California’s Prop 33: Repealing Costa-Hawkins and the Debate Over Rent Control

California voters are gearing up to decide on Proposition 33, a measure that aims to repeal the Costa-Hawkins Rental Housing Act of 1995. This state law currently limits the ability of cities and counties to impose rent control on certain types of housing, including single-family homes and apartments built after 1995.

The repeal of Costa-Hawkins under Prop 33 would give local governments more flexibility to enact rent control measures, a move supported by various tenant and affordable housing groups. However, the proposition has also faced significant opposition, particularly from real estate and property management groups like Blackstone Inc. and Essex Property Trust. These groups have been criticized for their aggressive advertising campaigns aimed at swaying voters against Prop 33.

The debate over Prop 33 has become a contentious issue in local elections, including the District 3 race in San Francisco. Danny Sauter, a leading candidate in this district, recently lost the endorsement of the California Democratic Renters Council due to his opposition to Prop 33. Despite initially indicating support for repealing Costa-Hawkins, Sauter clarified that he does not support Prop 33 because it does not include provisions to accelerate new housing construction.

Supporters of Prop 33 argue that it is a crucial step in addressing the state’s housing affordability crisis by allowing cities to implement more effective rent control measures. They point out that the current law has hindered efforts to control exorbitant rental rates and prevent tenant displacement. On the other hand, opponents, including some candidates and real estate interests, argue that Prop 33 could stifle new housing construction and exacerbate the housing shortage.

The proposition has also garnered support from various labor unions, cities, and counties across California, including Los Angeles County, San Francisco County, and the City of Santa Monica. These entities believe that repealing Costa-Hawkins is essential for protecting renters and promoting housing affordability.