No on Proposition 33
Repeal State Regulations on Rent Control
What is it?
Proposition 33 will repeal the "Costa Hawkins Rental Housing Act" act, which established statewide guidelines on rent control.
Costa Hawkins is widely considered an essential part of sensible rent control policy. By limiting the year when a building becomes eligible for rent control, it prevents cities from discouraging homebuilding by setting infeasible rent control requirements on brand new homes. It also encourages landlords to renovate their properties after a tenant moves out by allowing them to set new rents in order to offset renovation costs.
Proposition 33 will eliminate these guard rails and allow cities to set their own laws without oversight from the state.
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Fiscal impacts
Prop 33 will have mostly negative effects on city tax revenues, personal rent expenditures, and the availability of rental homes. The nonpartisan Legislative Analyst's Office estimates that renters in market-rate housing may pay more, some renters already in rent-controlled housing may pay less, fewer homes will be available to rent, local property tax revenues will decline by "at least tens of millions of dollars annually", and local government costs may increase.
It is also likely to reduce rental homebuilding activity in cities and counties where new construction is not temporarily exempted from rent control laws, further deepening the housing shortage and raising rental rates for everyone. If the decline in rental building is not offset by a corresponding increase in owner-occupied housing like condos, the measure could also lower wages and total employment in the construction sector.
- See "Fiscal Effects" section of the Legislative Analyst's Office report (PDF)
Why is this on the ballot?
According to Article II, Section 8 of the California Constitution, citizens may introduce statutes (laws) by collecting signatures (5% of the votes cast in the most recent Governor's race). The statute must then be approved by voters with a simple majority of 50% + 1.
Prop 33 is being pushed by Michael Weinstein, president of the AIDS Healthcare Foundation (AHF). It is his third effort to end statewide rent control regulation after two failed attempts in 2018 and 2020. Weinstein has redirected $11.6 million from the AIDS Healthcare Foundation to fund the PAC supporting this measure, taking away critical funds from patient care.
If you're wondering why an AIDS healthcare organization is running a ballot measure about housing, see Proposition 34 below.
- Proponent: AIDS Healthcare Foundation
- Placed on ballot by: Paid signature gathering
As of July 29, 2024 there is a well-organized opposition to this measure. A bi-partisan coalition of housing advocates, Democratic and Republican lawmakers including Berkeley's Democratic Assemblymember Buffy Wicks, the Northern California Carpenter's Union, the California Apartment Association, and California YIMBY have come together to oppose Prop 33.
Why vote No?
Prop 33 will make rent in San Francisco even more expensive.
Prop 33 is a Trojan Horse. It lets cities impose new rules which will stop all new homebuilding. This anti-housing act allows cities like Beverly Hills and Huntington Beach to pass anti-housing policies without state oversight, making new homes impossible to build. When cities across the state limit homebuilding, it raises costs for all of us.
The nonpartisan Legislative Analyst's Office estimates that renters in market-rate housing may pay more, fewer homes will be available to rent, local property tax revenues will decline by "at least tens of millions of dollars annually", and local government costs may increase. And it is likely to reduce rental homebuilding activity in cities and counties where new construction is not temporarily exempted from rent control laws, further deepening the housing shortage and raising rental rates for everyone.