Unregistered units could generate much needed revenue
Bootlegged, rent-control housing units in Santa Monica could help plug the gaping, $12 million hole in the city’s budget.
Landlords who own the roughly 1,000 unregistered units are ducking nearly $8 million in permit revenues and various fees, according to city documents.
The City Council tonight is scheduled to consider amending the city’s Municipal Code to allow some types of bootlegged units to be recognized by the city.
While some of the units pose safety concerns, most lack registration because they don’t meet parking, density and set-back requirements, officials said. Waiving those restrictions would make the units eligible for inspection and therefore subject to standard fees and permitting requirements, said Tim McCormick, the city’s building officer.
“If the unit is made legal it certainly raises the value of the property,” he said. “And it’s appropriate that the landlord pay their fair share” for the city’s services.
“If the unit is made legal it certainly raises the value of the property. And it’s appropriate that the landlord pay their fair share.” — — TIM MCCORMICK Building officer
If the code were changed, building officials would send a notice to landlords to register their units with the city.
Landlords would then have to go through the usual registration process before their properties would be considered legal, McCormick said.
The total average cost for bringing an 800-square foot, one-bedroom apartment up to code is $7,840.
City Attorney Marsha Moutrie said it makes sense to give the units waivers because they have been on the market at least since rent control passed in 1979 and therefore the neighborhoods have largely adjusted to the impacts.
“These aren’t new units,” she said. The 1,000 bootlegged units were discovered by comparing records from the L.A. County Assessor with documents from the Santa Monica Rent Control Board, officials said.
Moutrie said the suggested amendment would allow safety officials to keep track of the buildings. She described the current situation as a standoff between rent control requirements and building and safety concerns.
Even units not registered with the county are protected by rent-control law, she said.
Beyond the legal aspects, officials said there is a safety issue that would be addressed by amending the law.
If the units are monitored by building officials, they would keep a record of potential violations relating to heat and hot water, bad wiring, gas and waste connections, entrances, exits and other safety issues.
“We don’t want to wait until a disaster happens,” McCormick said. “We want to go in and make sure they’re safe.”
Judy Rambeau, assistant city manager, said that relaxing restrictions on the bootlegged units would also help to ensure they aren’t shut down.
“We’re trying to maintain as much rent-controlled affordable housing in the city as we can,” she said.
City officials have been strategizing on how to close a $12 million gap for this year. A proposed budget is expected to land in front of the Santa Monica City Council within the next two months, with final adoption slated for June.
Originally published in the Santa Monica Daily Press print edition on April 22, 2003. Read the original PDF.