Landlords Hit the Roof Over Study : Santa Monica: A city report that praises rent control draws fire. One advocate of low-cost housing calls report vague.

Some landlords and advocates of low-cost housing complained at a City Council hearing that a state-mandated update of Santa Monica’s housing regulations and policies neglected to look into the effects of rent control and other regulations.

According to the report, Santa Monica’s housing programs are comprehensive and address most of the city’s major needs.

The city staff performed a technical update of housing stock, saying that until new census data is tabulated it will be difficult to thoroughly understand changes taking place in the city and the resulting needs.

The City Council on Tuesday night delayed action on the report for at least one week after Mayor Dennis Zane became ill and had to leave.

Some of the speakers at Tuesday’s public hearing on the update, particularly landlords, used the opportunity to once again attack the city’s rent control ordinance.

“Some of the programs I can wholeheartedly support,” said landlord Donna Alvarez, “but others are a complete disaster. The study says rent control is working. It’s not working.”

Alvarez and other landlords blamed rent control for a decrease in the number of housing units and warned that it would also discourage construction of rental units in the city.

Landlords also criticized a proposal that would require all construction of three units or more to set aside 30% of the units for low- and moderate-income people or pay an in-lieu fee of $22 per square foot.

The city currently requires new construction of five units or more to set aside 15% of the units for low- and moderate-income people or pay an in-lieu fee of $6.50 per square foot.

Attorney Chris Harding, who represents landlords and developers, said increases are not justified and represent further obstacles for the development of new housing.

“The fees will shut down housing development in the city,” he said.

Carl Lambert, a developer and landlord, said the city’s insistence on trying to get developers to fund low-cost housing will backfire.

“Landlords are just going to continue to ‘Ellis’ their buildings rather than continue to pay higher fees,” he said, referring to the state Ellis Act, which allows landlords to legally evict all tenants and get out of the rental business. “It just doesn’t make economic sense.”

Since the Ellis Act went into effect in 1986, owners of more 1,000 units in Santa Monica have notified the city they plan to get out of the business.

Not only landlords criticized the report. Paul Rosenstein, a rent control supporter, called the report vague, saying that he had hoped it would deal with more issues and provide more specific solutions to the city’s housing problems.

Among the findings of the update:

* The city’s 1989 population is estimated at 96,461, up from 88,314 in 1980, an increase of about 9%.

* The average household size increased from 1.97 in 1980 to 2.08 in 1988, which is still lower than the countywide average of 2.83.

* Multifamily housing units made up 76.8% of the city’s housing stock in 1988.

* There are an estimated 2,327 substandard housing units, 514 of which cannot be rehabilitated and should be demolished.

* Based on Southern California Assn. of Government estimates, the city needs 3,220 new housing units by 1994.

Among the recommended policies:

* Land should be purchased and held until financing is available to develop low-cost housing.

* The conversion of residential properties to non-residential uses should be discouraged.

* A program should be developed that would allow developers to build more units than code allows if a percentage of units are set aside for low- and moderate-income people.