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Prop 10 Could Expand Local Rent Control in California

When they cast their ballots on Proposition 10 in November, California voters could open the door to a dramatic expansion of rent control across the state.  The current state law governing local rent control, known as the Costa-Hawkins Act, allows local governments to adopt only a narrow range of rent control measures. The three primary restrictions that cities and counties must follow are: (1) local rent control laws can restrict only apartments that were constructed before February 1995, (2) local ordinances must permit “vacancy decontrol,” which allows landlords to raise rents to market levels once a tenant moves out and a new tenant moves in, and (3) rents on single family homes and condominiums cannot be restricted.

Proposition 10 would repeal the Costa-Hawkins Act and give cities and counties explicit authority to adopt local rent control laws. The only restriction in the initiative is that local rent control laws cannot abridge a landlord’s right to a fair rate of return on its property.

Meyers Nave Principal Jon Goetz published an article in Western Real Estate Business magazine that explains what would happen if the initiative passes. Please click here to read his article.