May 7, 2020
California Federation of Republican Women
Sue Blair, President
By Elaine Freeman, CFRW Legislative Analyst
CALIFORNIA LOCAL RENT CONTROL INITIATIVE (2020)
This measure allowed local governments to have rent control, except on (a) housing that was first occupied after 2/2/95 and (b) housing units with distinct titles such as condos, townhouses or single family. It would replace the Costa-Hawkins Rental Housing Act which was passed in 1995.
| A “yes” vote supports this ballot initiative to allow local governments to enact rent control on housing that was first occupied over 15 years ago, with an exception for landlords who own no more than two homes with distinct titles or subdivided interests. |
| A “no” vote opposes this ballot initiative, thereby continuing to prohibit rent control on housing that was first occupied after February 1, 1995, and housing units with distinct titles, such as single-family homes.
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This ballot measure would allow local governments to adopt rent control on housing units, except on
- housing that was first occupied within the last 15 years; and
- units owned by natural persons who own no more than two housing units with separate titles such as single family homes, condos and some duplexes or subdivided interests such as stock cooperatives and community apartment projects.
The measure would also establish a rent control on residential properties up to 15% over three (3) years from previous tenant’s rent above any increase allowed by local ordinance. In accordance with California law, it provides that rent-control policies may not violate landlords’ right to a fair financial return on their property.
HERE WE GO AGAIN
In 2018 the voters rejected Proposition 10 by 52% which would have allowed local governments to adopt rent control on any type of rental housing.SUPPORTERS
US Senator Bernie Sanders
US Representative Maxine Waters
ACCE Action
AIDS Healthcare Foundation
Democratic Socialist of America (Los Angeles)
Eviction Defense Network
National Lawyers Guild (Los Angeles)
In 2018 the voters rejected Proposition 10 by 52% which would have allowed local governments to adopt rent control on any type of rental housing.SUPPORTERS
US Senator Bernie Sanders
US Representative Maxine Waters
ACCE Action
AIDS Healthcare Foundation
Democratic Socialist of America (Los Angeles)
Eviction Defense Network
National Lawyers Guild (Los Angeles)
ARGUMENTS FOR:
- Michael Weinstein, President of ADS Healthcare Foundation “Of the 17 million renters in California the suffering is unabated, and this will allow help in the homelessness crisis.”
- Bernie Sanders, Former Vermont Congressman “This will allow cities to pass sensible limits on rent increases and protect families, seniors and veterans.”
ARGUMENTS AGAINST:
- Sid Lakireddy, President of the California Rental Housing Association “It has been proven time and again that rent control does not work. Voters overwhelmingly rejected the 2018 rent control initiative and this second attempt will also be rejected.”
AB 1482 (2019)
Governor Newson signed this bill which controls rents by capping annual rent increases at 5% plus inflation for tenants. It also requires that if a landlord must have a just cause, as defined in the law, to evict tenants that had occupied the rental for at least one year. The bill includes exemptions for housing built in the past 15 years and some single-family homes and duplexes. What this bill does is establish a state-wide rent control program without voter approval.FUNDING
Supporters this far have raised $3,808,973.55 plus another $4,742,490 from AIDS Healthcare. Those opposed have raised $1,314,445.59.
Governor Newson signed this bill which controls rents by capping annual rent increases at 5% plus inflation for tenants. It also requires that if a landlord must have a just cause, as defined in the law, to evict tenants that had occupied the rental for at least one year. The bill includes exemptions for housing built in the past 15 years and some single-family homes and duplexes. What this bill does is establish a state-wide rent control program without voter approval.FUNDING
Supporters this far have raised $3,808,973.55 plus another $4,742,490 from AIDS Healthcare. Those opposed have raised $1,314,445.59.
With the passage of AB 1482, this ballot measure seems redundant. The Governor has said California needs 3.5 million new housing units. Supply would be the way to stabilize rents. Builders are faced with high land costs, long government processing fees and, like any private sector business, expect a return on investment.
This measure does not incentivize the construction of new housing at a time when it is needed.
For more information click HERE.
