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PROPOSITION
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aaoc.com
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VOL. LVIII
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November 2018
EXPANDS LOCAL GOVERNMENTS’ AUTHORITY TO ENACT RENT CONTROL ON RESIDENTIAL PROPERTY. INITIATIVE STATUTE.
OFFICIAL TITLE AND SUMMARY
California General Election
PREPARED BY THE ATTORNEY GENERAL
The text of this measure can be found on the Secretary of State’s website at http://voterguide.sos.ca.gov.
Tuesday • Repeals state law that currently restricts the SUMMARY OF November 6,LEGISLATIVE 2018ANALYST’S ESTIMATE scope of rent-control policies that cities and other local jurisdictions may impose.
OF NET STATE AND LOCAL GOVERNMENT FISCAL IMPACT:
Polls Are Open From 7:00 a.m. to 8:00 p.m. on Election Day!
O N E T O V ON 0 1 P O R P
• Allows policies that would limit the rental rates that residential-property owners may charge for new tenants, new construction, and single-family homes. • In accordance with California law, provides that rent-control policies may not violate landlords’ right to a fair financial return on their rental property.
• Potential net reduction in state and local revenues of tens of millions of dollars per year in the long term. Depending on actions by local communities, revenue losses could be less or considerably more.
Official VOter infOrmatiOn Guide ★ ★ ★ ★ ★
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ANALYSIS BY THE LEGISLATIVE ANALYST
BACKGROUND
Costa-Hawkins creates three main limitations. First, rent control cannot apply to any singleCertificate of Correctness Rental Housing Is Expensive in California. Renters family homes. rent control can never I, Alex Padilla, Secretary of State of the State ofSecond, California, do hereby in California typically pay 50 percent more for certify that the measures included herein will be submitted to the electors apply to any newly built housing completed on or of the State of California at the General Election to be held throughout housing than renters in other states. In some after6, 2018, February Third, rent control laws the State on November and that this 1, guide1995. has been correctly parts of the state, rent costs are more than prepared in accordance with the law. Witness my hand and the Great Seal cannot tell landlords what they can charge a new California, this 13th day of August, 2018. double the national average. Rent is high inof the State in Sacramento, –7 renter when first moving in. es 4 g California because the state does not have a P State and Local Government Tax SeeRevenues. Three enough housing for everyone who wants to live taxes are the largest sources of tax revenue for Alex Padilla, Secretary of State here. People who want to live here must compete the state and local governments in California. for housing, which increases rents. The state collects a personal income tax on Several Cities Have Rent Control Laws. Several income—including rent received by landlords— In this issue California cities—including Los Angeles, earned within the state.19Local governments levy Achievementlaws Award that Winner — Ray Maggi. ....................................................... San Francisco, and San Lifetime Jose—have property taxes on property Increased and Competition for Contractors......................................................... 32 owners based on limit how much landlords can Demand increase rents for the value of their property. Your Assets....................................................................................................... 34 The state and local housing from one year toGather theAllnext. These laws governments collect sales AAOC’s Voter Guide 2018. .................................................................................................. 36 taxes on the retail sale often are called rent control. About one-fifth of ofIngoods. Successful Sales Transaction from Cash on the Myths of Real Estate.............. 38 Californians live in citiesDefining witharent control. Local rent boards administer rent control. These boards are funded through fees on landlords.
PROPOSAL
