Proposition 21

Expands Local Governments' Authority to Enact Rent Control on Residential Property

initiative statute

Official Summary

Allows local governments to establish rent control on residential properties over 15 years old. Local limits on rate increases may differ from statewide limit.

Fiscal Impact: Overall, a potential reduction in state and local revenues in the high tens of millions of dollars per year over time. Depending on actions by local communities, revenue losses could be less or more.

• Official CA Voter Guide Summary ; text of proposed law

• Legislative Analyst Office Analysis

• Show Me The Money

  • support: $40,184,953 - AIDS Healthcare Foundation

  • oppose: $59,379,159 - CA Business Roundtable Issues PAC, real estate rental companies

• Ballotpedia Summary

• VotersEdge

Notes

Current rent control law is Costa-Hawkins Rental Housing Act which says rent control (limiting the increase in rent from one year to the next):

1. cannot apply to any single-family homes

2. can never apply to any newly built housing completed on or after February 1, 1995

3. cannot tell landlords what they can charge a new renter when first moving in

Change:

1. can apply to any property over 15 years old, not including single-family homes owned by people with two or fewer properties

2. cities and counties can limit how much a landlord can increase rents when a new renter moves in. Communities that do so must allow a landlord to increase rents by up to 15 percent during the first three years after a new renter moves in.

3. The measure requires that rent control laws allow landlords a fair rate of return.