California Proposition 21, Local Rent Control Initiative, will be on the state’s ballot for the November 3, 2020 election as an initiated state statute.
- A “yes” vote for California Prop. 21 “supports this ballot initiative to allow local governments to enact rent control on housing that was first occupied over 15 years ago, with an exception for landlords who own no more than two homes with distinct titles or subdivided interests” (Ballotpedia, 2020).
- A “no” vote for California Prop. 21 “opposes this ballot initiative, thereby continuing to prohibit rent control on housing that was first occupied after February 1, 1995, and housing units with distinct titles, such as single-family homes” (Ballotpedia, 2020).
Enactment of Prop. 21 would allow cities to pass rent control measures on rental housing, providing that the housing is more than fifteen (15) years old. The ballot would also replace the Costa-Hawkins Rental Housing Act, passed in 1995, which allowed landlords to exercise rent control except on a) housing inhabited after February 1, 1995 and b) distinct-title housing such as single-family homes, condos, and townhouses. The Costa-Hawkins Rental Housing Act also allows landlords exercise of vacancy decontrol, a policy allowing rent price increases to market rates when a tenant moves out. Under California Prop. 21:
- Local governments would be permitted to exercise rent control on a) housing more than fifteen (15) years old and b) distinct-title housing units (i.e., single-family homes, condos, townhouses, etc.) owned by individuals who own no more than two (2) housing units with separate titles
- Local governments would be sanctioned to allow landlords to increase rental rates by 15% for the first three years following a vacancy
Thoughts of Supporters and Opponents to Prop. 21
SUPPORTERS of Prop. 21 say the measure would allow cities to put limits on rent increases, protecting California families from eviction by corporate landlords. Such limits would also work against gentrification and homelessness. Supporters of Prop. 21 include the California Democratic Party, Eviction Defense Network, and Michael Weinstein, president of the AIDS Healthcare Foundation.
OPPONENTS of Prop. 21 say the measure would be less profitable for housing construction, especially amid a time of massive housing shortage. Furthermore, opponents assert the measure would diminish revenue for city and state governments. Opponents of Prop. 21 include the California Apartment Association, Essex Property Trust and Prometheus Real Estate Group, and Governor Gavin Newsom.
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