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Bill Easing Rent Control Appears Headed for Passage : Sacramento: Tenants gain some concessions from lawmakers, but most provisions would expire in three years.

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TIMES STAFF WRITER

Tenants appear to have won some concessions from Sacramento lawmakers pushing legislation that would weaken rent control laws in Santa Monica, West Hollywood and several other cities.

But most of the concessions will expire in three years if the measure is enacted as expected.

The tentative agreement among landlord representatives, tenant representatives and legislators in Sacramento comes as the bill is ready for a floor vote in the Assembly.

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The measure, sponsored by state Sen. Jim Costa (D-Fresno), has already been approved by the upper house. It would alter strict rent control laws by providing for rent increases to market level whenever an apartment unit is voluntarily vacated. Single-family homes and condominiums would be exempt from rent control after three years.

Many of the concessions made to renters involve making the changes during the three-year phase-in period more gradual.

Terry Reardon, chief of staff for Costa, said the compromises were aimed at making the bill more palatable to those Assembly Democrats who were on the fence about it.

Gov. Pete Wilson, who is not a rent control fan, is expected to sign the measure into law if it reaches his desk.

The fine-tuning of the so-called “vacancy decontrol” bill is largely a Pyrrhic victory for cities with strong rent-control laws, because the compromise makes it certain that a bill they have fought for a decade will pass the Assembly as early as this week.

Lobbyists and lawmakers in favor of the measure “wanted to ensure a margin of victory,” said John Rodriguez, past president of the Santa Monica landlords group, ACTION. “We can live with it.”

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The key for landlords is that they will be able to raise rent to market level after the phase-in period.

“This [compromise] is for three years,” said Bob Sullivan, a Santa Monica property manager and spokesman for the Greater Los Angeles Apartment Owners Assn. “After three years, none of it matters.”

Still, Santa Monica Rent Board attorney Tony Trendacosta said the changes in the bill represent “a significant step toward protecting tenants” from landlord harassment, “a major, major accomplishment.”

Trendacosta said the rent board does not want rent control laws to be weakened, but members saw that the bill was going to pass anyway. “The political realities being what they are, this addresses some of the language problems in the bill.”

Among the amendments that will be tacked onto a separate bill, so as not to slow down the progress of the Costa bill:

* During the three-year phase-in period, when a tenant voluntarily moves out, rents may be raised in two 15% increments, or up to 70% of market value, a change from two 25% increments and 80% of market value. As long as they don’t move out, current tenants’ rent is unaffected.

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* Single-family homes, including condominiums, in cities such as Los Angeles and San Francisco, will be phased out of rent control over three years, instead of abruptly on Jan. 1, as originally envisioned.

* Only evictions for non-payment of rent qualify as cause to raise rents during the phase-in period, a benefit to tenants who fear they will be evicted unfairly so landlords can raise the rents.

* Landlords would have to approve sublease agreements.

Everyone involved cautioned that the latest version of the bill is subject to further changes.

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