Proposition 98 Threatens All Californians—Not Just Renters

[courtesy of California Progress Report]

By Vivian Kahn

Much of the recent press coverage on Proposition 98 has focused on the effect this proposed constitutional amendment would have on renters. Homeowners who ignore this ballot measure because they think it has nothing to do with them do so at their own peril because this devious initiative would amend the California Constitution in ways that could, in fact, have sweeping impacts on all Californians.

The proponents of Proposition 98 advertise the measure as an effort to control public agency use of eminent domain because they know that California voters would likely support a measure to protect homeowners from having government take their property to use it for private development. They also acknowledge that passage of Prop 98 would end rent control (although they dismiss concerns about immediate impacts on renters claiming that nothing happens until tenants vacate their units). In fact, the same section of Prop. 98 that could undermine renter protections such as “just cause eviction” regulations would also threaten a wide range of land use and environmental regulations and programs.

Prop. 98 would have this effect because of a provision that specifically prohibits laws and regulations intended to "transfer an economic benefit to one or more private persons at the expense of the private owner." The State Supreme Court has recognized that land use regulations are likely to impose costs on the affected party, while transferring economic benefits to another private party. In fact, many local plans and ordinances identify the protection and enhancement of property values as an objective. And even if this is not specified, it is implied.

Most Californians accept the fact that there are limits as to how we can use our property and recognize that these limits are imposed for the public good. Your neighbor’s property may be worth more because zoning laws don’t allow you to construct a 60 foot high addition to your home but this is a type of restriction that most Californians accept. Similarly, most of us believe it is appropriate for local governments to impose limits on the hours of operation of certain businesses or require subdividers to dedicate land for parks and schools that will be used by and benefit the community at large.