New San Jose City Council Passes Crucial Change to Rent Control Ordinance

Yesterday, the San Jose City Council voted on a critical change to the banking component of the City’s rent control law. The original ordinance, passed by the previous Council, allowed landlords who did not raise the rent in a given year to save or “bank” the unused rent increase and apply it at a future date. With a vote of 7-4, the City Council eliminated banking.  Mayor Liccardo, and Council Members Chappie Jones, Johnny Khamis and Dev Davis were the dissenting votes.

Additionally, the Council voted 8-3 to keep the City’s rent registry, which is used to track rents in rent-controlled units in an effort to ensure landlords are complying with the regulations. Council Members Dev Davis, Johnny Khamis and Lan Diep were opposed.

Tuesday’s votes indicate a shift in San Jose’s City Council, with a progressive majority leading the agenda for the first time in more than a decade. This change in the ideological make-up of the Council will be imperative as San Jose moves to increase the middle class, create better jobs, protect its most vulnerable communities and pass policies that help working families thrive in Silicon Valley.

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