We Get Letters: It’s Time Rental Board Should Repay Advance

Dear Pasadena Now,

I am writing to express my concern regarding the $500,000 loan advanced by the City Council to the Rental Housing Board in May 2023. As stated in the City Council record and Chapter 18 of the City Charter, this loan was to be repaid once the Board became operational and began collecting annual fees.

Given that the Board has now collected over $3 million in fees and is projected to collect even more, I believe it is time for them to repay this loan to the City of Pasadena. Furthermore, I urge the Board to include interest on this repayment, equivalent to the interest charged to landlords on security deposits in Pasadena.

This loan was initially provided following the approval of Measure H in November 2022, which created the Rental Housing Board. The City was obligated to front these initial expenses due to the language in Measure H, written by current members of the Rental Housing Board. Since then, the Board has established a substantial budget, hired staff, and implemented a new department.

I am troubled by the Board’s financial management, particularly the $425,000 no-bid contract awarded to BHYV, a consulting company with no active business license, prior business, or staff in Pasadena.  They were to deliver a final report in October 2024 but that was removed from the Rental Housing Board schedule without explanation or follow up.

For two years, we have observed the Board’s operations, including the development of a multi-million dollar budget and an annual fee of $214.71 per dwelling. The implementation of the rental registry was delayed, and only recently began collecting fees in late 2024.

Now that the Board is clearly generating revenue, I call upon them to fulfill their obligation and repay the loan to the City of Pasadena with appropriate interest.

Sincerely,

Adam Bray-Ali