California ballot measure - housing & land use
Rental Affordability Act
Introduced by Michael Weinstein, Cynthia Davis, Jesse Brooks, Rene Christian Moya, Susan Hunter
- Amends state law to allow local governments to establish rent control on residential properties over 15 years old. Allows local limits on annual rent increases to differ from current statewide limit.
- Allows rent increases in rent-controlled properties of up to 15 percent over three years at start of new tenancy (above any increase allowed by local ordinance).
- Exempts individuals who own no more than two homes from new rent-control policies.
- In accordance with California law, prohibits rent control from violating landlords' right to fair financial return.
- Non-partisan researches at MIT estimate extreme rent control measures like this result in an average reduction in home values up to 20%. That's up to $115,000 in lost value for the average homeowner. Californians can't afford to take another hit with the economic collapse threatening their home values and life savings.
- Overall, a potential reduction in state and local revenues in the high tens of millions of dollars per year over time. Depending on actions by local communities, revenue losses could be less or more.
- Deeply flawed scheme that will increase housing costs and hurt California's economic recovery.
- A similar proposition was rejected by 60% of California voters in 2018.
- Does not address California's housing shortage and will instead make housing less available and less affordable, making the housing crisis even worse.
- Undermines statewide rent control law in the nation signed by Gov. Newsom and enacted just last year with no plan to build affordable and middle-class housing or deal with the increasing problem of homelessness.
- Takes away basic protections for homeowners and allows regulators to tell sing-family homeowners how much they can charge to rent out a single room. This will force millions of homeowners to be treated like landlords and subject to regulations and price controls enacted by unelected boards.
- Prop 21 allows local governments to establish extreme and permanent regulations on nearly all aspects of housing.
- Recommended Position: Oppose
Read the proposition. Click Here