Is Rent Control in California About to Grow?
Digested from Curbed San Francisco
For 22 years, apartment developers in California have operated under the Costa-Hawkins Act, which exempts new construction from rent control.
In February, legislators in the California Assembly introduced a bill, AB 1506, that aims to end that exemption. The bill’s full language is succinct: “The Costa-Hawkins Rental Housing Act prescribes statewide limits on the application of local rent control with regard to certain properties. This bill would repeal that act.”
In early March, landlords from San Francisco and San Jose protested the repeal of Costa-Hawkins at an Assembly Housing and Community Development Committee meeting, according to SFist. They say the law’s repeal would put them out of business.
The California Apartment Association (CAA) has released a statement against the repeal, which says in part: “Instead of exacerbating the state’s housing shortage with deterrents to development, lawmakers should work to boost the state’s housing supply. Building more housing decreases market pressures and helps moderate rent prices, a phenomenon already at play in the Bay Area.”
The bill has not yet been assigned to a committee in the Assembly.