Proposition 33: Expands Local Governments’ Authority to Enact Rent Control on Residential Property. Initiative Statute.
Justice for Renters Act
Summary
Proposition 33 (Prop. 33) is a citizen-initiated ballot measure that would enable cities and counties to control rents for single-family homes (houses) and apartments Prop. 32 adds language Section 1954.40 of California Civil Code prohibiting the state from limiting the ability of cities and counties to maintain, enact, or expand residential rent-control ordinances.
Cities and counties would be able to limit how much a landlord may increase rents when a new renter moves in. The proposition itself does not make any changes to existing local rent control laws. Generally, cities and counties would have to take separate actions to change their local laws.
Prop. 33 will repeal the Costa-Hawkins Rental Housing Act of 1995 (Costa-Hawkins), which generally prevents cities and counties from setting rent-control limits the initial rental rate that landlords may charge to new tenants in all types of housing, and from limiting rent increases for existing tenants in (1) residential properties that were first occupied after February 1, 1995; (2) single-family homes; and (3) condominiums.
Fiscal Impact
Per the Legislative Analyst's Office (LAO), Prop. 33 will reduce local property tax revenues of at least tens of millions of dollars annually due to likely expansion of rent control in some communities.
If Proposition 33 passes, local rent control laws probably would expand in some communities. This could have many effects on renters, landlords, and rental properties. The size of these effects would depend on how many properties end up being covered by local rent control and how much rents are limited. These things would be decided by future actions of local governments and voters.
The most likely effects are:
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Some renters who live in properties covered by rent control would spend less on rent. Some renters who live in properties not covered by rent control would spend more on rent.
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Some renters would move less often.
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Fewer homes would be available to rent. One reason for this is that some landlords would sell their properties to new owners who would live there instead of renting it out.
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The value of rental housing would decline because potential landlords would not want to pay as much for these properties.
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Property tax revenues for cities, counties, special districts, and schools could be reduced.A decline in the value of rental properties would reduce the amount of property taxes paid by landlords. With time, these property tax reductions likely would be at least tens of millions of dollars each year (annually). This is less than one-half of 1 percent of all property tax revenue. About half of the reduction would be property tax revenues that would have gone to schools. In some years, the state might give more money to schools to cover their losses.
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Expanding local government rent control laws could have increased costs, that could range from a few million dollars to tens of millions of dollars annually, and would likely be paid by fees on landlords.
What your vote means
A YES vote on this measure means: State law would not limit the kinds of rent control laws cities and counties could have (Costa-Hawkins would be repealed.)
A NO vote on this measure means: State law would continue to limit the kinds of rent control laws cities and counties could have. (Costa-Hawkins would not be repealed.)
Official Voter Information
California Secretary of State, Text of Proposed Laws, Prop. 33 begins on page 100
California Secretary of State and State Attorney General, Voter Information Guide, Summary Analysis of Prop. 33
California Secretary of State, Quick Reference Guide Prop. 33
California Legislative Analyst's Office, Proposition 33
California Secretary of State, Cal-Access, Cal-Access Campaign Finance Activity Prop. 33
California Secretary of State, Cal-Access: Campaign contributions for Proposition 33
California Fair Political Practices Commission, November 2024 General Election Top Contributors Lists
Non-partisan Voter Information
California Prop 33 Explained (video)
CalMatters Explicación de la Proposición 33 en las elecciones de California de 2024 (video)
Project for an Informed Electorate Sacramento State, Prop. 33 PIE Initiative Explainer (video)
Public Opinion Polls
Berkeley IGS Poll, September #2024-16 Prop. 33, p. 7
Berkeley IGS Poll, November #2024-19 Prop. 33, p. 8
Public Policy Institute of California Statewide Survey, Sept. 2024
Public Policy Institute of California Statewide Survey, Oct. 2024
Pro/Con Statements
Pro | Con |
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Supporters of Proposition 33 in California argue that it would allow local governments to specify housing policy based on local needs, which could help lower housing costs in a state known for its high cost of living. They emphasize the need for change as many renters spend over 30% of their income on rent. (US Department Housing and Urban development defines affordable housing as housing a household can afford spending no more than 30% of their income.) |
Opponents say if cities adopt strict rent control ordinances, it will make California’s already dire housing shortage even worse. They argue property values will drop and developers will be less likely to build new housing, which, in turn, will drive up prices in existing rental units. This measure does not actually include protections for renters and California voters have not supported this proposal twice already, when similar measures were on the ballot in 2018 (Prop. 10) and 2020 (Prop 21). |
Supporters | Opponents |
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The IGS Library has not located a campaign in support of the ballot measure. |