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Prop 33 vs. The Current Debate on Rent Control in LA: What Renters Need to Know
As the November elections approach, one of the most debated measures on the California ballot is Proposition 33—a proposal that could dramatically reshape the state's rental housing market. If passed, Prop 33 would repeal the Costa-Hawkins Rental Housing Act, giving local governments the power to expand rent control. For renters in Los Angeles, this could mean big changes, but opinions on the measure are deeply divided. Here’s what you need to know about the ongoing debate, what’s at stake, and how it could impact you as a renter.
What is Prop 33?
Proposition 33 proposes the repeal of the Costa-Hawkins Rental Housing Act, which has been in place since 1995. Costa-Hawkins restricts rent control in California in three major ways:
Excludes newer buildings: Properties built after 1995 (or earlier, depending on the city) are exempt from rent control.
Single-family homes and condos: Costa-Hawkins prevents these properties from being subject to rent control.
Vacancy control: Under Costa-Hawkins, landlords are allowed to raise rents to market rates once a tenant moves out, which is currently banned under vacancy control.
If Prop 33 is approved, it would repeal these restrictions, giving cities and counties the ability to create and expand rent control on more types of properties, including newer apartments, condos, and single-family homes. Additionally, cities could prevent landlords from significantly raising rents between tenants, which some argue would keep rental prices stable and affordable for future renters.
Supporters: A Push for Stronger Tenant Protections
Supporters of Prop 33 argue that repealing Costa-Hawkins is a crucial step in addressing California's growing housing affordability crisis. With rents continuing to rise and displacement becoming a reality for many, expanding rent control could provide much-needed relief to tenants who are struggling to stay in their homes.
Several tenant advocacy groups, including the California Nurses Association, the Coalition for Economic Survival, and TenantsTogether, support the measure, emphasizing that rent control is a way to prevent homelessness and stabilize communities.
Councilmember Hugo Soto-Martinez, a supporter of the proposition, recently stated, "It's time to modernize our rent control laws. We need to protect renters from skyrocketing rents, particularly in cities like Los Angeles, where the housing crisis continues to deepen."
For renters in Los Angeles, the prospect of stricter rent control could mean greater security, especially as more properties would fall under rent control protections. Currently, only buildings built before 1978 are covered by rent stabilization in LA, but Prop 33 could extend these protections to thousands of more units.
Opponents: Fears of Unintended Consequences
On the other side of the debate, opponents of Prop 33 warn that expanding rent control could have negative long-term effects on California’s housing market. Critics argue that while rent control offers short-term relief for renters, it can also discourage new housing development and reduce the availability of rental units.
The California Apartment Association (CAA), one of the measure's leading opponents, expressed concerns that Prop 33 would lead to a stagnant rental market, lowering property values and ultimately discouraging property owners from building new housing. They argue that limiting the ability to raise rents will make it harder for landlords to maintain and upgrade properties.
In a recent statement, the CAA noted:
“Prop 33 would lower property values and discourage new housing development, aggravating the housing shortage and leading to a stagnant rental market. It threatens to disrupt market dynamics and exacerbate the housing crisis.”
Landlord groups and business associations also point to the fact that voters previously rejected similar measures in 2018 and 2020, signaling ongoing concerns about expanding rent control without addressing California’s underlying housing shortage.
The LA City Council’s Position
The Los Angeles City Council recently weighed in on the debate, officially backing Prop 33 in a 8-3 vote. Councilmembers like Nithya Raman and Hugo Soto-Martinez argue that repealing Costa-Hawkins would give LA the tools to address the city’s housing crisis by expanding rent control and protecting tenants from displacement.
However, not all council members are in favor. John Lee, Imelda Padilla, and Traci Park voted against the resolution, with some expressing concerns that expanded rent control could have unintended consequences for landlords and future housing developments.
The City Council’s resolution serves as a formal endorsement of Prop 33, but ultimately, the decision will be made by California voters in November.
What’s at Stake for LA Renters?
For renters, the stakes are high. If Prop 33 passes, rent control could expand across more properties, offering increased protection against sudden rent hikes and displacement. However, opponents warn that such measures could backfire, leading to fewer rental units being available in the long run and discouraging the construction of much-needed new housing.
Here’s what you should consider as a renter:
Greater Rent Control Protections: If passed, Prop 33 could provide stricter rent controls in cities like Los Angeles, offering more stability for renters.
Potential Impact on Housing Availability: Expanding rent control could lead to fewer available rental units if landlords are discouraged from renting out properties or developing new ones.
Local Impact: Prop 33 would allow each city to decide its own rent control policies. While Los Angeles may quickly adopt expanded rent control, other cities might take a more cautious approach.
Final Thoughts: What Should Renters Watch for in the Debate?
As Prop 33 makes its way to the ballot, it’s important for renters to stay informed about the arguments on both sides of the debate. While expanded rent control offers potential benefits, such as more affordability and stability, it’s crucial to also consider the potential unintended consequences for housing availability and development.
The future of California’s rental market is on the line, and LA renters will need to carefully weigh how Prop 33 could impact their housing situation, both now and in the future.
Stay tuned to The Tenure View for the latest updates on Prop 33, tenant rights, and housing developments in Los Angeles. We’re here to make sure you have all the information you need to navigate LA’s housing landscape.
