Woke Orange County Supervisor Vicente Sarmiento finally has endorsed a candidate in the hotly contested race for the 68th State Assembly District.
As expected Sarmiento ignored one of his fellow progressives in the race, Santa Ana City Councilman Johnathan Ryan Hernandez, which makes sense since Hernandez’ campaign website remains offline and he has barely raised any money for the race.
Another liberal Santa Ana Council Member, Jessie Lopez, who works part time for Sarmiento, has been tabbed as his choice candidate.
It makes some sense for the left that Hernandez remains in the race for the 68th as perhaps they are hoping he will take away male votes from the leading candidate, Santa Ana Mayor Pro Tem David Penaloza.
Penaloza has been endorsed by the current representative in the 68th Assembly District, Avelino Valencia. That is a far more important endorsement than Sarmiento’s.
Consider that Sarmiento has barely won his last few campaigns. His support is quite slim. He also has not made any fans by being anti-police. In fact Sarmiento and his sister, who died in a slip and fall accident a couple years ago, made quite a bit of money suing police departments in cases involving criminals who were shot by police.
The majority of the voters in the 68th Assembly District are of Hispanic descent but most of them have families that hail from Mexico while Sarmiento’s family came here from Bolivia, a country now known for its robust cocaine trade.
Jessie Lopez has been involved in significant legal and political controversies regarding her former landlord and a related recall election:
- Eviction and “Squatting” Allegations: In 2022, her former landlord, Hector Orellana, claimed Lopez refused to vacate his house after he sold it, even after other tenants (including her own mother) had moved out. Orellana alleged this “squatting” jeopardized the sale and his ability to close on a new home.
- $35,000 Court Judgment: In October 2024, the Orange County Superior Court ordered Lopez to pay Orellana $35,000. The judgment was for legal fees, delayed escrow costs, and what the court described as “continued, nonstop, unacceptable harassment and neglect” by Lopez during the dispute.
- Recall Election: These allegations were used as a primary justification in a 2023 recall attempt against her. Proponents cited her “disregard for private property rights” and failure to vacate the property. Despite the controversy, Lopez survived the recall on November 14, 2023, with supporters arguing the recall was actually a retaliation by the police union and real estate groups over her support for rent control.
Rent control is Lopez’ signature issue, but economists generally agree that while rent control provides immediate relief for current tenants, it often creates long-term market distortions that can lead to higher overall rents and a reduced housing supply.
The primary economic consensus highlights several unintended consequences:
1. Reduced Housing Supply
- Unit Conversions: To maintain profitability, landlords often convert rent-controlled apartments into condominiums or owner-occupied units, which are exempt from rent caps. In San Francisco, a landmark study found that rent control led to a 15% reduction in the rental housing supply.
- Discouraged New Construction: The risk of future rent regulations can deter developers from starting new projects, even if new buildings are initially exempt from the rules.
2. Higher Rents in Uncontrolled Sectors
- Supply Shift: As the supply of rent-controlled units shrinks, the remaining demand “spills over” into the uncontrolled market.
- Price Hikes: In New York, rents for unregulated apartments were found to be 22% to 25% higher than they would have been without rent control.
3. Declining Housing Quality
- Maintenance Cutbacks: When landlords cannot raise rents to cover rising costs (like property taxes and repairs), they often defer maintenance.
- Evidence of Decay: Studies in New York City showed that 64% of rent-controlled units had maintenance deficiencies compared to 47% of unregulated units.
4. Benefits vs. Inefficiencies
- Stability for Some: Current tenants enjoy significant savings and protection from displacement, which can lead to better health and school performance for children.
- Poor Targeting: Benefits often go to long-term tenants regardless of income, sometimes leaving needier newcomers to pay much higher market rates elsewhere.
- Reduced Mobility: Tenants are less likely to move for better jobs or to downsize because they don’t want to lose their below-market rent, a phenomenon known as “housing misallocation”.
Many economists suggest that direct cash subsidies or housing vouchers are more efficient ways to help low-income families without distorting the overall housing market.
A large immigrant population, including undocumented individuals, does increase overall housing demand, particularly for rental properties. Some reports suggest immigration accounts for a significant portion of rental demand growth nationwide. Lopez has been a staunch supporter of Santa Ana’s status as a Sanctuary City. The influx of undocmented residents in the area has limited the availability of rental housing in Santa Ana and has driven up rental costs.
All of the candidates noted above are registered Democrats. The difference is that Penaloza is the only one of them who supports law enforcement. That figures as his father was killed by a drunk driver. Hernandez brags about growing up in Santa Ana’s gang culture and Lopez consistently votes against punishing criminals.
While Lopez can brag about the Sarmiento endorsement, check out Penaloza’s endorsements:
Elected Officials
- Robert Rivas: Speaker of the California State Assembly.
- Avelino Valencia: Incumbent Assemblymember for the 68th District (who is running for the State Senate).
- Katie Porter: Former U.S. Congresswoman.
- Dave Min: U.S. Congressman.
- Valerie Amezcua: Mayor of Santa Ana.
- Other Assemblymembers: Patrick Ahrens, Anamarie Ávila Farías, Mark Gonzalez, John Harabedian, Blanca Pacheco, Cottie Petrie-Norris, Sharon Quirk-Silva, Jose Luis Solache, Mike Fong, and Jessica Caloza.
- Numerous Local Leaders: Mayors and council members from Anaheim, Orange, Buena Park, and Costa Mesa.
Labor Unions & Organizations
- California Teachers Association (CTA): Endorsed due to his support for educators and public education.
- Association of Orange County Deputy Sheriffs: Endorsed for his support of public safety and law enforcement.
- UNAC/UHCP: United Nurses Associations of California / Union of Health Care Professionals.
- UA Local 582 Plumbers and Steamfitters.
- Roofers Union Local 220.
- Southern California Pipe Trades District Council No. 16.