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California Prop 33: What You Need to Know About the Repeal of Costa-Hawkins and Its Impact on Renters
This November, California voters will face a significant decision that could reshape the rental housing landscape across the state: Proposition 33, a measure that proposes the repeal of the Costa-Hawkins Rental Housing Act of 1995. If passed, this initiative would allow local governments to expand rent control, potentially altering rent regulations in many communities. Whether you're a tenant, landlord, or just someone concerned about the housing crisis in California, understanding what Prop 33 means is essential.
Here’s a breakdown of what this proposition could mean for renters in Los Angeles and beyond, without all the political noise—just the facts to help you make an informed decision.
What Is Costa-Hawkins and Why Does It Matter?
To understand Proposition 33, it’s crucial to first know about the Costa-Hawkins Rental Housing Act, which has been in place since 1995. This law currently limits how cities can impose rent control by:
Prohibiting rent control on properties built after 1995 (or an earlier date set by some cities).
Exempting single-family homes and condos from rent control.
Banning vacancy control, which means landlords can raise the rent to market rates when a tenant moves out.
What Would Prop 33 Do?
If Proposition 33 passes, it would repeal Costa-Hawkins, giving local governments the ability to:
Implement rent control on more types of properties: This could include single-family homes, condos, and newer buildings that are currently exempt under Costa-Hawkins.
Limit rent increases between tenants: Cities could prevent landlords from significantly raising the rent after a tenant moves out, keeping the unit at a more affordable rate for future renters.
Essentially, Prop 33 would allow cities and counties across California to set their own rent control policies without the restrictions imposed by Costa-Hawkins.
What Are the Potential Impacts of Prop 33?
For Renters:
More Rent Control Options: If Prop 33 passes, tenants in cities that choose to expand rent control could see stricter limits on rent increases, providing greater stability and affordability.
Protections for Long-Term Tenants: Rent control could extend to more properties, offering security for renters in previously exempt buildings, like newer apartment complexes and single-family homes.
However, some experts suggest that expanding rent control may have unintended consequences, such as reducing the availability of rental housing if landlords are discouraged from renting out their properties or building new units.
For Landlords:
New Rent Control Regulations: Landlords might face new rules that limit how much they can charge for rent in a wider variety of properties. This could affect their ability to adjust rents to market rates when a tenant leaves.
Potential Impact on Property Values: Rent control measures could lead to a decrease in property values, particularly for single-family homes and condos that would be newly subjected to rent control.
For Local Governments:
Decreased Property Tax Revenues: The fiscal impact of Prop 33 is expected to result in a reduction in local property tax revenues—estimated at tens of millions of dollars annually—due to the potential decline in property values if rent control expands. This could impact funding for local services, such as schools and public safety.
Who Supports and Opposes Prop 33?
As with any significant policy change, there are strong opinions on both sides of the debate.
Supporters of Prop 33 argue that:
Repealing Costa-Hawkins would allow cities to address the growing housing crisis by expanding rent control, offering much-needed protection to tenants struggling with skyrocketing rent prices.
Tenant advocacy groups believe that this change will help keep families in their homes and prevent displacement in cities with high rents.
Notable Supporters:
California Nurses Association
California Alliance for Retired Americans
Mental Health Advocacy
Coalition for Economic Survival
TenantsTogether
Opponents of Prop 33 argue that:
Expanding rent control could discourage new housing construction, worsening the housing shortage and making it even harder to find affordable housing in the long term.
Landlord groups and business associations believe that it could lead to reduced property values and limit the ability of property owners to maintain their buildings or make necessary upgrades.
Notable Opponents:
California Council for Affordable Housing
Women Veterans Alliance
California Chamber of Commerce
What Happens If Prop 33 Doesn’t Pass?
If Proposition 33 does not pass, the Costa-Hawkins Rental Housing Act will remain in place, meaning cities will continue to face restrictions on how they can implement rent control. Rent control would still only apply to buildings built before 1995 (or earlier, depending on the city), and single-family homes and condos would remain exempt from these regulations.
Final Thoughts: What Should Renters Consider?
If you’re a renter worried about rising rents or a potential homeowner concerned about property values, Proposition 33 could have significant implications for housing in California. This decision comes at a time when many cities are grappling with housing affordability and the long-term impacts of the COVID-19 pandemic on renters and property owners alike.
The choice on Prop 33 will ultimately shape how local governments can respond to housing challenges and whether expanded rent control becomes a tool for protecting tenants—or a barrier to new housing development.
As always, The Tenure View is here to provide you with the facts, so you can make an informed decision at the ballot box this November.
Make your voice heard—whether you're voting for rent control or against, understanding the stakes is key. Stay informed, stay empowered, and let’s build a better housing future together.
Would you like more information on how this proposition might affect your specific situation? Let us know—we’re here to help you navigate LA’s complex housing market!
