California Proposition 33: Enabling stricter rent controls for California cities

About a dozen cities in Southern California have some form of local rent control. List contains Los Angeles, Inglewood and Santa Ana.

But a 1995 law limits the type of rent control that cities in California can impose. Proposition 33 aims to repeal that law and allow cities to implement stricter forms of rent control.

Official title on the ballot: Proposition 33 – Expands the authority of local governments to impose rent controls on residential properties. Initiative bill.

Understanding Prop. 33

The debate about rent control will always be controversial. Does it provide the necessary stability and ensure housing for vulnerable tenants? Tenant representatives argue? Or does it lead to a broader disinvestment in a city’s housing stock, resulting in less affordable housing overall, as many Economists argue?

This guide won’t solve that debate for you. But we do want to point out one thing that isn’t up for debate: rents are prohibitively high for many Californians.

About 56% of renters in the greater Los Angeles area are “burdened” by housing costs, accordingly the Harvard Joint Center for Housing Studies. That means they spend more than 30% of their income on housing, an amount considered unaffordable by government standards. Nearly a third spend more than half their income on housing, leaving little left for other necessities like food, healthcare and transportation.

Proponents of Prop. 33 blame state law for these burdens. They argue that housing would be cheaper if cities had more latitude to regulate rent increases. Opponents say rent control is a policy that doesn’t work. They think the state’s housing crisis requires other solutions.

The story behind it

Do you start to feel like you’re caught in a strange California election time loop, voting on the same issue year after year?

This is understandable. Similar measures have already been on the ballot twice, in 2018 And 2020Both times, California voters rejected it by a large majority.

Supporters believe that all good things come in threes. But opponents in the real estate industry are once again spending huge sums of money to bring down the measure.

How it would work

Proposition 33 would repeal the Costa-Hawkins Rental Housing Act, a 1995 state law that is the reason cities cannot impose rent control on certain types of housing.

If you rent a single-family home or condo in California, you are excluded from local rent control rulesthanks to Costa-Hawkins. Local rent control also does not apply to anyone living in an apartment built after February 1, 1995 (or even earlier in some cities, such as LA, where the cutoff date is October 1, 1978), again thanks to Costa-Hawkins.

Another important element of the Costa-Hawkins Act is the so-called “vacancy cancellation”. This provision allows landlords to demand whatever the market will pay if an apartment is vacant. Tenant representatives argue For this reason, long-term tenants – who are typically paying below market rates after years of capping rent increases – are often pressured to move out so that landlords can dramatically increase the rents on their apartments.

Proposition 33 would remove all of these restrictions and allow cities to implement stricter forms of rent control. The proposal itself would not impose new rent controls, but would allow cities to implement new forms of local rent control.

What supporters say

Like the two previous failed attempts to repeal Costa-Hawkins, Prop. 33 is supported by the AIDS Healthcare Foundation. The Los Angeles-based group’s president, Michael Weinstein, is a frequent supporter of housing-related measures.

Proponents of Prop. 33 argue that different parts of California have different housing regulations, but state law requires a one-size-fits-all approach. They say local governments should have more power to regulate the crushing rents that are driving people out of the state and putting many on the streets. on the verge of homelessness.

What the opponents say

Landlord associations, realtors and business representatives argue that voters have already soundly rejected similar proposals twice. They say expanding rent control could lower property values ​​and hurt small landlords and single-family homeowners who rent out their properties.

Opponents have also targeted the AIDS Healthcare Foundation, an organization they say should spend money on patient care rather than election measures, citing the organization’s track record as a landlord. The LA Times reported on the AIDS Healthcare Foundation’s problematic record in connection with Skid Row real estate.

What government analysts say

According to the California Legislative Analyst’s Office, Prop. 33 could result in “Losses in local property tax revenues of at least tens of millions of dollars annually due to a likely expansion of rent controls in some communities.”

Follow the money

Supporters led by the AIDS Healthcare Foundation have donated more than $16 million in support of Prop. 33.

Opponents – including the California Apartment Association, the California Association of Realtors and the Apartment Association of Greater Los Angeles – have raised more than $38 million to fight Prop. 33.

Stay tuned: The closer the election gets, the more campaign finance data we will have.

Further reading

• Rent Control Explained: The History of Controversial Tenant Protection in LA (LAist)
• How much can my rent go up now? Here’s your LA rent increase cheat sheet (LAist)
• California’s rent control will be voted on again this November – twice (CalMatters)

Before you read on, we’d like to briefly explain our mission here at LAist and why we’re so committed to helping you prepare for the election.

In the lead-up to this important election, our hard-working reporters and editors have spent hundreds of hours researching and writing these detailed guides and fact-based resources. We’ve invested this time because we want to help you vote confidently and make your community a better place.

But we cannot do this important work without your help. To remain independent, we rely on donations from readers like you. This is the only way our nonprofit editorial team can remain strong and accountable to you.

At a time when the need for local journalism is greater than ever, many newsrooms are facing cuts, including LAist. Member support — your support — is what will sustain a free press in Southern California.

LAist’s mission is to be here for you, so please join us with a donation to support our trusted local reporting. Step in now and choose to donate. Because that’s exactly what it is – a choice. A choice with consequences. If readers don’t choose to step in and donate, the future of fact-based news in Southern California won’t be so bright.

No matter what happens in the world, LAist will remain a voice you know and trust.

Thank you for your generous support.

Sincerely,

Make a contribution now to fund your local journalism

Continue