Voters Reject California Rent Control Measure In Blow For Affordable Housing Advocates

In its third round on the ballot, Californians have said no to a measure that would allow municipal governments to expand rent control by voting against Proposition 33. 

The proposition would have repealed the Costa-Hawkins Rental Housing Act, which dictates how local governments can apply rent control. Doing so would have left decisions about which properties can be subject to rental regulations — single-family homes and newer apartments, for example — up to local governments, which would be able to expand rent control to those properties if they chose. 

Just over 62% of voters rejected the proposal, according to the New York Times, which called the race Wednesday morning.

Commercial real estate and real estate interests generally came out in force to oppose Proposition 33. As of midday Monday, groups opposing the proposition had raised nearly $125M, more than double the roughly $48M raised in support of it, the Los Angeles Times reported. The largest opposing donors were a California Apartment Association committee and state and national real estate associations, according to the LA Times. 

Supporters, including the proposition’s majority donor, the AIDS Healthcare Foundation, emphasized that allowing local governments to regulate rents on a broader range of properties will help deliver relief to renters who are strained by the ever-increasing cost of housing. 

But opponents said allowing rent control to expand would only aggravate the state’s affordability crisis by depressing property values and discouraging developers from building new housing.

AIDS Healthcare Foundation President Michael Weinstein placed blame for the failure of Prop. 33 largely on Gov. Gavin Newsom, who came out against it.

"Housing is and will remain a human rights issue," Weinstein said in a statement to Bisnow. "Throughout AHF's 38-year history we have always fought for what's right. It has never been easy. However, we will never give up the fight to achieve justice for renters.”

UPDATE, NOV. 11, 12:30 P.M. PT: This story has been updated with comments from AIDS Healthcare Foundation President Michael Weinstein.