Costa-Hawkins Repeal on November Ballot – It’s Complicated!

nine-county-coalition – excerpt

California voters will see Proposition 10 on their ballots on November 6, 2018.  Proposition 10, The Affordable Housing Act of 2018, a voters’ initiative, aims to repeal the Costa-Hawkins Rental Housing Act of 1995.  Costa-Hawkins was sponsored by Senator Jim Costa (D-Fresno) and Assembly Member Phil Hawkins (R-Bellflower), became Assembly Bill 1164 which passed both chambers of the California Legislature, and was signed into law by then California Governor Pete Wilson.

Proposition 10 is the latest battle in the ongoing war between California renters and landlords.  The 1970s were plagued with “stagflagtion,” stagnant wages in the midst of inflation.  In response, cities passed rental controls in an attempt to keep housing prices down.  Then came Proposition 13 in 1978, and the hope that landlords would share their property tax savings with renters thus significantly lowering rents.  When that did not happen, renters started to organize in earnest. But so did landlords, and the result was Costa-Hawkins, which prohibits imposing rent controls on new construction, single-family homes, condominiums, and vacant housing units.  Controls were thus limited by Costa-Hawkins to rental buildings in existence at the time cities passed their rent control ordinances, and limited to the period of time each tenant occupies each unit.

The animosity between renters and landlords over rent control is especially remarkable because at present there are only 15 municipalities (cities and towns) out of California’s 482 with some form of rent control….

Although the populous progressive coastal cities in California will likely expand rent control should the repeal of Costa-Hawkins occur, they could also provide sufficient incentives to avoid bringing construction of rental housing “to a halt.” Dialing down the current focus on construction might actually be helpful to residents not happy with all the stacking & packing going on. Hopefully, city leaders will comment between now and November.

Voters opposed to state-wide mandates such as the recently demised Senate Bill 828, could consider capitalizing on all the talk about repealing Costa-Hawkins in order to bring decisions on rent control back to the cities. The downside of that approach is that if those same voters are also opposed to expansion of rent control, it will take some effort to prevent expansion in their cities… (more)

Please read this most excellent article that explains the facts of how we got here and where we might be going with and without the repeal of Costa-Hawkins. We appreciate authors who take the time to show us the facts and let us decide after careful deliberation.

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