By Richard Ivanhoe, HANC Board
At our September meeting, we will have speakers for and against Proposition 10. Lorraine Petty of SDA (Senior and Disability Action) will speak in favor of the measure, while Todd David of HAC (Housing Action Coalition) will speak against the measure.
California Proposition 10 on the November ballot seeks to repeal the Costa-Hawkins Rental Housing Act. Legally, this measure would repeal sections 1954.50 through 1954.53 of the California Civil Code and add a new section 1954.54. The Voter’s Guide summarizes these changes as follows:
- Repeals state law that currently restricts the scope of rent-control policies that cities and other local jurisdictions may impose.
- Allows policies that would limit the rental rates that residential-property owners may charge for new tenants, new construction, and single-family homes.
- In accordance with California law, provides that rent-control policies may not violate landlords’ right to a fair financial return on their rental property.
In San Francisco, under Costa-Hawkins, rent control cannot apply to any housing built after 1979; rent control cannot apply to single-family homes; and rent control laws cannot regulate what a landlord charges to a new renter who first moves in. If Costa-Hawkins is repealed, cities and counties will be able to regulate rents for any housing, and can also limit how much a landlord may increase rents when a new renter moves in. The measure itself does not make any changes to local rent control laws—cities and counties would have to take separate action to change their local laws.
The section this Proposition would add to the California Civil Code is brief:
1954.54. (a) A city, county, or city and county shall have the authority to adopt a local charter provision, ordinance, or regulation that governs a landlord’s right to establish and increase rental rates on a dwelling or housing unit.
(b) In accordance with California law, a landlord’s right to a fair rate of return on a property shall not be abridged by a city, county, or city and county.
Proposition 10 is supported by The Coalition for Affordable Housing, the AIDS Healthcare Foundation, and ACCE (Alliance of Californians for Community Empowerment), along with the California Democratic Party, SEIU, the California Teachers Association, the California Nurses Association, and the American Federation of State, County, and Municipal Employees
It is opposed by the California Apartment Association, the California Rental Housing Association, and the No on Prop 10 PAC, along with the Republican Party, the California Chamber of Commerce, the State Building and Trades Council of California, the California Realtors Association, and the NAACP. As of August 28, opponents of the measure had raised more than twice as much as the proponents.
We anticipate that the discussion of this measure will be lively and informative.