L.A. Does Not Want to Be New York

Two years ago, a billboard went up in Hollywood with a clear message: “Stop Mannhattanwood.” It was the start of the community pushback against rising rental prices and luxury housing development, and it was followed by two development measures to appear on the ballot in the following years: Measure JJJ in November 2016 and the failed Measure S in March 2017. The billboard’s message was a cornerstone of the group’s argument; they did not want Los Angeles to become New York, a city known for its severe housing supply shortage and exorbitant prices. This year, Los Angeles will see more pushback against the housing crisis on the ballot. This time with the Affordable Housing Bond Act, which will repeal Costa Hawkins and allow cities to implement rent control on all property types. Last week, the Apartment Association of Los Angeles officially opposed the measure, saying that it will exacerbate the affordability issue in Los Angeles by halting development and decreasing property values. We sat down with Daniel M. Yukelson, executive director of the Apartment Association of Greater L.A., to talk about the impacts of Costa Hawkins in the long- and short-term, and he took an interesting and familiar long-term position: if Costa Hawkins is repealed, Los Angeles will turn into Manhattan. Here, Yukelson tells us what he predicts will follow a Costa Hawkins repeal.

GlobeSt.com: If Costa Hawkins is repealed, how quickly will it begin to impact the housing market?

Daniel M. Yukelson: The effects of Costa-Hawkins repeal will immediately become evident.  Many local jurisdictions will place more and more currently exempt properties under rent control, will instill vacancy controls, and will in some instances, rollback rents to levels not seen in decades.