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Jun 24, 2009 -- San Francisco sets income-based rent caps

A new development out of the "People's Republic of California" has Clark all bent out of shape.

The Los Angeles Times reports that San Francisco has passed a law that prevents landlords from raising rent above 33% of a tenant's income.

Landlords, of course, are up in arms and may have to "stall building repairs and cut amenities for renters" in the words of the article.

It's a replay of the classic rent control scenario that you see in places like New York City. Everyone complains that their landlord won't fix anything or make any improvements to the facilities. But they never realize it's because rent control interferes with the free market and takes away any incentive for progress.

The consumer champ would rather let the free market set rents.

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What others are saying

  • San Fransisco rent caps
    Well, first the speculators come and buy up as much property as there is, this drives rents up to the point that the people who need to rent, can't afford to, thus driving out the Lower/middle class who serve them, if they even live there, Welcome to gentrification! Greed is the problem and it's pandemic. In this case causing artificially high property values. And now the gov't knee jerks by doing this. California is a mess!
  • credit card agreements
    credit card companies don't change the terms of the contract. the terms of the contract in every credit card agreement i have ever seen allows the card company to change the various fees and interest rates at their whim, without any reason whatsoever.

    While i have zero sympathy for credit card companies, just whose responsibility is it anyway to pay their bills? If you don't want to be subject to all the fees and interest rate changes, the answer is simple...just pay the bill on time and in full each month and they can get nothing more. But obviously for all the whiners out there, that is not what they want to hear because that would take will power and financial disipline. And that is in short supply nowadays.
  • California has no one left to pay the rent anyway...
    I often wondered what happened to all those leftover Marxists in the USA who all went silent after the butchery of Tienanmen Square and the collapse of the Soviet Union. Now I see what happened - they all moved to California. No wonder that state is going belly up and bleeding taxpayers. At the rate they're going soon there will only be public employees and illegal aliens left.
  • Stolen Property
    I agree with the general that there is a serious distribution problem in our economy. For the past eight years the rich have used money and power to have legislators create a system that allowed them to steal from us. Changing the terms of a credit card contract retroactively and selling a mortgage to people who obviously will not be able to repay it only to repossess and rent the house back to them are just a few of the many examples. Stealing that is sanctioned by government or ignored by regulators is still stealing. This law is merely an attempt to reclaim what was stolen. I hope we see more like it.
  • Landlords' property confiscated
    This simply amounts to indirect confiscation of the landlords' property by the municipality. Maybe if the powers that be in SanFran would instead concentrate on creating a favorable climate for business and prosperity, instead of forcing everyone who has anything to give it to those who have less, the renters could actually get good jobs and pay market-based rents. So this will further encourage the mass exodus of the prosperous from California - a big reason why the People's Republic has seen "unexpected revenue shortfalls". Meanwhile Texas, which has no income tax as no socialist/fascist lunacy, created more new jobs in the last quarter than the other 49 states combined, and is enjoying a period of relative prosperity in a time of economic depression. But the income-redistribution crowd running Kaliforn-ee-ya is expecting mommy Nancy and daddy Barack to come running to their rescue with an open (US taxpayers') wallet, rather than face the all-too-predictable results of their anti-capitalist policy choices. If that comes to pass, contact your Governor and demand that your state stop sending tax revenues to Washington immediately!
  • SF Housing
    I have to say I think it's a great thing! The rents were getting out of control, so much so that you had to rent all the rooms in your apt. *even the living room.. just to be able to live in the city you love. There has to be a line and I'm glad one was drawn. People are not making good money like they used too in early 2000. People may not agree with me but frankly I lived there I know and I had to leave the city i love because i could not afford the rents. 2br going for $3500.00 thats out of control and I'm glad control has been put in place.
  • Meow! Clark.
    What ever happened to section 8 housing? Now we also have section 42, and 48 government housing, similiar to section 8 housing, and age 62 and over housing.

    Government housing was suppose to be the "rent cap" for afordable housing in neighborhoods.

    I would rather see some REAL LAWS changed or applied to the current rental problems in this country. Laws that would easily block and prosacute landlords that engage in:

    Retailory evictions
    Black Listing
    Posting Slandereous, Libelous and defaming lies about tenants on the internet/web.
    Collecting for "credit checks" that never happen but the potential tenant paid for it.
  • confiscation
    It all comes down to the government confiscating the property one person has earned and giving it to another person who has not earned it. It's immoral and just plain wrong. Certainly not the Christian thing to do.
  • housing problem?
    maybe "general public" needs to just do the right thing and turn his house over to these poor down-trodden homeless people instead of insisting that everyone else who owns property do it, but not him. My brother the proud liberal feels the same way about tax rates...increase everyone elses taxes who make some undefined higher income because after all they can afford it and how can they possibly really need all that money.
  • Housing Problem
    Dear General Public: Buzz G is right.
  • Housing Problem
    Dear General Public,

    Those people who live in cardboard boxes are totally incapable of maintaining a house anywhere. Some are mentally challenged, some are severe alchoholics and some just plain like living that way. You could give them a house of their own, but it would soon be a wreck. And I certainly would not want to live next to one. You can be as Christian as you want, but reality is what it is.
  • Housing Problem
    We have thousands of vacant houses surrounding the city and families living in cardboard boxes and tents downtown. There is something wrong with a people who call themselves "Christians" and who support this.
  • Rent Control
    My friends father died and left him a rent control appartment building, his propery taxes went up, Insurance went up, Maintance went up, Fuel cost went up but could not raise any rent, so he gave the building to NYC and wished them luck, have at it boys, and walked away. We are talking rents as low as $200.00 a month, were that same apartment would rent for $1500.00 a month
  • Typical SF nonsense...
    California is bad enough, but SF is loaded with idiot leftist-politicians with stupid, jaw-dropping ideas like this.

    Something tells me that a LOT of rental investors will get getting out of the rental business altogether after this little stunt. Renters can expect entire buildings/complexes to be sold for redevopment soon, and *good luck* finding another place to rent! Shortages in rental housing will be staggering, and employers will be left in the lurch after the hired help permanantly relocates. Way to go, SF!

    Okay, who in the room can tell me how this helps our economy, society or renters San Francisco?

    And to those who voted these clowns into office...ENJOY!!!!!!!!!!!!! To these, your just desserts.
  • We need to kick California and New York out of the United States of America and let them form their own communist country independant of ours.
  • what should we expect
    just what would one expect from this liberal establishment. sanfrancisco stands virtually alone, with maybe seattle a close second when it comes to political grandstanding. But I do have to say, better sanfrancisco then anywhere else. It's citizens got exactly what they deserve for electing this nitwit gang into office.
  • People's Republic of California?
    How ironic that the People's Republic of China is more capitalistic than California.
  • Price
    When the price of anything is set by politicians rather than by supply/demand equilibrium resulting from the free market, shortages are guaranteed. That fact has been known for hundreds of years. But facts don't get politicians elected. Emotions do.
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