California Proposition 33 Rent-Control Measure Defeated at the Polls

Proposition 33, a statewide ballot measure that would have allowed stronger rent control laws in California, was rejected by voters on Tuesday. It would have overturned the longstanding Costa-Hawkins law, which bars localities from capping rent on vacant units, single-family homes and apartments built after Feb. 1, 1995. The Associated Press declared defeat for Prop 33 late Tuesday night.

The Los Angeles Times reported that the measure was put forth by the AIDS Healthcare Foundation (AHF), which bankrolled two similar initiatives in recent years. These were also rejected after the real estate industry outspent supporters, contending that the measures would thwart housing construction and worsen the affordability crisis, reported the Times.

The California Apartment Association (CAA) campaigned against Prop 33 for months prior to the Nov. 5 referendum. In a fact sheet posted to its website, CAA pointed out that the measure would supersede more than 100 state housing laws while giving local governments “the ability to potentially hinder affordable housing development.” Conversely, it would not provide funding for affordable housing or require such housing to be built.

“It’s time for Michael Weinstein and AHF to abandon efforts to trick Californians into backing their radical anti-housing agenda,” said Tom Bannon, CEO of CAA.

In a statement Wednesday, CAA noted that opposition to Prop 33 also came from major newspapers and organizations, including the California Chamber of Commerce, NAACP California/Hawaii State Conference and the California Council for Affordable Housing. Gov. Gavin Newsom and San Diego Mayor Todd Gloria also came out against Prop 33.

Bannon underscored the cost of AHF’s campaign to taxpayers.

“With all of the public money Michael Weinstein has wasted on his latest crusade to stop new affordable housing, AHF could have purchased more than 820,000 monthly doses of generic PrEP, paid the rent for 15,000 California households for a year, or repaired hundreds of times over its broken open elevator shaft in one of its many dilapidated properties, where low-income residents live in squalor,” he said.

“CAA has expressed its commitment to continuing work with state and local officials to address California’s housing challenges and to ensure housing remains accessible and affordable for all residents,” according to the statement.

The association is sponsoring Proposition 34, which appeared to have won statewide voter approval as of Wednesday morning. It would require organizations participating in the federal drug discount program, such as AHF, to use funds generated from the program for patient care rather than unrelated expenditures.

“For years, corporations have misused billions in taxpayer funds meant for patients to fund pet projects, wasting it on things like luxury condos, naming rights on sports stadiums and political campaigns,” said Bannon. “Millions of California voters have taken action to close the loophole that allows for this abuse. Our state has taken a stand against this blatant misuse of public dollars and voted to ensure these public healthcare dollars are used to protect patients and provide care.”