Rent Is Too Damn High in Sacramento

I don’t think there are many who would argue that Sacramento has not been hit hard by a statewide housing crisis. Indeed, the city had the third-highest overall rental increase in the nation in 2017 – and that has not gone unnoticed by its citizens. Unaffordable rents, compounded with stagnant and eroding wages and overwhelming student loan debt, among other factors, have left people of all ages (particularly young people) screwed…for lack of a better term.

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They’re pissed and ready to do something about it, too.

At the state level, one such effort is a ballot measure that will be voted on in November. If passed, the initiative would overturn the Costa Hawkins Rental Housing Act, passed in 1995. The law essentially makes it difficult for cities and counties to enact rent control policies in the state. While for some the jury is still out on whether or not rent control makes a meaningful impact for renters in the long-term, it is a clear sign that renters are ready for relief now.

There is also an effort at the local level in Sacramento called the Sacramento Renter Protection and Community Stabilization Charter Amendment. Pushed by a coalition of tenant rights organizations called Housing 4 Sacramento, as well as Organize Sacramento, this measure would, among other things, provide financial support for renters who are displaced, limit what landlords can evict tenants for, and cap rent hike percentages per year. Mayor Steinberg has openly opposed the rent control initiative, but has proposed his own plan which includes raising the sales tax a full cent, creating a rent stabilization fund for displaced renters, and encouraging more development.

So, this begs the question of who’s protecting the interests of renters in Sacramento.

There’s the Sacramento Housing Alliance, which according to their website, “advocates for safe, stable, accessible, and affordable homes in the Sacramento region”. The organization’s priorities include fighting for affordable housing for veterans and homeless individuals, as well as advocating for the local rent control effort.

There’s also the Sacramento Housing and Redevelopment Agency, which “was created to ensure the ongoing development of affordable housing and to continuously fuel community redevelopment projects in the city and county of Sacramento”. The organization helps develop and fund affordable housing opportunities and maintains rental assistance programs, among other things.

And then there’s CADA, which develops and maintains affordable housing units for renters in Sacramento. According to their website, they are the largest affordable housing developer in the central city and focus on sustainable, transit-oriented, community-minded dwellings. In many ways, CADA is its own animal in that it “is tasked with meeting challenging government mandates in a business model closely paralleling a private real estate management and development company.” This model includes having at-will rather than civil service employees, maintaining competitive market rate housing to help fund investment into affordable housing, and cultivating public-private partnerships.

Anecdotally, I have heard from many of my peers just how difficult it is to make it onto the CADA waitlist, which apparently has been impacted for years. This is no surprise as the demand for such units has increased dramatically.

Over the years organizations like CADA have faced many challenges, including the dissolution of California’s redevelopment agency, which has led to decreased funding to build and manage projects. Despite the growing demand for affordable housing, they are often left to make difficult financial decisions in order to continue moving forward.

One such decision occurred recently at a July 19th CADA board meeting, where the board voted to sell one of their properties to the development firm Cresleigh Homes. The project on the corner of N & 14th streets will not only displace current tenants within the 30 units to be torn down, it would allow the developer to sell 32 1-bedroom units for $748 per sq. ft. ($608k/avg per unit), 53 2-bedroom units for $443 per sq. ft. ($964k/avg per unit), and two 3-bedroom units for $347 per sq. ft. ($1.875mil per unit).

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On its face, such a decision appears to directly contradict the public need by demolishing currently available affordable rental housing in lieu of pricey market-rate homes for sale; however, accordinging to the staff analysis, this will “satisfy CADA’s the long-held strategic goal of providing more home-ownership opportunities in the Capitol Area”. We can only hope the revenues generated from such a deal will eventually provide more affordable rental units for not only those who will be displaced, but those in need who have yet been able to access.

More broadly, it is imperative that state and local governments work together to develop long-term solutions and re-invest in bolstering the housing supply. It is a complex issue that involves the intersection of everything from local zoning ordinances to environmental impact assessments, and of course, finding the money needed to make it happen. I defer to those much smarter than I on the right solutions – but it is clear that the timing is now for the well-being of Sacramento and California as a whole.

We’re in a housing crisis, after all.

Happy 4th of July!

We hope you are having a wonderful time surrounded by family and friends.

We know many of our friends around Sacramento may not be feeling especially patriotic these days, but we choose to celebrate anyway, because as our 18th President (That’s a West Wing reference, you’re welcome.) reminded us:

TRSacramento“Patriotism means to stand by the country. It does not mean to stand by the president or any other public official, save exactly to the degree in which he himself stands by the country. It is patriotic to support him insofar as he efficiently serves the country. It is unpatriotic not to oppose him to the exact extent that by inefficiency or otherwise he fails in his duty to stand by the country. In either event, it is unpatriotic not to tell the truth, whether about the president or anyone else.”
― Theodore Roosevelt (Did you know he gave a speech in Sacramento? The Mayor he refers to in the speech was George H. Clark.)

Or as Mark Twain put it:

“Loyalty to country ALWAYS. Loyalty to government, when it deserves it.”

Most important, enjoy your celebrations safely:

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Showdown at the Shops: The 1894 Pullman Strike

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Guest Post by William Burg

On July 4, 1894, two companies of Sacramento militia, bayonets at the ready, faced three thousand strikers at the Southern Pacific passenger depot on Second and H Street, main entrance to the Southern Pacific Shops. The soldiers, all Sacramento residents, stared down their rifles at neighbors, friends, family and coworkers. Their orders were to retake the Shops from the American Railway Union (ARU) strikers, by force if necessary. A third company of Sacramento militia had refused orders and remained at the armory. The strikers, unarmed, had only their bodies to stop the militiamen. “You wouldn’t put that steel through me, would you, Bill?” said one striker to his brother in uniform. “Go ahead, Jack; jab your bayonet through me, and make your sister a widow,” said another. “Go ahead boys, and run us through, we might as well die here as to starve.”

California_National_Guardsmen in Capitol Park

California National Guardsmen in Capitol Park

The Sacramento militia commander, Brigadier General Timothy Sheehan, considered the situation. Behind him were San Francisco guardsmen, exhausted after an overnight trip to Sacramento, poorly fed, and entirely unused to Sacramento’s scorching summer heat. In front of his soldiers were strikers unwilling to yield. And on July 4, any random firecracker could be misinterpreted as a gunshot, setting off a bloodbath. Upon his arrival at the Shops, he saw that the strikers included women and children, even babies, and an atmosphere that seemed more like a picnic than a strike, until his soldiers arrived with fixed bayonets. Sheehan asked strikers to disperse. Major Harris Weinstock, partner in the Weinstock & Lubin department store and Sheehan’s executive officer, repeated the command. The strikers answered in chorus, “You can never enter here unless you do so over our dead bodies.”

The nerve of the militia broke first. Some unloaded their weapons, or even handed their rifles to the strikers. Another company from Stockton retreated to nearby shade, accepting an offer by ARU strikers of iced lemonade (the entire unit was later dishonorably discharged and imprisoned.) Sheehan reported the situation to his superior officer, who turned command over to U.S. Marshal Barry Baldwin. Baldwin dispatched the Sacramento companies to guard the bridges over the Sacramento and American rivers, and climbed atop a locomotive cab, hoping to persuade the strikers with force of oratory where arms had failed, to no avail. The Shops workers cheered as the soldiers returned to the armory at Sixth and M Street, but their victory was short-lived.

Strikers jeer US Marshall Barry Baldwin

Strikers jeer US Marshall Barry Baldwin

The struggle at the Shops began on June 28, 1894, spurred by events half a continent away, at the company-owned town of Pullman, Illinois, home of the Pullman Palace Car Company. Pullman’s patented “sleeper” passenger cars were synonymous with long-distance train travel and used on nearly every railroad. An 1893 depression brought on by railroad bankruptcies and resulting bank failures meant a dramatic drop in Pullman car sales. Pullman cut their employees’ wages by 30%. These wage cuts outraged workers. The company also refused to lower rent in their company-owned housing, and the cuts came just as stockholders received an 8% dividend. Pullman employees, members of the ARU, voted to strike and walked out on May 11, 1894.

On June 27, the strike was still unresolved, and ARU president Eugene V. Debs called on all members belonging to railroads west of Chicago to stop any train with Pullman-owned cars—in other words, nearly every passenger train. The ARU was a new union, founded in 1893 and not officially recognized by the railroads. Some railroad workers, including engineers, firemen and brakemen, already had their own unions, but many, including boilermakers, blacksmiths, and car builders, did not. The ARU was open to all railroad employees, attracting thousands of workers in cities like Pullman and Sacramento, who built or serviced railroad equipment but lacked union representation. In August 1893, the fledgling ARU forced the Great Northern Railway to roll back wage cuts, its first and only victory. The Pullman strike was the second major effort by the new union to exercise its strength, with dramatic results that stopped trains across half the continent.

In 1894, Sacramento was almost as much a company town as Pullman: Southern Pacific employed about one-third of the city’s workforce. SP traditionally had excellent labor relations, but the railroad was far less popular with the general public and the press, who objected to SP’s high rates and monopoly on California traffic. Sacramento Shops employees were not allowed to join existing railroad unions, so ARU membership became very appealing to local workers who sought the benefits that union membership brought their fellow railroad workers. The ARU’s success against Great Northern strengthened that appeal. By the 1890s, California was already one of the most urbanized and industrialized states in the country; only one-fifth of the state population was rural, and new immigration promoted enormous industrial growth in California’s cities, including Sacramento. Even the state’s agricultural resources were organized around industrial production rather than small family farms, using migrant labor on massive corporate farms called “factories in the field” by labor writer Carey McWilliams. The “Panic of 1893” and resulting depression meant many of these workers were unemployed or underpaid.

In April of 1894, only a few weeks before the Pullman strike, “Coxey’s Army,” sometimes called the Industrial Army or the Army of the Unemployed, had passed through Sacramento from the Bay Area on its way to Washington DC, intended as a national protest against economic inequality and unemployment. This group was still marching towards Washington when the Pullman strike started, but California business and government leaders were already alarmed by growing protest and labor unrest throughout the country.

Railroaders across the western United States joined in the boycott. The strike paralyzed railroad traffic across California, including Los Angeles and Oakland, but Sacramento was the hub of the California railroad network and had the largest representation of ARU members. About 2100 of the Shops’ 2500 workers joined the strike, part of an estimated 125,000 strikers nationwide, and hundreds of nearby ARU members came to Sacramento to join the strike. Its timing in deep summer, peak fruit packing season, meant that cars full of fresh fruit rotted on freight platforms and in stopped trains.

Strikers gained a propaganda coup when Jane Lathrop Stanford, widow of former Southern Pacific president Leland Stanford, was stranded in her private railroad car in northern California and wished to return home to San Francisco. She met with the strikers in Dunsmuir and received direct permission from Eugene V. Debs to run her train through Sacramento to her home. Crews decorated the train as a giant pro-strike banner, replacing “SP” (Southern Pacific) on the side of her car with “ARU” spelled out in flowers. Public opinion was swayed, more by antipathy to the railroad than support for the strikers.

Debs and the ARU offered to reopen traffic to non-Pullman trains, but Southern Pacific president Collis P. Huntington refused, and deliberately attached Pullman cars to every train. Huntington saw the chance to eliminate the union by breaking the strike, while compromise would further legitimize the ARU. SP vice-president Henry Huntington (Collis’ nephew) urged other railroad leaders to stand firm: “This is the first strike we have ever had here and as we are making history, [I] think we ought not to take a step backward and make such concession that we will hereafter regret them.”

Another method used by the railroad to avoid compromise was federal leverage. Since many trains included Railway Post Office cars, the strike interfered with the federal mail system. After convincing a U.S. District Court that it was impossible to operate any trains without Pullman cars, Collis Huntington asked for federal help to break the strike, on the grounds that interfering with mail delivery was a federal offense.

In Sacramento, this support came in the form of U.S. Marshal Barry Baldwin, who asked Governor H.H. Markham (marooned in Los Angeles by the strike) to call up the state militia. Troops quickly retook the railroads in Los Angeles, but Sacramento was a more daunting task. On July 3, Baldwin and his marshals tried breaking the strike with a group of deputies, assembling a train in the Southern Pacific yards intended to run through the blockade. Just as the train was assembled, strike leaders gave a pre-arranged signal and strikers rushed the train, disassembling it in a few minutes and thwarting Baldwin’s efforts. Railroad superintendents Wright and Heintzelman were physically removed by strikers when they attempted to start the locomotive. Baldwin tried to break through the crowd and draw his revolver, but was disarmed by strikers. After losing his sidearm, Baldwin gave up and left the depot in strikers’ hands.

Militia marching past Sixth and L Street

Militia marching passed Sixth and L Streets

Strike leaders disavowed violence, but behind the scenes strikers attacked scabs and skirmished with railroad supporters and police. In addition to the guns taken on July 4, strikers took arms from the Bersaglieri Guard, a local Italian militia organization with a small armory. Some thought that the Pullman strike might become the first wave of an armed revolution of Populists and union laborers against the federal government and private industry. Public support for the strike waned as these fears mounted. On July 7, the leaders of the ARU in Chicago were arrested, leaving the strike leaderless as federal forces gathered strength. President Grover Cleveland authorized regular Army troops to relieve the state militias, like the Sacramento soldiers who failed to fire on their friends and family when ordered to do so. More disciplined professional soldiers would have no such qualms.

On July 11, 800 U.S. Army troops arrived in Sacramento via the steamboat Alameda. Colonel Graham of the San Francisco Presidio led two troops of cavalry, five batteries of light artillery, six companies of marines, and one company of regular infantry. Marching up Front Street from the Y Street levee, gunfire was exchanged between strikers and militia, about fifty shots, but without significant casualties.

Soldiers bivouacked at SP Shops

Soldiers bivouacked at SP Shops

Upon arriving at the depot, the soldiers discovered the ARU had abandoned the Shops the previous night, so they secured the Shops and set up defensive positions. The strikers knew that federal troops would be harder to convince than local militia, and abandoned the Shops on the night of the 10th. The first train west left Sacramento for Oakland later that day, under heavy guard, but was derailed two miles before reaching Davis. Saboteurs had removed spikes and fishplates from the rails, causing a wreck that killed the train’s engineer and three soldiers. On the 13th, troops guarding a train were attacked by gunfire. The soldiers’ return fire killed one striker and wounded another. Popular opinion turned against the strikers in the wake of the sabotage, and by July 18, the Southern Pacific Railroad was back in operation and the Shops reopened. The next day, Debs telegraphed the strikers to open negotiations with the railroad, and the strike formally ended on July 22.

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Sabotaged train following Shops strike

During a month of occupation by federal troops, seven people were killed by sabotage or incidents attributed to vengeful soldiers. After the strike, Southern Pacific quietly fired ARU members and blackballed them from future employment. While the strike’s failure was a serious blow for organized labor, only steady nerves, the bonds of community, and perhaps luck prevented a bloody massacre at the entrance to the Southern Pacific Shops.

In the strike’s aftermath, Eugene V. Debs was sent to prison, despite an impassioned defense by Clarence Darrow, a former railroad lawyer who became a labor lawyer after his defense of Debs. Debs ran for President as a socialist, including one campaign run from his prison cell, and founded a new organization, the Industrial Workers of the World, in 1905. Henry Huntington, Collis’ nephew, moved to Los Angeles after the Southern Pacific board of directors did not make him the new board president following Collis Huntington’s death. Major Harris Weinstock was deeply affected by the events of the strike, and wrote a study on labor relations for the State of California, urging employers to negotiate with workers, improve worker conditions, and recognize their right to unionize. In reaction to the failure of local militias to retake the shops, California’s militia system was professionalized into the reorganized California National Guard, including a new Guard armory at Twelfth and X Street. The new Guard and armories were a direct response to labor unrest of this era, including the Pullman strike.

In The Incorporation of America, historian Alan Trachtenberg described the Pullman strike as the victory of corporate power over organized labor, a watershed moment in American labor. Sacramento’s Southern Pacific Shops became the West Coast’s greatest battlefield during that pivotal event in history.