Proposition 21
Proposition 21: Expands local government’s authority to enact rent control on residential property.
Description:
The ballot measure would replace the 1995 Costa-Hawkins law. Before Costa-Hawkins, local governments were allowed to enact rent control so long as landlords received just and reasonable rents. Costa-Hawkins mandated some rent control exemptions, such as for housing that was first occupied after February, 1995; and all condos, townhouses, and single-family homes were also exempt from rent control.
The ballot measure would continue to allow local governments to adopt rent control, but the exemptions would change. Instead of using 1995 as the cut-off, it would exempt housing older than 15 years; and the exempted single-family homes, condos, and duplexes would need to be owned by natural persons (not corporations) who own no more than two housing units.
Under Costa-Hawkins, landlords are allowed to increase rent prices to market rates when a tenant moves out. Proposition 21 would cap initial rental rates after a vacancy to no greater than 15 percent of the previous rent. Proposition 21 would continue to prohibit rent control from violating landlords’ right to fair financial return.
Pro: Median rents in California are higher than in any other state. According to the National Low-Income Housing Coalition, a Californian earning minimum wage would have to work 92 hours a week to afford renting a average one-bedroom apartment. Proposition 21 would allow cities to pass effective rent controls and prevent thousands of unwarranted evictions. Currently, cities are prohibited from imposing rent controls on vacant apartments. Even in cities with otherwise strong rent control, when an apartment becomes vacant, the landlord can raise the rent to whatever the market will bear. This means that some landlords will got to great lengths to get rid of long-term tenants who pay less than market rate. Proposition 21 wouldn’t impose new rules on cities; it would just allow local governments to pass stronger tenant-protection laws.
Con: According to the National Taxpayers Union, if approved, Proposition 21 will hurt renters by discouraging private sector builders from bringing more affordable housing units to market. The solution to lowering rental prices won’t come from more government mandates and rules, but from reasonable changes to strict zoning laws, high building costs, and lengthy permitting processes. According to Governor Gavin Newsom, California has already passed the nation’s strongest rent caps and renter protections in the nation - as well as short-term eviction relief. But Proposition 21 runs the all-too-real risk of discouraging availability of affordable housing in our state.
Our Opinion: We are concerned about the lack of affordable housing in California and support the option of strong rent control laws in communities that want them. That is why the AV Housing Association endorses Proposition 21.
More information on Proposition 21 can be found on BallotPedia: https://ballotpedia.org/California_Proposition_21,_Local_Rent_Control_Initiative_(2020)