The property management software company RealPage Inc. has filed a lawsuit against the City of Berkeley, California, over an ordinance passed on March 25 that prohibits landlords from using pricing technology to determine rental billing.
The ordinance was passed amid charges from Berkeley officials that this technology results in price fixing schemes among landlords. RealPage has faced scrutiny from the federal government and municipalities including San Francisco and Philadelphia over how its software has been used.
City Councilmember Ben Bartlett, who advocated for the ban, stated, “Technology itself is neutral – people are not. Algorithms can uplift or oppress, depending entirely on whose hands they’re in and whose interests they’re designed to serve. Our role is clear: We must ensure AI empowers communities and not exploits them.”
In filing its lawsuit, the Richardson, Texas-based RealPage said the ban was unconstitutional and marked another example of government official falsely claiming the software is responsible for high rents.
“RealPage is proud of the solutions we provide and the role our customers play in providing efficient and affordable housing in Berkeley and across the country,” said Dana Jones, RealPage CEO and president. “It’s disappointing the City of Berkeley has adopted legislation based on misinformation that will have a long-lasting and detrimental effect on housing in their community and will ultimately stifle innovation. Rather than pursue misguided ordinances, we encourage California’s public leaders to focus on the real issue – the lack of housing supply. Until then, we must take legal action to defend the critical role technology plays in supporting a healthier housing ecosystem.”
