With the cost of rent in many cities across California at an all-time high, efforts have been made to support ballot initiatives that would make it easier for cities to implement some form of rent control.
Whether you’re a real estate investor, a homeowner, or a renter, these ballot initiatives will have a major impact on housing, if passed.
On the state level, supporters have gathered a sufficient number of signatures for the initiative to be placed on the ballot this November. This initiative would repeal the 1985 Costa-Hawkins Rental Housing Act, which makes it illegal for cities to set rent caps on properties built after the year during which their respective city rent control laws were passed.
In Los Angeles, for example, the main rent control law is the Rent Stabilization Ordinance. This law, passed in 1979, restricts rent control on units built prior to October of 1978.
Costa-Hawkins also bars cities from passing rent control ordinances on condominiums and single-family homes. It also prohibits cities from reckoning how much a landlord can raise the rent after a tenant moves out, under a policy known as vacancy control.
Right now, at least 15 California cities have rent control policies. In the Los Angeles area, this includes the City of Los Angeles, West Hollywood, Beverly Hills, Thousand Oaks, and Santa Monica.
There are also efforts underway to implement some form of rent control in other cities throughout the state, including Long Beach, Inglewood, and Pasadena. In Long Beach, for example, the proposed initiative would cap rent hikes for most apartments built before 1995 at 5% or lower. It would also establish a citywide Rental Housing Board, which would be funded through fees charged to landlords.
If you would like more information about how these ballot initiatives may affect you, please reach out through our website at https://www.imcd.com/, give us a call, or send us an email. We look forward to hearing from you soon.