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Controversial California Rent Control Measure Qualifies for November Ballot
A controversial rent control initiative has secured enough valid signatures to place it on the California ballot in November. If approved by voters, it would repeal the 1995 Costa-Hawkins Rental Housing Act, a 23-year-old state law that sets tight limits on all forms of rent control across California.
The Costa-Hawkins law gave landlords more control in setting rents, and the new law will shift power into the jurisdiction of cities and counties to change or set more restrictive policies. Currently, 15 California cities have some form of rent control.
Supporters of the initiative say stronger tenant protections will work to address the state’s housing crisis. More affordable housing would help low-income people and moderate-income earners afford to stay in California, predict supporters.
Opponents of the initiative, including the California Apartment Association and building industry representatives, say stronger rent control will deter new housing construction and decrease tax revenue for schools and other public services.
Analysis by California’s Legislative Analyst’s Office found that a repeal would likely lead to more rent control, lower rents and increased stability for tenants, but the wider state economic impact would also be great. It indicated new rental construction could decline, property owners could remove units from the market, and the value of housing could fall, which could lead to a decline in property taxes causing a drop in money for schools.
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