Prop 21 Did NOT Pass!
Proposition 21 has officially been rejected by California voters with a majority of 59.83% voting against the local rent control initiative. This means that our state will remain using rent control guidelines established under Costa Hawkins.
The Costa Hawkins Rental Act was established in 1995 in an effort to set limits on cities’ ability to set rent control policies and address the discontent of landlords. Under Costa Hawkins cities are unable to create rent control over certain residential units such as single-family homes, condos, or newly constructed apartment units. As well, landlords have the right to raise their rents to market value once a tenant moves out.
Proposition 21, also known as the Local Rent Control Initiative would have replaced Costa Hawkins entirely and allowed local governments to adopt rent control on housing units (with some exceptions). It also would have allowed rent increases of up to 15% over three years at the start of a new tenant.
We are extremely pleased with the outcome of the vote, being a brokerage that focuses mainly on multifamily properties, we strive to protect CA owners and continue to create housing for those in our community.