Minutes from October 16, 2018 Open Board Meeting-Tim Johnson-Housing & Prop10

Tuesday, October 16, 2018

Open Board of Directors Meeting

Norton Event Center
1601 E. Third St., Suite 138
San Bernardino, CA 92408


Present:   Carole Beswick, Ann Bryan, Mike Burrows, Ken Coate, Sandra Cuellar, Adam Eventov, Louis Goodwin, Otis Greer, Fran Inman, Mark Kaenel, Lowell King, Bill Lemann, John Mirau, P.T. McEwen, John Mirau, Dan Murphy, Roman Nava, Michael Rivera, Kristine Scott, David VanVoorhis, Steve von Rajcs, and Frank Zabaleta.

Guests: Tom Brickley, Steven Graham, Catherine Pritchett and Arnold San Miguel. 

Announcements: 1) The Inland Action Holiday Party will be held on Thursday, December 6, 2018 at the home of Ann and Vaughn Bryan.   More information will be sent out soon.

M/S/P: Minutes from October 9, 2018

Lowell King introduced Tim Johnson, Sr. Vice President of Strategic Development, Quality Management Group and Chair of the San Bernardino County Housing Authority.

California has been experiencing an extended and increasing housing shortage which began in the 1970’S.  The current estimate is that there is a shortage of over 1M housing units in Southern California of which some 200,000 are needed in the Inland Empire.

The cause is the imbalance between supply and demand, a result of strong economic growth creating thousands of new jobs (which increases demand for housing) and the insufficient construction of new housing units to provide enough supply to meet the demand.  This shortage has driven home prices and rents to extremely high levels.  A good deal of responsibility falls to local governments and poor or insufficient planning.  There are many communities that have enacted strict “no growth” policies and others with “not in my back yard” protests.

The Inland Empire is still growing, and to encourage business growth, we must have appropriate housing.  All types of housing are needed, from apartments and condos to single family homes.

Tim Johnson indicated that his discussion of Prop 10 is from his personal and professional housing experience and he is not speaking on behalf of the San Bernardino County Housing Authority.

Proposition 10 on the November ballot would repeal the 1995 Costa Hawkins Rental Housing Act, which sets limits on the kind of rent control policies cities are able to impose. Currently, 15 California cities have rent control policies.  Prop 10 allows all local governments the option to regulate rental prices as they see fit.  Cities that choose to implement rent control would need to establish their own rent control boards.  However, opening the door to stronger rent controls will likely slow new housing construction by limiting their profitability.  Additionally, it discourages landlords from renting, making available rental housing even scarcer and more expensive. Prop 10 eliminates protections for homeowners, could impose price controls on those who want to rent their home, and potentially reduce home values.

Decreasing rents requires more housing, not rent control.  Prop 10 is a feel-good idea but does not increase the supply of affordable units. California’s housing and affordability are broad issues that need statewide attention.

A Q & A period followed.

Meeting adjourned 8:23 a.m.