemption period. In light of today's mortgage crisis, eliminating protections for homeowners could impact tens of thousands of homeowners. In fact, 170,000 California properties received Notice of Default - the first step in a foreclosure process - in the first 3 Quarters of 2007.
• Invalidation of some state and local fair housing laws, including laws prohibiting housing discrimination on the bases of sexual orientation.
6. Proponents say that government should provide rental and housing assistance, not landlords. What do you say to that?
In their own ballot arguments, the landlords admit that rent control laws "help the elderly, poor, disabled, veterans, students and others." But they argue, instead, that taxpayers should pay for more subsidized housing and rental assistance. Current law allows landlords providing rent control units a fair return on investment. Many of these landlords are the same who have contributed millions to Pass Prop. 98. Boiled down, the landlords want to pass 98 so they can raise rents as high as they want and make more money. And they want us, taxpayers, to pay for it.
7. How will Prop. 98 impact water projects?
At a time when California faces a water crisis that threatens our environment and our economy, Prop. 98 would block needed public water projects we need to improve drinking water quality, protect the environment and ensure adequate water supplies for our farms, homes and businesses. Either intentionally or through negligence, Prop. 98 would make it illegal to use eminent domain to acquire land and water to develop public water projects.
Prop. 98 prohibits the "transfer of ownership, occupancy or use of private property or associated property rights to a public agency for the consumption of natural resources". And it locks that provision into our constitution.
Since virtually all public water projects requiring property acquisition or acquisition of water rights involve "the consumption of natural resources" experts warn Prop. 98, would block a great number of future water projects.
The Association of California Water Agencies opposes Prop. 98 and calls this provision "cause for alarm", and the Western Growers Association opposes Prop. 98 and says this provision poses "an unacceptable risk". The California Chamber of Commerce also opposes Prop. 98 based on its negative impacts on future water development in this state.
8. How will Prop. 98 impact environmental laws and regulations and land‐use decisions?
Every leading environmental organization in California opposes Prop. 98 because it would be a disaster for our environment. Specifically, the measure prohibits laws and regulations that "transfer an economic benefit to one or more private persons at the expense of the private owner." The courts have ruled that virtually all environmental regulations and land‐use decisions are likely to impose costs on the affected party, while transferring economic benefits to another private party. Thus, the measure will gut all manner of laws and regulations that protect our environment and regulate growth and development, including:
• AB 32 Regulations to reduce greenhouse gas emissions
• Water supply and water quality protections
• Protections of endangered species and their habitats;
• Urban limit lines and other growth control measures
• California Environmental Quality Act mitigations;
• Protection of coastal areas, wetlands, farmland, old growth forests, and cultural and historic sites;
• Ordinary zoning
9. Does 98 have far‐reaching "regulatory takings" provisions like Prop 90, the measure that California voters rejected in 2006?
Yes. The section in Prop 98 prohibiting regulations that "transfer an economic benefit to one or more private persons at the expense of the private owner" may even go further than Prop90 in eliminating protections for the environment and communities statewide. Proponents have tried to deny that the measure would create environmental loopholes for property owners. But just look at the groups opposed to Prop. 98. Every leading environmental organization, including the California League of Conservation Voters, Planning and Conservation League, Sierra Club California, Natural Resources Defense Council, National Wildlife Federation, Environmental Defense, and many more oppose 98. These are groups that care deeply about the "regulatory takings" provision in Prop. 98 because it would effectively prohibit the laws and regulations that protect our environment.
10. Why do leading business groups oppose Prop. 98?
Business groups like the California Chamber of Commerce, the California Black Chamber of Commerce, Silicon Valley Leadership Group, and other local business associations all oppose Prop. 98 because it will be harmful to California's economy. One of the largest challenges facing our economic growth in California is our water crisis. Prop. 98 would prohibit new water projects - including storage - that we need to fuel our economy. No water = no growth.
11. How would Prop 98 lead to more frivolous lawsuits?
Additionally, Prop. 98 could create a new legal hook that would stimulate NIMBY lawsuits. Specifically, Prop. 98 explicitly prohibits regulations that "transfer an economic benefit to one or more private persons at the expense of the private owner." This provision could have far‐reaching implications. That's because the courts have ruled that virtually all land‐use decisions transfer economic benefit from one party to another.
For instance, landowners neighboring a proposed commercial development could sue, claiming the project would "transfer economic benefits" at their expense. It's easy to see how this measure is a slippery slope, and an invitation to frivolous lawsuits and major taxpayer costs.
12. What is Prop. 99?
Prop. 99 is the straightforward solution we need to PROTECT AGAINST EMINENT DOMAIN ABUSES. Prop. 99 prohibits government from using eminent domain to take a home to transfer to a private developer. Prop. 99 places this vital protection into our state constitution to ensure that the government cannot remove it without a vote of the people. Unlike other deceptive proposals, Prop. 99 has NO HIDDEN AGENDAS. Read it for yourself. What you see is what you get.
Prop. 99 is straightforward eminent domain reform that protects homeowners now.
13. Who is behind Prop. 99?
Prop. 99 is supported by a broad and diverse coalition that includes the League of California Homeowners, dozens of local homeowners associations, the League of Women Voters of California, California Alliance of Retired Americans, California Police Chiefs Association, National Coalition of Hispanic Organizations and hundreds of others.
14. What happens if both Prop. 98 and Prop. 99 pass?
Proposition 99 has an important provision that says that if both Proposition 98 and 99 pass, the one that receives the most votes becomes law and the other measure does not.
15. Why is this provision in Proposition 99?
Prop. 99 is real eminent domain reform, with no hidden agendas or adverse consequences. On the other hand, Prop. 98 is loaded with damaging provisions that will pose great harm to California and its residents. We thought it responsible to ensure that Prop. 98 does not become law if Prop. 99 receives more votes. We cannot let that damaging initiative, which attacks renters, will decimate the environment, and disrupt our water quality and supply, become law.
