Measure for Measure: San Jose Measure E & Mountain View Measure D

Voting is an essential part of civic engagement, but it can be confusing, especially in local elections. There are some hyper-local issues that we’re deciding on in the upcoming primary election on March 3rd. That’s why we’re doing this round-up of the measures, to provide some insight into the March 2020 ballot.

Today we’re walking you through the two South Bay ballot measures we’ve taken positions on.

Check out our round-up page for more articles on the other measures.

What is San Jose’s Measure E?

Measure E taxes sales of properties worth more than $2 million to fund affordable housing and homelessness services.

Currently, when real estate is sold in San Jose, all transactions regardless of the value of the property pay a 0.33% transfer tax. Measure E would establish an additional transfer tax only on properties worth more than $2 million. Sales of properties worth $2-$5 million will pay an extra 0.75%, sales worth, $5-$10 million will pay an extra 1%, and sales over $10 million will pay an extra 1.5%. The tax should collect $20-$70 million per year. The thresholds for the tax are indexed for inflation in future years.

To avoid needing a two-thirds majority to pass, the measure does not mandate how the revenue will be spent. The city council has adopted a non-binding spending plan, however. The council allocated 80% of the revenue for affordable rental housing, 10% for affordable for-sale housing, and 10% for homelessness services.

To address accountability concerns since the revenue is not bound to affordable housing by law, the measure also requires an annual audit and public report of how the revenue is spent. Additionally, the city council is required to appoint a community oversight committee.

What are the arguments for and against Measure E?

Supporters of the measure argue that it will provide a needed, sustainable source of funding for affordable housing in the city. They also point out that the measure only kicks in on properties worth more than $2 million, which means most first-time homebuyers and moderate-income homeowners would not be affected.

Opponents argue that the measure is another tax increase that follows prior city and county special taxes. They are also concerned that the use of the tax revenue is not guaranteed. Critics also point out that the measure does not address zoning or approval process issues that hinder affordable housing development.

What is TechEquity’s position on Measure E?

This is a progressive tax on the most expensive homes, which establishes a sustainable source of funding for affordable housing and services for those without homes. TechEquity previously endorsed similar successful measures in Oakland and Berkeley. While we’d prefer if the revenue was guaranteed to be spent on affordable housing, we’d also prefer that such a guarantee not require a two-thirds majority. As such, we think the non-binding resolution is a fair tradeoff to facilitate passing the measure.

We say vote YES on Measure E!

What is Mountain View’s Measure D?

Measure D raises Mountain View’s annual rent increase cap for rent-controlled units to 4%. Current law limits rent increases for controlled units to the lesser of inflation or 5%. Inflation has been less than 4% every year since 2001, so this would likely mean landlords could institute bigger increases. The measure allows landlords to impose rent increases up to 10% to recover costs for certain building improvements, including seismic retrofits, environmental sustainability upgrades, and changes that extend the lifespan of the building.

It also exempts duplexes that are the only building on a lot and allows the city council to create more exemptions for those renting their primary home. The measure allows the city council to appoint property owners and managers who are not Mountain View residents to the rent control oversight committee, bans compensation for committee members, and restricts spending by the committee.

What are the arguments for and against Measure D?

Supporters of the measure argue that it makes Mountain View’s rent control program more “sustainable” by allowing landlords to recoup repair costs and making rent increases more predictable. Some proponents claim that landlords are taking properties off the market to be redeveloped because the rent control program limits the income they can receive from those properties.

Opponents argue that the measure would allow larger rent increases. Critics also claim the measure would expand the definition of building repairs to include environmental upgrades and other changes to lengthen the lifespan of the building. They feel these categories are vague and provide a backdoor for landlords to impose greater rent increases. Landlords are already allowed to pass on the costs for seismic retrofits and repairs mandated by the city.

Supporters also argue that the measure cleans up loose ends about the structure of the rent control commission. Specifically, it limits the commission’s spending and ensures commissioners are unpaid. Opponents counter that commissioners have made no attempt to pay themselves and have not made unreasonable funding requests, so those changes are moot points. They add that the city currently has the authority to impose those restrictions.

According to supporters, the changes to the treatment of duplexes and primary homes are necessary to comply with state law. Opponents see those changes as an attempt to weaken the rent control law.

What is TechEquity’s position on Measure D?

It’s wrong to raise the rent increase cap and expand exemptions in the midst of the housing crisis. Some proponents argue that the rent control law is driving property owners to take their properties off the market. The recently passed SB 330 prohibits property owners from demolishing rent-controlled units for development purposes, which should alleviate any potential concerns about losing rental housing.

It’s not clear the other issues cited by proponents, like committee compensation and spending, need to be resolved via this ballot measure. We agree with opponents of the measure that the city council either already has oversight of those issues under current law, or those issues could be fixed with a narrower measure that doesn’t increase the rent caps.

We say vote NO on Measure D!

Check our round-up page for more measure articles as we publish them!

We’re uniting tech workers to create a more equitable economy. Join us!

We believe the tech industry, built on the internet — the most democratizing communications platform in human history — can and should contribute to broad-based economic growth that benefits everyone.