Why is Prop 10 Important?

Why is Prop 10 Important?

Only 4 more weeks left before election day, do you know what Proposition 10 (Prop 10) is? In simple terms, Prop 10 allows cities and counties to control how much a landlord can charge for rent. Some people like this proposition because it allows local governments (who understand local housing issues) to be in control. Voting YES on Prop 10 will repeal the Costa-Hawkins Rental Housing Act which was established in 1995.

Costa-Hawkins Rental Act: Statewide Rent Control
In the late 1970’s, California experienced high housing prices and high interest rates. At the same time, land use restrictions prevented the building of new homes. The inability of families to purchase affordable homes created a surge in families seeking rentals. Due to high demand, landlords increased the price of rent. Residents became increasing angry because of the increases in rent despite the fact that wages remained the same and inflation increased. Tenant activist groups pressured legislators to adopt rent control measures to prevent landlords from “rent gouging”. Social, economical, political, and legal issues of the time led to the adoption of the Costa-Hawking Rental Housing Act. This law allows the state of California to control rent laws and restricts local governments’ (cities and counties) ability to impose laws on landlords and rent prices. A YES vote on Prop 10 means: The state of California will no longer be able to limit the rent control laws imposed by local governments (cities and counties). A NO vote on Prop 10 means: The state of California continues to limit the local government's power over rent laws.

Those in favor of Prop 10 feel that local governments should have more control of rent laws because they have better understanding of their communities. Landlords and tenants should not be at the mercy of sweeping State laws which may not reflect local economies. It is predicted that local governments will make laws to decrease rent so people (voters) will find affordable housing. In general, renters support Prop 10.

Those in favor of Costa-Hawkings Rental Act (and oppose Prop 10) feel that the 1995-issued law puts sensible and stable restrictions that benefit the state’s overall housing market. The law prevents cities from making over-reaching laws which benefit renters on the short term. Laws which antagonize landlords will ultimately deter investors & developers and exacerbate the housing shortage. In general, landlords are opposed to Prop 10.

Get informed! Read more about Costa-Hawkings Rental Act and Prop 10.