California Proposition 21
Here we go again. Voters will soon decide on a ballot measure for the second time in two years that would let California cities establish rent control on housing.
Proposition 21 would revise a 25-year-old law that blocks local governments from freezing rent prices on buildings constructed after Feb. 1, 1995 and single-family homes and condos. The Costa-Hawkins Rental Act, also prohibits local jurisdictions from dictating new rent prices once a unit is vacated.
Proposition 21 includes an exemption for small landlords who own up to two single-family homes.
The law also wouldn’t apply to new homes constructed in the last 15 years.
And owners could still raise rent prices by 15% ( for repairs) once a tenant leaves.
The ballot summary is as follows:
“ Amends state law to allow local governments to establish rent control on residential properties over 15 years old. Allows local limits on annual rent increases to differ from current statewide limit.
Allows rent increases in rent-controlled properties of up to 15 percent over three years at start of new tenancy (above any increase allowed by local ordinance).
Exempts individuals who own no more than two homes from new rent-control policies.
In accordance with California law, prohibits rent control from violating landlords’ right to fair financial return