Prop. 33 will allow California voters to decide on removing rent control ban

Last Updated on July 23, 2024 by The HD Post Staff

CALIFORNIA – Proposition 33, Justice for Renters Act, will be on the California ballot, November 5, for voters to decide on removing a rent control ban.

According to Ballotpedia, a “yes” vote repeals the Costa-Hawkins Rental Housing Act (1995), which will allow cities and counties to limit rent on any housing.

A “no” vote opposes repealing Costa-Hawkins Rental Housing Act. It will prohibit rent control on single-family homes and houses completed after February 1, 1995.

Effort to address housing affordability and tenant protections

Costa-Hawkins exempts specific properties from rent control — single-family homes and construction completed after February 1995 are exempt.

In cities with pre-existing rent control when Costa-Hawkins was enacted, it grandfathers in earlier exemptions for new construction.

In addition, it allows landlords to adjust rents to market rates after a tenant vacates.

By repealing Costa-Hawkins, the Justice for Renters Act would:

Allow local governments to apply rent control to newer buildings, including those constructed after 1995.
Permit rent control regulations to apply to single-family homes and condominiums.
Potentially end vacancy decontrol, enabling local jurisdictions to impose rent caps even when a tenant leaves a rental unit.

This repeal would give local governments more authority to enact stricter rent control measures in an effort to address housing affordability and tenant protections.

Rent control would deter investment in new housing construction

The California Apartment Association (CAA) says that for rental property owners, the implications of the Justice for Renters Act are severe.

“The potential for strict rent control across all housing types would deter investment in new housing construction, exacerbating California’s already dire housing shortage,” said CAA marketing and communications director Mark Nemeth.

He goes on to say that with unbridled rent control, landlords would see a decrease in their properties’ values and, as a result, a reduction in the quality and availability of rental housing.

According to the Yes on 33 Justice for Renters website, veterans, senior groups and labor unions support the Yes on 33 Act.

For more information about Prop 33 visit https://ballotpedia.org/California_Proposition_33,_Prohibit_State_Limitations_on_Local_Rent_Control_Initiative_(2024)