If you’ve been following our blog, you’re already aware of the efforts underway to impose rent control in California. Since our previous update, there have been some major new developments that I wanted to share with you:
1. The California ballot initiative has received enough signatures to get on the November ballot. It will be called Proposition 10, and if passed, it will repeal the Costa-Hawkins Act, which limits the kind of rent control policies that cities can impose. If Proposition 10 is passed, cities will be permitted to enact their own rent control initiatives. Currently, the law makes it illegal for cities to impose rent control ordinances on properties built after 1995. In addition, the Costa-Hawkins Act prohibits cities from imposing rent control on single-family homes, condos, and from regulating how much a landlord can charge in rent after a tenant moves out.
2. Backers of a rent control ordinance in the city of Long Beach have suspended their plans and are refocusing on a ballot initiative in 2020. It doesn’t look like rent control will be on the ballot in Long Beach this year.
If you own an investment property and would like to know how Proposition 10 may impact you, don’t hesitate to give me a call or send me an email. I would love to hear from you soon.