What is Costa-Hawkins?
- For landlords, and truthfully for the entire economy, Costa-Hawkins is a very good law.
- In 1995, the State of California enacted a law that stopped cities from imposing rent control on new construction, single family homes, condominiums and townhomes.
- It prevented municipalities from instituting rent control for buildings constructed after 1995.
- If a rent control ordinance exempted buildings constructed prior to February 1995, they cannot change the law and include them under rent control.
- It allowed for vacancy decontrol. Landlords can raise rents, if the unit is vacated.
- It afforded protection against third parties getting protection under rent control.
What Happens if Costa–Hawkins is Repealed?
- It will allow single family homes, condominiums and townhomes to be subject to rent control.
- It will allow buildings constructed after 1995 to be subject to rent control.
- Municipalities will be able to restrict vacancy decontrol.
- Third parties who occupy units will be afforded protection if rent is accepted.
- All and any California cities will be able to institute rent control for ALL rental units.
Is the Costa–Hawkins Repeal Going to be on the November Ballot?
Radical tenant activists needed to get 365,880 signatures for the bill to be put on the November ballot. They were able to gather about 600,000 signatures, which is almost double the amount they needed. This further proves how much support there is for Costa-Hawkins being repealed. All property owners need to make a concerted effort to VOTE NO on this proposition and work and donate money toward its defeat!
What are the Possible Outcomes for Rent Control
Laws if Costa–Hawkins is Repealed?
With regards to many California cities, I envision that units constructed after 1995, single-
family homes, condominiums and townhomes will be subject to rent control. I do not expect that all of the cities will take the extreme action of preventing vacancy decontrol, but many will.
- Rent control laws in California are only going to get stricter.
- It is unlikely that all California cities would choose to go to the absolute extreme with vacancy rent control restrictions, but they will certainly expand rent control laws to include buildings that are currently not under control.
- If we do not defeat this ill-conceived and misleading proposition, the worst is yet to come! WE MUST WIN!
VOTE NO on The Affordable Housing “Destruction” Act – Prop. 10!