Ad Watch: Prop. 98 foes spotlight effect on rent control

The Yes on 99 campaign, backers of an eminent domain initiative on the June 3 ballot, launched a 60-second radio ad this week criticizing a competing initiative, Proposition 98. Following is the text of the ad and an analysis by John Hill of the Bee Capitol Bureau:

•MAN: So who's behind those ads using kids to promote Proposition 98?

WOMAN: Those ads are actually paid for by wealthy landlords, who wrote Prop. 98 and want voters to think it's all about eminent domain.

MAN: What would 98 really do?

WOMAN: It would eliminate rent control and let landlords raise rents without limits.

MAN: That doesn't protect families or homes.

WOMAN: Right. In fact, 98 would make it easier to evict people from mobile homes or apartments so landlords can build big new developments and charge higher rents.

MAN: That could hurt a lot of people.

WOMAN: 98 would especially hurt seniors on fixed incomes. That's why 98 is opposed by AARP, the nation's leading senior organization.

MAN: I see the official ballot language says 98 would increase taxpayer costs.

WOMAN: That's right. 98 is bad for renters, homeowners and taxpayers. Stop the landlord scheme. Vote no on 98.

•ANALYSIS: The ad is a response to those run by Proposition 98's backers, which make the case that current eminent domain law is unfair and runs roughshod over property rights. This ad argues that Proposition 98's real intent is to put an end to rent control in apartments and mobile home parks.

In fact, the initiative would address both eminent domain and rent control, so it is a matter of opinion which is the real intent.

It is true that much of the funding for Proposition 98 comes from landlords and mobile home park interests. The suggestion, however, that landlords would raise rents "without limits" ignores the fact that rents are generally set by what the market will bear. Many economists, even some liberal ones, agree that rent control doesn't work and has driven down the quantity and quality of housing.

As reflected in the ad, opponents of Proposition 98 say it would eliminate many renter protections – making it easier, for instance, to evict tenants.

The nonpartisan Legislative Analyst's Office says the initiative might affect local laws that require owners who want to convert apartments to condominiums to pay the tenants to ease the transition. Aside from this, the analyst's office does not see a broad effect on renter rights – although it would be up to a judge to make that determination.

Finally, although the Legislative Analyst's Office sees the possibility of some increased government costs, it says "the net statewide fiscal effect would not be significant."

About the writer:

• Call John Hill, Bee Capitol Bureau, (916) 326-5543.