The Rev Dr. Rick SchlosserIMPACT’s Recommendation: SUPPORT
This initiative would repeal the 1995 law known for its authors as the Costa-Hawkins Rental Housing Act. The law forbids local governments from creating rent control laws for any form of housing. With the increase of rents that respond to market forces such as movement into areas by high wage workers and displacement of lower-income tenants by new unaffordable rent increases, the move to end Costa-Hawkins and allow local government to find their own versions of rent control has gained new energies.
A Berkeley 2018 study found rent control does not stop the construction of new housing or affordable housing. Alternatively, a Brookings Institute study (2018) found that rent control substantially reduces the market price of regulated property and also neighboring housing even if not rent controlled. In both studies, they found there was enormous benefit to the renters if less benefit to owners. Long-term communities tended to form and be stable with vibrant retail and community services. On the other hand, rent controlled properties often were neglected by landlords. In San Francisco the rent control did not prohibit creation of high-market value housing. In Cambridge MA the removal of rent control raised property values. There is no universal outcome.
The issue is also divided by our ideas about housing. Is it shelter for individuals and families or a commodity to create wealth for owners? That question is compounded by the large amount of rental property owned by real estate speculators who bought vigorously during the COVID pandemic. It is further impacted by low-mobility people and high-mobility people, those who move often vs. those who do not.
Because this proposition leaves the decision up to local governments that will determine how much and what kinds of properties can be controlled, there is room for the voices of the citizens most impacted by the choices. That gives more opportunity for all sides to be heard so wise policy is made.
CA Secretary of State site: Arguments for and against Prop 33: https://voterguide.sos.ca.gov/propositions/33/index.htm