Industry Issues Advocacy Campaign

In March, Senator Caroline Menjivar (Burbank / San Fernando Valley) and coauthor Assembly Member Nick Shultz (Burbank / San Fernando Valley) proposed a price control measure targeting the self-storage industry - California State Bill 709. 

SB 709 Legislative Counsel’s Digest:

Existing law, the California Self-Service Storage Facility Act, establishes procedures governing the operation of self-service storage facilities, including specifying remedies for facility owners when occupants are delinquent in paying rent or other charges.  This bill would prohibit the owner of a self-storage facility from increasing the gross rental rate for a storage unit by more than the lower of 5% plus the percentage change in the cost of living, or 10%, over the course of any 12-month period, as specified, and would define various terms for that purpose. The bill would require the gross per-month rental rate and any owner-offered discounts, incentives, concessions, or credits to be separately listed and identified in the lease or rental agreement or any amendments to an existing lease or rental agreement.

SB709 will be taken up for discussion and possible vote by the Senate’s Judiciary Committee sometime in next 3-4 weeks. It is currently not deemed to have a fiscal budget impact (although that is one of the strategies we will be arguing) so when passed out of this committee it will move swiftly to a vote with the State Senate. After that, the process will be repeated on the State Assembly side and if passed by both houses with be forwarded to the Governor for his signature, thereby solidifying the measure into law. This situation is moving very quickly.

In summary, the bill as proposed is extremely punitive to the California Self-Storage industry, and its passing will be detrimental to the industry and the value of all California self-storage properties.  The proposed bill caps rent increases at a level that very likely will fail to keep up with rising costs, inflation, and property taxes. Importantly, as seen in Residential Rent Cap legislation, there will be future legislation to lower these caps both at the State and Local levels. This is an attack on our industry and your livelihood.  We have been told that the bill has the speed and support to pass through the legislative process and become law.  THIS SITUATION MUST BE TAKEN VERY SERIOUSLY.

We need to raise as much as $2,000,000 to defeat SB 709. Please donate directly to the CSSA (suggested $2,000 per facility) in support of this exceptionally important effort to defend your business.  Make no mistake, if this measure passes, every self-storage facility within the state will suffer extreme value impairment, thereby impacting your livelihood.