Talk of the Bay host Len Beyea leads a discussion about housing affordability and, in particular, the rent control initiative on California’s November ballot, Proposition 33. Participants include Lira Filipini, Rick Longinotti, and Lee Brokaw.
Proposition 33 on the November ballot would replace the 1994 Costa Hawkins act with the following: “The state may not limit the right of any city, county, or city and county to maintain, enact or expand residential rent control.” The Costa Hawkins act restricted local government rent control to only apply to apartment buildings built prior to 1994, and required that rent controls be lifted whenever an apartment changed tenants or a property was sold. As a result, opponents of rent control can point to cities that have it and claim that it does not work. It is so limited, that it applies to less than half of all rentals in those cities and counties where it is in effect, and then only temporarily, until there is a change of owner or tenant. Proposition 33 would lift those restrictions, but does not create rent control. Whether and how to implement rent control would still be left up to individual cities and counties.
One economist has claimed that rent control has negative impacts on rental housing. Meanwhile, 32 other economists submitted a letter to the Biden administration in favor of implementing national rent control. The “No” campaign has already outspent the “Yes” campaign by a ratio of 3 to 1. More than 90% of contributions to the “No” campaign come from the California Apartment Association and the California Association of Realtors.
