Do eminent domain laws need to be updated? Which Proposition does the job better? Will rent control be eradicated in California? These are the subjects of two competing ballot measures, Propositions 98 and 99, on the statewide ballot this election. A simple majority is required to pass. Interestingly, if both pass, it is likely that the one that receives the most votes is the one that will be implemented.
Prop. 98, sponsored by Californians for Property Rights Protection and supported by realtors, landlords and taxpayer groups, would limit state and local government’s authority to take private property for development purposes and would also phase out rent control in California.
Prop. 99, by the League of California Cities and supported by local government organizations, labor and environmental groups would also limit that authority, though less severely, and would not impact rent control.
Background on Eminent Domain
Eminent domain, also called condemnation, is the legal process by which a local government or other public body acquires private property for a use that has been declared to be public by constitution, statute or ordinance. In 2005, the US Supreme Court decided a high profile eminent domain case, Kelo vs. City of New London. In the Kelo case, the court upheld that ‘The governmental taking of property from one private owner to give to another in furtherance of economic development constitutes a permissible ‘public use’ under the Fifth Amendment.’
The Kelo decision ignited a swift and widespread backlash from property rights advocates and the general public seeking to prevent future violations of property rights. In 2006, 12 different states had eminent domain initiatives on the ballot. In California, Proposition 90, a reform measure that also would have significantly restricted the extent to which the government could engage in regulatory takings and would also have repealed rent control, lost 52 to 48 percent.
What’s The Buzz?
Opponents of Proposition 98, including a diverse array of politicians and organizations from Governor Arnold Swarzenegger and Senator Diane Feinstein to the Nature Conservancy and the California Redevelopment Association, believe the measure will benefit wealthy landlords, endanger the environment and have a significant fiscal impact on government. The nonpartisan Legislative Analyst has determined that Prop. 98’s restrictions on regulation of a property’s sale price could abolish laws (now existing in about a third of the state’s cities and counties) that require the inclusion of lower-cost housing in new developments.
Paul Hogarth, Managing Editor of the online journal Beyond Chron, writes, ‘While proponents want voters to think it’s about eminent domain reform, Prop 98 is the most dangerous right-wing initiative to hit the California ballot in years. It would abolish rent control, gut the most basic tenant protections, repeal sensible environmental laws and endanger public water projects… the Prop 98 forces don’t really care about the middle-class homeowner who fears eminent domain. They just want to repeal all regulations of private property.’
Opponents of Prop 99 believe the measure falls short in protecting private property rights. Property rights analyst Timothy Sandefur says, ‘The fact is that Prop. 99 would not protect anyone in California from eminent domain abuse. It would not apply at all to small businesses, which are the most common victims of eminent domain. It would not protect people living in apartments at all. It would not protect farms, or churches. It would only protect ‘owner occupied residences.’ And in fact, it would not even protect them, because the small print in the initiative eliminates such protections in almost every case of eminent domain abuse.’
Rent Control Statistics
12 California cities have rent control ordinances
110 mobile home communities statewide have rent controls in place
Approximately 1.2 million people live in rent-controlled housing in California
350,000 people in San Francisco live in rent controlled units
The Public Policy Institute of California released a poll in April 2008 with these results:
71% of California’s likely voters believes that California’s current eminent domain laws need major or minor changes.
53% of likely voters believe rent control is a good thing (39% think it is bad).
37% of likely voters are currently planning to vote for Prop 98, and 41% are planning to vote against it, with 22% undecided.
Whereas, 53% of likely voters plan to vote for Prop. 99.
