At least 4 of 7 St. Paul City Council members to vote 'no' on rent control; mayor tight-lipped

Sep. 24—At St. Paul City Hall, at least four of the seven city council members plan to vote against a ballot measure that would cap rent increases at 3 percent annually. The mayor, who has shown no great enthusiasm for the proposal, has yet to officially take sides.

On the other hand, council member Mitra Jalali, a renters' rights advocate, is fully onboard. So is council member Nelsie Yang. They've noted that despite the recession and a looming eviction crisis, rents in St. Paul appear largely pandemic-proof. Housing costs have barely dropped for various segments of the market, where they've gone down at all.

State law prevents cities from implementing rent-control measures without a citywide vote. The "rent stabilization" question will be posed to St. Paul voters on the Nov. 2 ballot, and early voting is already underway in Ramsey County.

Council member Chris Tolbert, who chairs the city's Housing and Redevelopment Authority, is voting no, given concerns about how limiting profits with a one-size-fits-all approach could also limit housing construction, which would undermine supply and affordability.

Council President Amy Brendmoen is also a "no," as are council members Dai Thao and Jane Prince. Council member Rebecca Noecker has kept her opinion close to the vest, as has St. Paul Mayor Melvin Carter.

"We are working to explore how this measure would be implemented if St. Paul residents vote to adopt it, and remain committed to continuing our work to address the housing crisis in our community," said Peter Leggett, the mayor's communications director.

In Minneapolis, following a veto by Mayor Jacob Frey of a previous rent-control effort, voters this November will determine whether to give the city council the authority to pursue a rent cap.

Here are the views of the St. Paul City Council members, in their own words:

City Council President Amy Brendmoen

"I do not intend to vote for the ballot referendum on rent control this fall. I appreciate the good intentions behind this initiative, but it has skipped over important public processes including community input, critical analysis, and as such may have unintended outcomes for our city's renters. I will continue to focus my energy on increasing housing stock, supporting deeply affordable units, and providing new home ownership pathways for communities of color."

Council member Mitra Jalali

"I support the rent stabilization proposal. I think it is a critical piece in a much larger housing strategy we're pursuing. I think it will bring needed protections to those at most risk of predatory rent hikes. It's my understanding that if this is passed, the council can offer some revision after a period of time. I've been working to understand the legal process side of that. There's a chance for future engagement and adjustment if it's enacted. Under state law and charter, we can't design this policy without a ballot initiative. I have door-knocked renters in my ward a handful of times. People relate to the instability that happens once a month for them. We just want people to have predictability as far as what they'll pay for their housing."

Council member Jane Prince

"The ordinance before us is far too blunt of an instrument. That's my concern. I definitely appreciate that the housing crisis is being put front and center before us on our ballot. We just can't afford to discourage new construction. Basically, our biggest problem at all income levels is a supply issue. For deeply affordable housing, it's a huge supply issue. (Unlike this ballot initiative), some cities exempt new construction (from rent control, to allow greater profit-making as a construction incentive) for 15 years, and then you roll off of it. ... Last year, property taxes went up 16 percent on average on rental housing. How does that get addressed by this? ... You may see some decline in property upkeep, which is something we absolutely can't afford in St. Paul."

Council member Dai Thao

"I've always supported affordable housing and getting affordable housing into places where it historically has not been possible. We need to do more of what we're doing, which is a surgical approach of helping people who need rent subsidies. It just seems like (rent control is) not the right time or the right strategy. I'm going to be voting 'no.' We've got earned sick and safe time, we've got tenant protections, we've got organized trash. You've got these bold progressive initiatives, and we need to manage them in a way that they won't have unintended consequences that hinder us economically as we try to move forward. Let's really identify the people who need help so we can provide wrap-around services, while we help the developers continue to develop and invest in St. Paul. It allows us to manage the unintended consequences better."

Council member Nelsie Yang

"I'm so supportive of it. I love the campaign and what it's all about, and the policy that's being pushed, being a renter myself. Always engaging renters on the campaign trail, I see the need for it. ... (The critics are) not here talking to the people who are being displaced from their own home. I just got off the phone talking to renters who are no longer living in their apartment because their landlord increased their rent by $400 a month, instantly. When you talk to landlords who are doing what is right, who are making housing sustainable, they don't have an issue with this at all. Housing is a human right."

Council member Chris Tolbert, chair of the St. Paul Housing and Redevelopment Authority

Prior to the pandemic, Tolbert co-chaired a city task force on affordable housing. The favored strategies it came up with were focused on production of new units, preservation of existing affordable housing and tenant protections. He worries that capping rents will backfire by limiting investments in maintenance and production.

"I understand where people are coming from because of the housing crisis, but I don't think it's the right approach. The housing experts I talked to support a targeted, need-based strategy, not a blanket citywide policy. I do think supply matters. It will affect brand new buildings. The most expensive unit in an above-market rate apartment will have that rental limitation as much as the naturally occurring affordable housing. When developers are going to do new developments, they're going to look at those numbers and maybe they'll choose a different place to build. We need to build more units as part of the life-cycle of housing. Other rent-control ordinances start at year 15 or 20 of a building. This starts at year one. A stop on production would be harmful to all housing, at all income levels."

Council member Rebecca Noecker

Noecker said she is "still doing the research" but hadn't committed to making a public statement on the proposal. "We really don't have a role in this. It's up to the voters. If it passes, we introduce the ordinance as written. It's literally like the council is cut out of having a role. It's direct democracy."