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Aaron Evans

California Proposition 33: The Future of Rent Control




As Californians prepare to vote in the 2024 election, Proposition 33 has emerged as one of the most hotly debated measures on the ballot. This proposition, if passed, would fundamentally alter the landscape of rent control in the state, granting local governments the authority to expand rent control regulations beyond the current limitations set by the Costa-Hawkins Rental Housing Act.

What is Proposition 33?

Proposition 33 is a proposed amendment to California's existing rent control laws. Currently, the Costa-Hawkins Act, which was enacted in 1995, restricts cities from imposing rent control on properties built after that year, as well as on single-family homes and condos. The law also allows landlords to raise the rent to market rates once a tenant vacates a unit.

Prop 33 seeks to repeal parts of Costa-Hawkins, allowing local governments to:

  • Implement rent control on newer buildings, potentially lowering the threshold from 1995 to a more recent year.

  • Apply rent control measures to single-family homes and condominiums.

  • Maintain rent caps on units even after a tenant moves out, preventing the sharp increases that often accompany new tenancies.

Supporters and Opponents

Supporters of Proposition 33 argue that the measure is a necessary step to address California’s ongoing housing crisis. They claim that rent control is one of the few tools available to keep housing affordable, especially in urban areas where rents have skyrocketed in recent years. Proponents also emphasize that local governments should have the flexibility to tailor rent control policies to their specific housing markets.

On the other hand, opponents of Prop 33 warn that expanding rent control could have unintended consequences, such as discouraging new housing construction and reducing the overall availability of rental units. They also argue that rent control could lead to a decline in property maintenance, as landlords may struggle to cover the costs of upkeep with restricted rental income.

The Impact on California Renters

For renters, Proposition 33 represents a potential lifeline in an increasingly unaffordable housing market. By expanding rent control, the measure could help stabilize rents and protect tenants from displacement. However, the broader effects on the housing market, including potential impacts on the supply of rental units and overall housing affordability, remain uncertain.

What’s at Stake?

The outcome of the vote on Proposition 33 will have significant implications for both tenants and property owners across California. If passed, the measure could signal a shift towards stronger tenant protections and more aggressive local control over housing policy. However, it could also provoke legal challenges and create new complexities in the already fraught debate over how to address the state’s housing crisis.

As Election Day approaches, voters will need to weigh the potential benefits of expanded rent control against the possible risks, making Proposition 33 one of the most important measures to watch in 2024.

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