An Oakland property owner exploited Oakland’s often weak rent control protections to remove a 25-unit lakeside property from rent control. The owner bought the then-rent-controlled building for $3.3m in 2013, put $4m into capital improvements, and just sold it for $11m. Under Oakland’s Rent Ordinance, because they spent $4m on capital improvements, the owner was able to petition to have all 25 units declared permanently exempt from rent control because the property had been “substantially rehabilitated.” The previously affordable units are now luxury units that will be rented at the current market rates.
Unfortunately, Oakland’s Rent Ordinance has many exploits and loopholes available to savvy landlords. Oakland should look to San Francisco’s Rent Ordinance for ways to strengthen eviction protections and rent control, and to maintain the supply of rent controlled and affordable housing.