A declaration of intent to gather signatures for a ballot initiative to repeal Costa-Hawkins has been submitted to the State of California.
Over 300,000 signatures will be needed for this to become a state wide ballot initiative and we need all owners to get involved to ensure even if it does make it to the ballot, it fails. Make sure all of your partners who care about this industry are knowledgeable about this radical effort to repeal Costa-Hawkins. You can read more about the effort to repeal HERE!
Costa-Hawkins, the state law passed in 1995, helps ensure the local housing market is not hampered by stringent price controls which have been found time and again to be detrimental to society as a whole. It exempts new construction from local rent control laws to encourage the supply of housing, exempts single-family homes from any form of rent control and requires all local rent control laws to contain a “vacancy decontrol” provision to allow the rental price to be set at the operator’s discretion after a tenant vacancy.
This law has been a lifeline to rental owners in rent control jurisdictions and has served to moderate the more crippling elements of price controls. Prior to Costa-Hawkings, cities such as Santa Monica prevented the raising of rents upon a vacancy. Costa-Hawkins is the single most important legislation protecting rental property operators in the State of California.