A newly elected member of the San Francisco Board of Supervisors has proposed an expansion of rent control that would circumvent state laws that limit such measures.
Randy Shaw comments on a controversial proposal in San Francisco to expand rent control—despite a prohibition on rent control for buildings built after 1979 and for buildings under development that are built by-right. According to Shaw, "[Supervisor Aaron] Peskin correctly believes that San Francisco can require rent control and potentially even vacancy control as a condition of approving housing developments that have received special city benefits."
The article explains how the proposal would attempt to skirt state law and makes an argument for the benefits of expanded rent control. To get around the state law, the proposal would only impose rent control on buildings "that are asking the city for a significant upzoning."
"In exchange for receiving that type of major economic benefit," according to Shaw's explanation, "developers would have to agree to rent control." The article also includes more on the limitations of the proposal as well as the political path that would have to clear the way for approval.
Needless to say, the proposal is controversial. The San Francisco Chronicle editorial board produced an editorial calling the proposal a "bad idea" when it first became public news in December. Planetizen blogger Michael Lewyn has written in the past about the nearly universal opposition to rent control by economists, and as far back as 2012, multiple journalists were covering the unintended consequences of rent control in San Francisco.
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