Proposition 33, set to appear on the November 5, 2024 ballot in California, aims to significantly alter the state's rent control policies. The measure seeks to repeal the Costa-Hawkins Rental Housing Act of 1995, which currently restricts local governments from enacting certain types of rent control ordinances.
1. What Does Proposition 33 Propose?
If Proposition 33 passes, local governments will gain the authority to impose rent control on any type of housing, including single-family homes and properties built after 1995. This means that cities and counties can decide whether to limit initial residential rental rates for new tenants or restrict rent increases for existing tenants in these properties.
Currently, state law prohibits local ordinances from limiting initial residential rental rates for new tenants or rent increases for existing tenants in certain residential properties. Proposition 33 would eliminate these restrictions, allowing local governments to expand their rent control measures as they see fit.
2. The Impact on Renters and Landlords
Proponents of Proposition 33 argue that the measure is necessary to address California's severe housing crisis. They contend that high rents are a major issue in the state, with renters typically paying about 50% more for housing than their counterparts in other states. By allowing local governments to impose stricter rent controls, proponents believe that more people will be able to afford their homes and avoid displacement.
However, opponents of Proposition 33 raise concerns about its potential long-term effects. They argue that expanded rent control could discourage landlords from building new rental units, exacerbating the existing housing shortage. This could lead to higher rents overall as demand for housing increases while supply remains limited.
Additionally, opponents point out that eliminating the Costa-Hawkins Act could lead to reduced property values and lower property tax revenues for local governments. This reduction could be substantial, potentially affecting public schools and other local services that rely on property taxes.
3. Historical Context and Previous Attempts
Proposition 33 is not the first attempt to expand rent control in California. Similar measures have appeared on the ballot before, including in 2018 and 2020, but they were both rejected by voters. Despite these previous defeats, proponents remain hopeful that this year's measure will pass.
The 'Yes on 33' campaign emphasizes that rent control has worked effectively in other parts of the United States since 1919 to keep people in their homes. They argue that California's 17 million renters need relief from skyrocketing rents and that stable communities benefit both homeowners and taxpayers.
On the other hand, opponents argue that Proposition 33 would freeze construction of new housing and effectively reverse dozens of new state housing laws. They contend that this could drive up rents across the state and make it even harder for people to find affordable housing.
4. Key Supporters and Opponents
Proposition 33 is backed by several organizations known for tenant advocacy, including the AIDS Healthcare Foundation and TenantsTogether. These groups argue that rent control is essential for protecting tenants from unaffordable rents.
In contrast, opponents include organizations like the California Council for Affordable Housing, the Women Veterans Alliance, and the California Chamber of Commerce. These groups argue that expanded rent control would harm housing supply and increase costs for both landlords and local governments.
The fiscal impact of Proposition 33 is significant, with state analysts predicting a reduction in local property tax revenues of at least tens of millions of dollars annually due to likely expansion of rent control in some communities.
Ultimately, the outcome of Proposition 33 will depend on how California voters weigh the competing arguments about its potential effects on housing affordability and supply.
Learn More at Direct Post
For more information on Proposition 33 and its implications for California's housing market, visit Direct Post.
