Prop 21 Will Change Rental Housing in California
As you may know, there's a new ballot proposition that mirrors 2018's Proposition 10 and is even worse for California's rental housing industry. Proposition 21, known as the "Rental Affordability Act", will drastically expand California's rent control laws by repealing the protections we currently have under Costa-Hawkins.
Recently, Governor Newsom announced his opposition to Proposition 21, the housing freeze initiative on the November ballot. "In the past year, California has passed a historic version of statewide rent control - the nation's strongest rent caps and renter protections in the nation - as well as short-term eviction relief," Newsom stated. "But Proposition 21, like Proposition 10 before it, runs the all-too-real risk of discouraging availability of affordable housing in our state."We at the Apartment Association of Greater Los Angeles (AAGLA) strongly OPPOSE PROPOSITION 21, the RENT CONTROL ballot initiative, and we have launched a statewide opposition campaign to defeat this latest threat to our property rights. In addition, we have "VOTE PROP. 21" lawn signs for all of our AAGLA members to ensure the voice of reason and common sense is heard and that your property rights and property values are preserved. We ask and encourage all AAGLA members and all property owners to display these signs on their lawns to help spread the word and help us defeat this ballot initiative that will create chaos in our housing marketing and reduce property values. This ballot initiative is an extremely dangerous threat to all landlords! If passed:
- Eliminates Costa-Hawkins protections on almost all housing units - YOUwon't be able to increase rent to going market rates if this initiative passes!
- Authorizes cities or counties to enact vacancy control - YOU could only increase rent on vacant units by 15% over 3-years following vacancy and then fall under local rent caps.
- Allows regulation of single-family homes and condominiums - if you own more than 2 properties, your rental property becomes regulated OR if you do not own your single family home or condominium rental property as a "natural person" your property will fall victim to rent control - family trusts, LLCs and corporations are not exempt under this law.
- Decimate property values - Similar laws passed in New York State caused values of rental properties to drop 30% to 40% IMMEDIATELY.
- Reduce housing supply by forcing rental property owners out of business.
- Gives unelected bureaucrats unlimited power to add fees on housing - hundreds of rent control boards will "spring up" across California.
- Add tens of millions in new costs to local governments to administer local rent regulations - YOU will pay for these increased costs through additional fees and taxes.
- All properties older than 15 years will be subject to local rent control laws and lower rent caps - A.B. 1482 would be cancelled.
- Makes California's housing crisis EVEN WORSE! If this ballot initiative passes, we will ALL be forced out of the rental housing business!
Bell Property Management LA is working hard for our owners, 24x7. Protecting and serving large assets across LA & Orange Counties. To have your properties professionally cared for, call our office today, 800-341-3281 and speak with Broker Brian. We are currently accepting new & existing, large multifamily developments.
