‘Justice for Renters’ going to state voters as Proposition 33

The Nov. 5 statewide ballot now officially includes anti-housing activist Michael Weinstein’s latest attempt to bring extreme forms of rent control back to California.

Earlier this month, the Secretary of State’s Office announced that the so-called “Justice for Renters Act” will go before voters as Proposition 33.

Proposition 33 aims to repeal 1995’s Costa-Hawkins Rental Housing Act, the state’s most important rental housing protection law. Costa-Hawkins exempts specific properties, such as single-family homes and new construction, from local rent control and safeguards vacancy decontrol, allowing landlords to adjust rents to market rates after a tenant moves out and a new renter moves in.

Funded by Weinstein, president of AHF, Proposition 33 is reminiscent of the pharmaceutical magnate’s previous failed attacks on Costa-Hawkins at the ballot box, namely Proposition 10 in 2018 and Proposition 21 in 2020. Both measures were defeated, largely due to efforts by the California Apartment Association. Weinstein has spent upwards of $100 million on his previous rent control campaigns and has vowed to continue pushing for statewide rent control until a measure is passed.

Without Costa-Hawkins, cities and counties could implement vacancy controls, keeping rents below market in perpetuity, a form of extreme rent control seen in cities such as Santa Monica and Berkeley during the 1970s and 1980s. These controls led to a significant reduction in the availability and quality of rental housing and deterred new housing investment.

Economists and housing experts from Stanford and UC Berkeley warn that Proposition 33 would worsen California’s housing crisis by hindering new affordable housing construction and overturning state laws mandating more affordable housing. Additionally, Proposition 33 would remove protections for homeowners, allowing regulators to control rental prices for single-family homes and accessory dwelling units.

If passed, Proposition 33 would expand rent control to currently exempt properties, increase pressure to implement rent control in more cities, reintroduce vacancy control, and cause significant market instability. Such changes would decrease property values, deter new housing development, and exacerbate California’s housing crisis by reducing the quality and availability of rental housing.

CAA’s campaign committee opposing Proposition 33, Californians for Responsible Housing, is working to educate voters on the negative consequences of repealing Costa-Hawkins. The campaign stresses that Prop 33 fails to address the root causes of the housing crisis, such as the need for increased funding for affordable housing and new housing construction.

For more information on the upcoming election and ways to help defeat Prop 33 and save Costa-Hawkins, visit the Californians for Responsible Housing website.