Prop 33

Expands Local Governments' Authority to Enact Rent Control on Residential Property

initiative statute

Official Summary

Repeals Costa-Hawkins Rental Housing Act of 1995, which currently prohibits local ordinances limiting initial residential rental rates for new tenants or rent increases for existing tenants in certain residential properties.

Fiscal Impact: Reduction in local property tax revenues of at least tens of millions of dollars annually due to likely expansion of rent control in some communities.

• Official CA Voter Guide Summary ; text of proposed law

• Legislative Analyst Office Analysis

• Show Me The Money

  • support: $47,664,137 - CA Nurses Assoc.; CA Alliance for Retired Americans; Mental Health Advocacy; Coalition for Economic Survival; TenantsTogether

  • oppose: $115,728,327 - CA Council for Affordable Housing; Women Veterans Alliance; CA Chamber of Commerce

• Ballotpedia Summary

• Vote 411

Notes

About one-quarter of Californians currently live in communities with local rent control.

In addition to local rent control laws, a state law prevents most landlords from increasing a tenant’s rent by more than 5 percent plus inflation (up to a total of 10 percent) in a year. This law lasts until 2030.

Currently Costa-Hawkins Rental Housing Act (Costa-Hawkins), limits local rent control laws in three main ways.

1. rent control cannot apply to any single-family homes.

2. rent control cannot apply to any housing built on or after February 1, 1995

3. rent control laws rent control can only limit how much landlords increase rent for existing renters

Proposition 33 eliminates Costa-Hawkins so cities and counties can enact laws to control rents for any housing and can limit how much a landlord may increase rents when a new renter moves in.