A Bay Area regional transportation agency has approved an incentive program that could encourage cities and counties to adopt rent control and just-cause eviction rules.

In partnership with a coalition of housing, business, and economic development groups, the California Apartment Association advocated for changes to limit the program’s reach.

At its Feb. 25 meeting, the Metropolitan Transportation Commission, or MTC, adopted the c Program. Through the advocacy of CAA and the coalition, the framework that was adopted reduced the amount of available funding under the program from $820 million to $45 million.

For rental housing providers, the vote is a reminder that agencies without any direct housing mandate or legislative authority can try to push for rent control by conditioning funding for infrastructure projects on cities adopting rent control and other anti-housing measures.

CAA and coalition partners opposed tying transportation funding to housing policy mandates and pushed for revisions throughout the process.

“These housing protection policies fail to create housing near transit, and they fail to reduce emissions — the two main goals of the TOC (Transit-Oriented Communities Incentive) program,” said Jennifer Rizzo, CAA’s vice president of local public affairs, in testimony before the commission.

The final framework includes several changes sought by the coalition, including:

  • Clarifying language that program adoption by cities is voluntary.
  • Providing credit for existing county-level housing programs.
  • Reducing incentive funding to $45 million — down from the initial proposal of $820 million.
  • Clarifying that adoption by a city or county depends on local feasibility and analysis.
  • Including a disclaimer that the resolution should not be considered an endorsement of any particular housing policy.

Impact on landlords

The incentive program applies across the nine-county Bay Area: Alameda, Contra Costa, Marin, Napa, San Francisco, San Mateo, Santa Clara, Solano and Sonoma. Impacts are expected to vary by jurisdiction based on whether local governments pursue program-linked transportation funds.

In jurisdictions that pursue program-linked transportation funding, local officials will determine how local and county policies align with the program’s scoring criteria. The commission scores each jurisdiction based on how many housing-protection policies are adopted. They can choose from a menu of 11 options, including just-cause eviction, tenant relocation assistance and rent control.  The full housing policy menu also includes restrictions on tenancy terminations for owner move-ins and substantial renovations, and tenant anti-harassment protections — policies that apply to existing rental properties and go beyond the statewide protections established under AB 1482, the Tenant Protection Act of 2019.

Several commissioners raised questions during the meeting about whether the housing policies on the menu — including rent control and tenant relocation payments — bear any demonstrated connection to increasing supply of housing and improving transit outcomes such as bus service, station access and ridership.

What happens next

For CAA members, the next phase is whether local jurisdictions apply for the program’s transportation grants.

CAA will continue monitoring implementation and advocating for policies that protect housing supply, support legal clarity, and avoid funding structures that pressure local governments to adopt regulations that exceed state standards.

CAA thanks the more than 100 members who submitted written comments and the coalition partners who engaged throughout the year-long process, particularly the Santa Clara County Association of REALTORS and partners including the East Bay Leadership Council and the BayEast and Contra Costa associations of REALTORS. Additional community members from San Mateo, Alameda, and San Francisco counties participated remotely and provided public comment.