13 Oct How Is Proposition 21 Different Than The Last Rent Control Initiative That Was Rejected By Renters?
One of the biggest problems that landlords have been dealing with in California for over the last 25 years is rent control.
Our last ‘battle’ against rent control was fought in 2018 when Proposition 10, an initiative that sought to eliminate Costa Hawkins was not approved by voters. This didn’t stop pro rent control lawmakers, who crafted AB 1482 in 2019, a form of state-wide rent control because it makes it illegal for landlords to raise the rent more than 5% plus inflation in one year.
Governor Newsom signed the Tenant Protection Act (AB 1482), towards the end of last year and it became law on January 1st, 2020.
Sadly, some lawmakers still wanted more rent control than what AB 1482 offers, this is why Proposition 10 was created, the big question is how is it different than Proposition 10?
Proposition 10 Vs. Proposition 21
The biggest difference between Prop 21 vs. Prop 10 is in how the language of the bill is crafted.
Supporters of Proposition 21 claim that it puts guidelines on local rent controls, unlike Proposition 10, which would have repealed Costa Hawkins and enabled cities to craft their forms of rent control without having any limitations.
The reality is that rent control, is still rent control, and all we have to do to get an idea of how state-wide rent control will play out is to look to cities like New York, where rent control policies have failed over the years.
What Are The Specifics Of Proposition 21?
Voting yes on Proposition 21 would allow local governments to enact rent control on housing that was first occupied over 15 years ago. There would be some exceptions though including landlords who own no more than two homes with distinct titles or subdivided interests.
Voting no on Proposition 21 would keep Costa Hawkins in place and prohibit rent control on housing that was first occupied after February 1, 1995, and housing units with distinct titles, such as single-family homes.
Contact MW Real Estate Group
For more information about Proposition 21, or to speak with us about our property management services, contact us today by calling (213) 927-2117 or click here to connect with us online.