San Diego is facing an ongoing crisis around housing affordability, prompting city officials to introduce a proposal aimed at protecting tenants from overcharging for utilities provided by the city.
In a move to enhance tenant protections, city leaders are considering legislation that would prohibit property owners from charging renters more than what they pay for city-provided utilities, including water, stormwater, and soon, trash collection.
Under the proposed law, landlords would not be allowed to pass on additional charges to tenants beyond the utility bills received from the city. This plan would also provide tenants the right to review copies of their landlord’s utility bills, promoting transparency in how these charges are assessed.
Currently, tenants in San Diego lack such protections, leading many to feel vulnerable, especially when dealing with large corporate housing companies that often exploit these gaps to impose high utility fees.
“There is a massive power imbalance that exists between tenants and landlords,” said Councilmember Sean Elo-Rivera during a recent meeting of the committee discussing the ordinance.
Elo-Rivera highlighted the difficulties faced by renters who may not have the resources or option to move out of their homes without significant upheaval.
The proposed legislation arises amid a broader cost-of-living crisis in San Diego, where half of the city’s housing stock consists of rental units that are nearly fully occupied.
The persistent shortage of rental availability has led to skyrocketing rents, with the average asking rent in San Diego now at a staggering $3,096, as reported by a Zillow analysis.
In comparison, the national average for asking rent stands at $2,024. San Diegans are also facing higher inflation rates than the national average, with the Consumer Price Index (CPI) in San Diego at 3.8% in March, compared to just 2.4% across the country.
“San Diegans are experiencing higher than average rental rates as well as higher increases in the cost of everyday goods,” said Jefferey Nguyen, a policy advisor for Elo-Rivera.
Nguyen emphasized that the goal of the new legislation is to promote fairness, equity, and transparency regarding utility fees charged to tenants by landlords.
Representatives for property owners expressed neutrality towards the proposal yet voiced concerns regarding its implementation and the additional notice requirements it would impose.
Craig Benedetto, a public policy consultant engaged with property owners, remarked that while overcharging may occur in select cases, the legislation appears to be addressing a non-issue.
“There is no overcharging occurring. It’s strictly just passed through to the tenants,” Benedetto stated. He suggested that property owners typically provide accurate information when utility charges are requested.
On the other hand, attorneys advocating for tenant rights proposed several adjustments to fortify the ordinance. They suggested mandatory notice provisions, the option for tenants to cite noncompliance as a defense in eviction cases, and the requirement of landlords to proactively furnish utility charge details.
“Sometimes tenants are scared to ask for this information from their landlords and fear retaliation,” explained Gil Vera, deputy director of the Legal Aid Society of San Diego.
By mandating disclosure, Vera believes the atmosphere of intimidation around requesting such information would dissipate, leading to enhanced transparency.
After considering public comments on the proposal, City Council President Joe LaCava acknowledged that some tenants might indeed feel hesitant to request their landlords’ utility bills.
He voiced support for the idea of requiring landlords to disclose actual utility costs to tenants.
“I remember being in private business when I tried to get reimbursement for expenses, I had to show the receipts for what I was asking for reimbursement,” LaCava added.
With the committee’s backing, the proposal will advance to the full City Council for consideration, needing two votes and the mayor’s signature before it can be fully enacted.
The legislation is expected to be deliberated as early as July or August.
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