An appellate court’s interpretation of California’s Costa-Hawkins Rental Housing Act could invite more cities and counties to impose rent control on substantially rebuilt housing.

California’s First District Court of Appeal issued its tentative decision a few days before Tuesday’s hearing in NCR Properties, Inc. v. the City of Berkeley — a lawsuit challenging Berkeley’s application of its local rent control ordinance to several housing units that received new certificates of occupancy following substantial renovation.

CAA first reported on this case in September 2022, when it filed a joint amicus brief with the San Francisco Apartment Association (SFAA) supporting the property owner’s position.

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