Measure for Measure: Proposition 10
Voting is an essential part of civic engagement, but it can be confusing, especially in local elections. There are tons of measures and candidates to consider in the upcoming election on November 6th. That’s why we’re doing this round-up of the statewide measures, to provide some insight into the 2018 ballot.
Check out our round-up page for more articles on the other measures.
What is Proposition 10?
Proposition 10 is one of the most controversial initiatives on this November’s ballot. It would repeal California’s restriction on rent control, known as the Costa-Hawkins Act, passed in 1995. Costa-Hawkins makes it impossible for city rent control ordinances to apply to buildings built after 1995 and all single-family homes, regardless of when they were built. Tenants rights advocates have been working to enact rent control in more cities across the state. Currently only 15 California cities have a rent control ordinance, covering only 25% of the state’s renters.
Why does it matter?
Advocates have been trying to get the legislature to repeal Costa Hawkins. That effort to repeal the law through the legislature has been futile, mostly because landlords and developers have successfully blocked these attempts. Since advocates have taken their repeal fight directly to the ballot, those landlords and developers are leading the opposition.
It’s important to be very clear about what this ballot measure does not do. It does not impose rent control across California. It simply removes a barrier for local governments to set up broader rent control regimes of their own. What’s uncertain are the rent control regimes that may fill the vacuum if the Costa-Hawkins barrier is removed. It is certain, however, that a repeal would throw a huge unknown variable into the already-fragile housing production environment.
No one really knows what this would do to production (or to housing stock, if owners decide to take units off the market, though there has been some research that shows a negative effect on the rental market). It’s possible nothing changes, that cities don’t update their ordinances or adopt new ones. It’s possible — though pretty unlikely — that cities adopt much stricter ordinances instituting rent control over all rental stock. It’s also possible that cities find middle-road solutions, like instituting a rolling date when units become covered by rent control as Berkeley is proposing on this November’s ballot. In any event, the introduction of this level of uncertainty makes us, as well as some housing experts, nervous.
At the same time, we do think landlords need some checks on their power in the capitol. Despite the urgency of the state’s housing crisis, their lobbyists have consistently blocked even the most incremental tenant protections. Their lack of accountability for the affordability crisis is stunning; if we’re to arrive at balanced policy solutions that protect low-income tenants while at the same time increasing production of new units, the apartment-owner lobby must be forced to moderate their position. We believe passage of Prop 10 would move them to the negotiating table.
What is TechEquity’s position on Prop 10?
We have thought long and hard about what TechEquity’s position should be on this important measure. On one hand, the housing affordability crisis has never been more urgent. Renters, especially low-income people and communities of color, are being displaced at record numbers, pushed far enough out of the state’s economic growth centers that they can’t reasonably access the job opportunities our current boom creates. On the other, there is a very real risk that enacting broader and stricter rent control ordinances would threaten new development of both affordable and market-rate housing — development which we desperately need in order to solve the housing shortage over the long term.
After much deliberation and dialogue with trusted partners and advisors, we’ve decided to take a neutral position on this bill. We believe reasonable people can disagree in good faith about the benefits or costs of repealing Costa-Hawkins. We also think it is important to pursue other legislative solutions that balance the need to protect renters with the need to spur more development of new housing.
Ultimately, we think the choice between the status quo and an uncertain future where cities are left to make their own decisions about rent control is a bad one. There is an opportunity to enact renter protection legislation at the state level that 1) provides stability for vastly more renters than rent control ever realistically will, and 2) doesn’t disincentivize new development. We outlined this opportunity in a blog post earlier this year. We feel strongly that pursuing this path, and not being forced into the false choice of Costa-Hawkins or not, is the best way to advocate for all California renters who live with the stress of uncertainty about their housing costs.
Check our round-up page for more measure articles as we publish them!
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