Triumphant Defeat of Proposition 33!

WE WON! Proposition 33 Defeated!

NO ON 33 PREVAILS

• With nearly 95% of precincts in California reporting, Proposition 33 has failed by more than a 20-point margin.
• Michael Weinstein and the AIDS Healthcare Foundation have been defeated for the third time.
• This is a major victory for the rental housing industry, marking wins on:
  • Proposition 10
  • Proposition 21
  • Proposition 33

With nearly 95% of precincts in California reporting, Proposition 33 has failed by more than a 20-point margin. Yes, Michael Weinstein and the AIDS Healthcare Foundation has been defeated for the third time! We can only smile and raise our fists in triumph over the defeat of the so-called “Justice for Renters Act.” And, what a victory it is for those of us in the rental housing business…No on 10…No on 21…No on 33…Amazing! We did it

Potential Passage of Proposition 34

• Proposition 34's Impact: If Proposition 34 passes, it could protect housing providers from future initiatives like Proposition 33.
• Current Standing: “Yes on 34” leads by a 3-point margin, or about 266,000 votes.
• Certification Date: The California Secretary of State will certify the vote counts by approximately December 13.

But wait, there’s more…it looks like Proposition 34 is a strong contender for passing too so “we” rental housing providers will never be subjected to Weinstein’s political vanity projects ever again. While the California Secretary of State will not certify the vote counts until about December 13th, “Yes on 34” leads by a 3-point margin, or about 266,000 votes.

Financial Resources and Opposition

• Total Raised: California housing providers raised over $100 million to oppose Proposition 33.
• Key Opponent: Michael Weinstein, the President of the AIDS Healthcare Foundation, spent over $50 million in support of Proposition 33.
• Controversies Surrounding Weinstein:
  • Labeled as a “slumlord” by the Los Angeles Times.
  • Allegations of neglect in his own properties, including a tragic incident where a blind tenant fell down an elevator shaft due to faulty maintenance.

This time around, it took us, California’s housing providers, more than $100 million to defeat our nemesis and principal Proposition 33 proponent, Michael Weinstein, the President and Founder of the AIDS Healthcare Foundation, who has been declared a “slumlord” by the Los Angeles Times and who along with his minions had put up in excess of $50 million in seeking passage of his extremely destructive, political ego project. Pathetically, this bad seed “Weinstein” (no apparent relation of Harvey’s) would not spend the money needed to fix an elevator at his Los Angeles Skid Row apartment building, yet he was willing to set fire to a $50 million pile of money for his Proposition 33 campaign. (Sadly, Weinstein’s short-sightedness led to a blind tenant at his building falling down an elevator shaft when the elevator door opened without the cabin being there.)

AAGLA’s Campaign Efforts

• Record Fundraising: The Apartment Association of Greater Los Angeles raised nearly $2 million, the largest amount for a single campaign in its 107-year history.
• Statewide “No on 33” Coalition:
  • Utilized funds for TV, radio, and online media, grassroots initiatives, polling, and political strategists.
• Local Outreach:
  • Supported with a billboard campaign, lawn signs, and additional fundraising.

In our battle to defeat Proposition 33, the Apartment Association of Greater Los Angeles raised nearly $2 million – more than we have ever raised for one campaign in our 107-year history. The money raised primarily supported our statewide “No on 33” coalition efforts that purchased millions of dollars in television, radio and online media, paid for grassroots efforts and polling, and covered the costs of a team of smart political strategists that created effective opposition messaging. Our Association also spent significant funds locally on a billboard campaign, lawn signs, and fundraising efforts

Coalition Support from Key Partners

• Critical Partners: Success attributed to alliances with:
  • California Rental Housing Association
  • California Association of Realtors
  • California Business Roundtable
  • California Apartment Association
• Community Effort: Emphasized by Hillary Clinton’s quote, “It takes a village,” in rallying opposition to Proposition 33.

Without fellow coalition members like our affiliate associations under the California Rental Housing Association umbrella, and the California Association of Realtors, California Business Roundtable and California Apartment Association, we would not have achieved this level of success in our opposition efforts to derail Proposition 33. Defeating ill-conceived and harmful regulation absolutely “takes a village” as First Lady and former Senator, Hillary Clinton, once stated.

A Look at What We Overcame

Challenging Political Climate

• Political Context:
  • Post-pandemic economic challenges, with high inflation, fostered pro-rent control sentiment.
• Polling Data:
  • 58% of California respondents support rent control.
  • 80% support rent control in national polls.
  • Federal discussions about national rent caps further pushed rent control awareness.

We overcame Proposition 33 despite a highly unfavorable political climate for us. After having just come through a global pandemic and challenging economic conditions with soaring inflation, when our pollsters asked voters how they felt about “rent control,” more than ever before, some 58% in our polling and over 80% in some national polls I had read, felt that rent control was a good policy. To make matters worse, talk in Washington, D.C. concerning national rent “caps” of 5% placed rent control squarely in the minds of voters.

California Voter Sentiment

• Survey Results:
  • 55% of voters felt California was on the “wrong track.”
  • 63% believed conditions were worsening, with rising living costs, housing costs, and homelessness being major concerns.

And we found that voter sentiment here in California is pretty negative. When we asked voters if they thought California was going in the right direction, about 55% felt that California is on the “wrong track.” We also asked voters whether they thought things here in California were getting better or worse, and 63% responded that they felt things were getting worse here, and of those who felt things are getting worse, 52% cited the costs of living, cost of housing and homelessness as the biggest reasons they felt that things are getting worse for us Californians.

Appreciation for Campaign Contributors

• Thanks to Supporters:
  • Special thanks to those who:
    • Donated to the political action committee.
    • Placed lawn signs.
    • Contacted voters to highlight Proposition 33's negative impact.
• Victory for Voters:
  • California voters decisively rejected rent control, recognizing its negative effects on housing shortages and rental costs.

The pandemic, tough economic climate, and California voter sentiment were challenging hills to climb, and we really must thank ourselves, particularly those who helped get out the “word” about the severe consequences that would have been thrust upon California housing and Californians in general had Proposition 33 passed. So, let me thank those of you who generously contributed to political action committee and our “No on 33” efforts, thank you to those of you who picked up and placed lawn signs, and all of you who made phone calls and sent out emails to help defeat Proposition 33. Thankfully, once again, California voters overwhelmingly rejected a deeply flawed statewide rent control ballot measure.

Looking Ahead

Future Policy Solutions

• Clear Policy Direction Needed:

  • Urgent call for balanced, long-term policies to improve housing affordability.
  • Acknowledgment of decades of restrictive policies that need reformation to support both providers and renters.

There are clear policy solutions that can and would help alleviate California’s affordability crisis and severe shortages affecting the state’s housing market, but voters have made it clear again that expanding rent control is not the right solution. Necessary policy change will only come if and when the business, housing, and advocate communities come together, and create comprehensive and long-term solutions that bring certainty and predictability to the rental housing market that will result in the creation of more affordable housing for all Californians.

• Hope for Lasting Change:

  • “Three strikes and you’re out” mentality, with the hope that defeating Proposition 33 and potentially passing Proposition 34 will end these recurring rent control measures.

Let’s hope this time around, defeating Proposition 33 will be, to coin a baseball term (Go Dodgers!), “three strikes and you’re out!” If Proposition 34’s “yes” sticks, then Michael Weinstein is “out” for sure. Fingers are crossed!

Let’s Keep Up the Pressure!

Challenges with New Political Dynamics

• New Council Members:
  • Two new Socialist Democrats likely joining the Los Angeles City Council: Heather Hutt (District 10) and Ysabel Jurado.
  • While not endorsing Kevin DeLeon, the association urged members to vote for him due to Hutt’s policies.

Urgent Call to Action for Advocacy

• Continued Advocacy Needed:
  • Call to stop merely “taking it” and actively support housing-friendly politicians.
  • All members are urged to:
    • Contribute to the political action committee.
    • Write letters, call elected officials, and share personal experiences.
    • Support candidates aligned with rental housing industry needs.

With such good news, I hate to break it to you, but it looks as though two new Socialist Democrats will be elected to the Los Angeles City Council with Socialist candidate Heather Hutt prevailing over Grace Yoo in District 10, and Socialist candidate Ysabel Jurado prevailing over Kenin DeLeon. (It’s not as though we would have preferred to be supportive of Kevn DeLeon, who has rarely “gone to bat” for housing providers and who was caught on tape participating in a what was described as a racist recording), but considering his opponent’s views, we asked members to hold their nose and vote for Kevin. Working together, we can change bad election outcomes like these and others.

Now that it’s a done deal and I have politely asked, and in some cases begged and prodded (always in a very nice way) you to contribute to our campaign, I want you to heed my warning, if not another Weinstein ballot measure, there will be some other political zealot who lacks respect for rental housing rights and believes in private welfare for the masses who will be seeking to take us down. I say to all of you, STOP COMPLAINING…AND PUT UP OR SHUT UP! If you are sick and tired as I am of facing off against cities councils, county supervisor boards and state legislators over bad policies, then HELP US ELECT POLITICIANS WHO ARE ALIGNED WITH US!

So, let me be blunt here…that’s the job and what you pay me for…We need your help to un-elect the politicians who are dead set against us, who play to a much bigger crowd of tenant activists, who believe the conjecture spun by tenant groups espousing stories about supposed bad actor housing providers. THIS MUST ALL STOP, IMMEDIATELY. Unless you just want to continue to sit back and “take it,” it is imperative upon ALL OF US to help us advocate by writing letters and calling elected officials to voice the opinions of housing providers. I need you to tell your personal stories, support candidates who are aligned with our interests, and of course, please give to our political action committee so we can make a difference and make our advocacy efforts really count.

So, while we are all in the holiday-giving mood, may I suggest that you consider making a contribution to our AAGLA PAC that supports officeholders and candidates for office who see it “our way” and who will not seek to destroy us? Let me show you how you can help:

Please give us your strong support by contributing what you can. The cost of electing more bad apples at the local or state levels of our governments is far more than a few hundred or even a few thousand dollars…the outcome could cost each of us hundreds of thousands of dollars in lost rental income and equity value of our investment properties. Please give generously…funds are needed as soon as possible.

With that, let me wish each and every one of you and your families a safe and happy holiday season. I look forward to seeing and working with you in 2025.

Daniel Yukelson
AAGLA Executive Director - CEO