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Proposed Regulations and Restrictions on Property Owners Are Coming - Start Preparing for Change
On January 25, 2023 the Monterey City Council held a special workshop meeting to update the city’s "City Staff Work Program" and propose new policy directions for the city. While your Monterey Peninsula Chamber of Commerce sees economic benefits from much of the plan, some of the new proposals will require review by your Government Affairs Committee and Board of Directors. Three controversial issues the Monterey City Council will address in 2023 are related to property rights and housing costs: (1) requiring property owners who rent their properties to register with the city (and presumably pay a fee with the registration), (2) a property vacancy tax, and (3) rent stabilization, aka rent control.
Your chamber recognizes the challenge of rental costs in the City of Monterey. About two-thirds of City of Monterey residents rent their housing, according to the U.S. Census Bureau. However, the Chamber has historically opposed the concept of government restrictions on rents. Rent control is beneficial for some people, but when prices do not reflect the true relationship between supply and demand, unintended negative consequences can occur for property owners, future prospective residents, and the economy as a whole.
The Chamber would prefer to see rising rental costs eased through government relaxing restrictions and impediments on the supply of housing, rather than distorting prices on existing housing with price restrictions. Nevertheless, there are significant democratic pressures on the city council, as some politically active residents want government to limit increases on rental housing supply AND limit increases on rents for that existing limited housing supply.
See the minutes of the workshop here: Receive Update on the 2023 City Staff Work Program and Provide Direction
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