Real Estate Industry Shells Out $102.5 Million to Kill Rent Control in California

Scandal-plagued contributors from the real estate industry have contributed a shocking $102.5 million so far to kill Proposition 33 and pass Proposition 34 in California. The controversial donors include Essex Property Trust and Equity Residential, two of the largest corporate landlords in the country that are both mired in the ongoing RealPage scandal, and the California Association of Realtors, which is the focus of a formal inquiry by the Department of Justice for possible anti-consumer violations. In addition, the National Association of Realtors, which has recently faced major scandals ranging from sexual harassment to illegally inflated real estate commissions, also has contributed to a No on Prop 33 committee.

Proposition 33, sponsored by AIDS Healthcare Foundation (AHF) and now endorsed by more than 100 elected and formerly elected officials in California as well as more than 70 labor, senior, veteran, healthcare, and tenant groups, is just 23 words: “The state may not limit the right of any city, county, or city and county to maintain, enact or expand residential rent control.” Prop 33 also has the support of the California Democratic party, labor icon Dolores Huerta, and U.S. Senator Bernie Sanders.

Corporate landlords want to stop Prop 33 so they can continue to charge sky-high rents, year after year, and rake in billions in revenue off hard-working California tenants.

Proposition 34, financed by the many of the largest corporate landlords in the nation, seeks to silence AHF’s housing advocacy work on rent control and other tenant protections. The San Francisco Chronicle called Prop 34 “cheap political gamesmanship that doesn’t belong on the ballot.” The San Diego Tribune called it a “vengeful attempt funded by landlords” that “sets a terrible precedent.” The Bakersfield Californian says Prop 34 is about “political rivalry.” The Mercury News calls it “Revenge of the Landlords.” And the LA Times describes Prop 34 as a “…murky, self-serving ballot measure,” adding, “ [T]he misuse of the ballot … recently reached a … new low.”

In the end, the massive contributions show that Essex Property Trust and Equity Residential, two of the largest corporate landlords in the U.S., are leading the charge to kill rent control expansion in California.