CALIFORNIA – CalAccess.gov, California’s online database for tracking campaign finance activity, shows that corporate landlords and their lobbying group, the California Apartment Association (CAA) have raised $124 million to campaign against rent control, a November 5 election ballot measure.
Proposition 33 – the Justice for Renters Act, will allow cities and counties to limit rent on any housing including single family homes and housing built on or after February 1, 1995.
Well-funded opponents often use campaign funds to finance advertisements, media coverage, and outreach efforts that shape public opinion. This gives them the ability to potentially influence voters to view a proposition unfavorably.
Los Angeles-based AIDS Healthcare Foundation (AHS) has raised the majority of the $50 million in support of the measure.
Rent control ballot measures in 2018 and 2020 were defeated
Although financial backing doesn’t guarantee results, historical data suggests that propositions with significant opposition funding often face more challenges.
When rent control ballot measures came up in 2018 and 2020 they were defeated. Fundraising by landlords in 2018 were $76 million in opposition while supporters raised $27 million. In 2020, $94 million was raised in opposition to the measure and $40 million was raised in support of it.
According to campaign finance records in the CalAccess database large corporate real estate companies including Blackstone Real Estate Advisors, the Essex Property Trust, Equity Residential and Avalon Bay raised much of the $124 million.
These companies have investments from the California Public Employees Retirement System (CalPERS), the California State Teachers Retirement System and the San Francisco city employees’ retirement fund.
If Proposition 33 passes, some renters would spend less on rent
The Legislative Analyst’s Office (LAO) said that if Proposition 33 passes, local rent control laws probably would expand in some communities.
“Some renters who live in properties covered by rent control would spend less on rent, while those in properties not covered would likely face higher rents,” said the LAO.
This is because rent control laws typically don’t apply to new tenants. Instead, they limit how much landlords can increase rent for existing renters, leaving landlords free to charge market rates when a new tenant moves in.
The analysts also said some renters would move less often.
Election Night results
The unofficial Election Night results for Prop. 33 and all the other ballot measures will be posted on https://electionresults.sos.ca.gov/returns/status. The California Secretary of State will continue to be process and count vote-by-mail, provisional, and other ballots after Election Night.
Results will be certified by December 13, 2024.
RELATED: Recent poll finds that 26% of California renters are against rent control
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