City Council
MEETING DATE: 9/26/2018
TITLE:
Title
Discussion of Proposition 10
End
FROM:
Charles McClendon, City Manager
RECOMMENDATION:
Recommendation
This item is presented for information, discussion and direction only.
Body
BACKGROUND:
Proposition 10 is an initiated state statute that would repeal the Costa-Hawkins Rental Housing Act (Costa-Hawkins), thus allowing local governments to adopt rent control ordinances-regulations that govern how much landlords can charge tenants for renting apartments and houses. Proposition 10 would also state that a local government's rent control ordinance shall not abridge a fair rate of return for landlords. CM Aguilar requested a discussion item allowing the Council to consider taking a position on Proposition 10.
DISCUSSION:
Costa-Hawkins is a state statute that limits the use of rent control in California. Costa-Hawkins provides that cities cannot enact rent control on (a) housing first occupied after February 1, 1995, and (b) housing units where the title is separate from connected units, such as condominiums and townhouses. Costa-Hawkins also provided that landlords have a right to increase rent prices to market rates when a tenant moves out. Prior to the enactment of Costa-Hawkins, local governments were permitted to enact rent control, provided that landlords would receive just and reasonable returns on their rental properties. The California State Legislature passed Costa-Hawkins in 1995.
More information and the text of the initiative can be found at:
<https://ballotpedia.org/California_Proposition_10,_Local_Rent_Control_Initiative_(2018)>
FISCAL IMPACT:
There is no cost to the City related to the discussion item or the proposition.
ATTACHMENTS:
Proposition 10 Text