A publication of the Apartment Association of Greater Los Angeles • October 2018 • $7.50 Section 8 Myths vs. Facts Page 24 Proposition 10, Rent Control & the Affordable Housing Lie Page 46 The New Tax Law Page 60 Page 70 FACT SHEET Coalition Members: California Community Builders California Business Properties Association California Business Roundtable California Rental Housing Association California Senior Advocates League California State Conference of the National Association for the Advancement of Colored People (NAACP) Family Business Association of California California Small Business Association California Chamber of Commerce California Taxpayers Association California Taxpayer Protection Committee California Taxpayers Union Californians Against Wasteful Spending Howard Jarvis Taxpayers Association Institute of Real Estate Management – California Pro-Small Biz California The Two Hundred United Latinos Vote Central Valley Business Federation (BizFed) Fresno Chamber of Commerce Greater Irvine Chamber of Commerce Kern County Taxpayers Association Los Angeles Area Chamber of Commerce Los Angeles Business Federation (BizFed) Mountain View Chamber of Commerce Orange County Business Council Palo Alto Chamber of Commerce Sacramento Metropolitan Chamber of Commerce Sacramento Taxpayers Association San Bernardino Area Chamber of Commerce San Diego Regional Chamber of Commerce Silicon Valley Taxpayers Association Southwest California Legislative Council The Silicon Valley Organization Valley Industry and Commerce Association *Partial List Prop 10, the so-called “Affordable Housing Act,” is anything but affordable housing. Don’t be fooled, the initiative is bad for homeowners and renters – and will make California’s housing crisis worse. NO on Prop 10. It just has too many flaws. Allows Regulation of Single Family Homes • Allows government to dictate pricing for privately owned single-family homes, controlling how much homeowners can charge to rent out their home – or even just a room. It may even lead to bureaucrats charging homeowners a fee for taking their home off the rental market. Places Bureaucrats in Charge of Housing with the Power to Add Additional Fees • Puts as many as 539 rental boards in charge of housing and gives government agencies unlimited power to add fees on housing that will be passed on to tenants in the form of higher rents – making homes and apartments even more expensive. Puts Taxpayers at Risk for Millions in Legal Costs • Requires California taxpayers to pay the proponents of the initiative’s legal bills if homeowners, tenants or voters challenge the law in court. Even if the proponents lose in court, taxpayers will still be on the hook to pay their legal bills. Adds Tens of Millions in New Costs to Local Governments • The state’s non-partisan legislative analyst says the measure could increase costs for local governments by tens of millions of dollars per year and cost the state millions more in lost revenue, which could mean diverting funds from other vital state services. Drives Up the Cost of Existing Housing • New government fees and regulations will give homeowners a huge financial incentive to convert rental properties into more profitable uses like short-term vacation rentals – increasing the cost of existing housing and making it even harder for renters to find an affordable place to live. Paid for by No on Prop 10 – A Flawed Initiative That Will Make The Housing Crisis Worse a coalition of housing advocates, renters, large and small businesses, taxpayer groups, and veterans Committee major funding from Michael K. Hayde, including Western National Group & Affiliated Entities Blackstone Property Partners, L.P.; BREIT MF Holdings LLC; Blackstone Real Estate Partners (VI through VIII) L.P.; and their Holdings Geoffrey H. Palmer funding details at www.fppc.ca.gov For more information, visit: www.Prop10Flaws.com Info@Prop10Flaws.com Prop 10 has too many flaws and will make the housing crisis worse. Vote NO on November 6th!