Corporate Landlords and California Apartment Association Raise Nearly $55 Million to Kill Prop 33 and Pass Prop 34
The California Apartment Association, the powerful lobbying group for many of the largest corporate landlords in the country, has raised $54.2 million to kill Proposition 33 and pass Proposition 34. Eighty percent of that money comes from a small group of 14 corporate landlords. The real estate companies are desperate to stop anything that prevents them from charging sky-high rents so they can keep generating billions in revenue, allowing CEOs to buy superyachts and party with Drake.
As the housing affordability and homelessness crises worsen, Proposition 33 is a ballot measure that repeals statewide rent control restrictions in California and allows cities to expand rent regulations. The initiative is sponsored by AIDS Healthcare Foundation and its housing advocacy division, Housing Is A Human Right.
The measure is supported by a broad coalition of housing justice groups, labor unions, social justice organizations, and civic leaders, including the California Democratic Party, UNITE HERE Local 11, the California Nurses Association, U.S. Sen. Bernie Sanders, and labor and civil rights icon Dolores Huerta.
Proposition 34 is a ballot measure sponsored by the California Apartment Association and funded by corporate landlords, such as Equity Residential CEO Mark Parrell (pictured above) and Blackstone Group CEO Stephen Schwarzman. It aims to stop AIDS Healthcare Foundation’s housing advocacy work on rent control, which has threatened Big Real Estate’s outsized profits.
In July, Consumer Watchdog, the highly regarded government watchdog group, wrote, “[Proposition 34] is a poorly veiled attempt by the California Apartment Association to silence a political adversary. If it is allowed to be put to the voters, no organization in the future will be safe from similar retribution by monied opponents.”
The Bay Area News Group recently wrote: “Proposition 34 is an abusive use of the state’s initiative system to silence a political opponent. It would set a horrible precedent if it passes and survives legal challenges.”
The news group added that Prop 34 “can best be described as ‘Revenge of the Landlords.’”
A small group of corporate landlords is now delivering tens of millions to the California Apartment Association Issues Committee. In a kind of shell game, the CAA Issues Committee then distributes landlord money to both the No on Prop 33 campaign and Yes on Prop 34.
So far, 14 corporate landlords have delivered an eye-popping $43,689,468 to the CAA Issues Committee. In total, that political action committee has raised $54,266,485, according to the California Secretary of State. Those corporate landlords, in other words, have contributed 80 percent of all monies to the CAA Issues Committee.
To date, No on 33 — Californians for Responsible Housing sponsored by the California Apartment Association has raised $11,435,650. Out of that total, the CAA Issues Committee and corporate landlords have contributed $11,350,000 — nearly the entire amount.
Yes on 34 — Protect Patients Now sponsored by the California Apartment Association has raised $18,538,614, according to the California Secretary of State. Out of that, the CAA Issues Committee and corporate landlords have again delivered nearly the entire amount: $18,250,000. The Yes on 34 campaign also received $250,000 from the California Association of Realtors, another powerful real estate lobbying group, and $38,614 from the California Apartment Association.
Here are the top contributors to the California Apartment Association Issues Committee (source — California Secretary of State):
- Essex Property Trust — $11,159,500
- Equity Residential — $8,085,250
- AvalonBay Communities — $7,264,500
- UDR — $2,956,310
- Prometheus Real Estate Group — $2,751,500
- Prime Administration — $2,000,000
- AIR Communities/Blackstone Group — $1,884,975
- R & V Management — $1,315,700
- Jackson Square Properties — $1,154,550
- Carmel Partners — $1,239,000
- Spieker Companies — $1,125,499
- Decron Properties — $923,400
- Sequoia Equities — $918,584
- Woodmont Real Estate Services — $910,700
Tellingly, Essex Property, Equity Residential, and UDR are mired in the ongoing RealPage scandal, which has triggered state and federal lawsuits and an investigation by the Department of Justice. A RealPage software program allowed a cartel of corporate landlords to wildly inflate rents in states across the country. Now a cartel of corporate landlords is trying to pass Prop 34 and silence AHF.
As the campaign season takes off in September, activists expect the cartel of corporate landlords to shell out at least $100 million to kill Prop 33 and pass Prop 34. In an exclusive, Housing Is A Human Right previously reported that many of the largest corporate landlords in the country are engaged in the Prop 33 and Prop 34 battles.
Activists, in the meantime, urge Californians to consider whether they want to stand with the cartel of corporate landlords or with activists and labor unions. They’re asking people to vote “yes” on Prop 33 and “no” on Prop 34 in November.
Patrick Range McDonald, the author of this article, is the award-winning advocacy journalist for Housing Is A Human Right.
