VERITAS ON NOVEMBER BALLOT

At its January 8 meeting, the Santa Monica City Council voted unanimously, with Robert Holbrook absent, to place the VERITAS Initiative on the November 2002 Ballot. This measure provides for City Council members to be elected by residents in the geographical district in which they live, for the mayor to be elected at large, and for term limits on council members service.

RENTAL ISSUES SURFACE IN GLENDALE

Conservative, sleepy Glendale is one of the last places from which one might expect a rent control fight to break out, but that is precisely where the L.A. Times reports that a controversy over how to deal with rising rents has erupted. Trying to stay ahead of the political curve, the Glendale Apartment Association put forth a rent mediation plan, which was unanimously endorsed January 16 by the City Council and the Housing Authority.

Under the plan, landlords are encouraged to limit rent increases to 10% for existing tenants until rental agreements can be revised on their anniversary dates, to allow tenants time to shop around to see if the proposed rents are in line with other units in the marketplace. Tenants receiving rent increases of more than 10% can request mediation with the apartment association.

In a related move the City Council took several steps aimed a encouraging more landlords to participate in the City's Section 8 housing program. The City will provide up to $3,000 to landlords for making needed repairs, has reduced the length of time that owners must agree to stay in the program, and will pay up to $2,500 to Section 8 tenants for move-in assistance and utility deposits.

Predictably, the gestures were inadequate to mollify tenant activists. A "Glendale Housing Crisis Committee" and the Glendale Tenant Association have emerged to take point in advancing more pro-tenant positions. The Glendale Tenant Association sounds legitimate enough, but has for 20 years been a one-member organization. The new bedfellows recently hosted a community forum, which featured among others Larry Gross, a familiar political warhorse, who encouraged the groups to fight for rent control. "It happened in L.A., it happened in Santa Monica, it can happen in Glendale," he is quoted as saying.

ENCOURAGING ECONOMIC NEWS

The American Bankers Association's economic advisory committee believes the recession should be over by spring. The committee consists of nine top bank economists from across the nation. They expect a slow recovery in 2002 and faster growth in 2003. Among the positive forces leading to recovery the committee cited aggressive governmental monetary and fiscal policy, low interest rates, significant inventory corrections, improving consumer confidence and a reduction in claims for unemployment compensation.

Fixed mortgage interest rates are hovering around 7% at this time with adjustable rates in the low 5% range.

The National Association of Realtors reports that home prices reached record levels nationally in 2001 with the number of houses sold increasing 2.7% over the previous year and median prices increasing 6.1%. Although homes sold in California declined 5.7 percent in 2001 from the previous year, still prices are expected to hit a record, because of a shortage of new building, when the final figures are released in the next few days.

ILLEGAL RENT GOUGING BY NEW YORK TENANTS CONFIRMED ON APPEAL

The New York City Case of a tenant being evicted for charging a roommate more than their prorata share of the rent has been upheld on appeal. This practice is common in Santa Monica but has never been challenged here.

"FENG SHUI" DEFENCE REJECTED

The Star reports that a British court has rejected an eviction defense raised by a Chinese shopkeeper that relocating his business from its existing location would ruin his business. The landlord wanted the shopkeeper to move next door. The two premises are almost identical, except that the number four is considered a bad omen in Chinese culture. Such a novel defense may not work in the U.K., but in Santa Monica, who knows?

TIM CORLISS PASSES

Long-time Westside realtor Tim Corliss passed away January 8. He had been a realtor for 42 years and was one of the best-known brokers in this area. Many will remember the firm, Corliss, Pearson, and Douglas which later found the three principals going their separate ways, forming significant firms on their own.