The fate of the rental housing business is literally hanging by a thread. Proposition 10, the so-called “Affordable Housing Act,” would destroy our future and actually make the housing crisis worse by repealing the long standing Costa-Hawkins Rental Housing Act; thus, allowing local governments to impose draconian rent control measures.
CalRHA strongly opposes Prop 10. Here’s why Rental Housing providers, managers and even their tenants should vote NO:
- Proposition 10 will eliminate the protection of buildings constructed after 1995 from rent control. We expect that the cities with existing rent control ordinances will immediately expand their laws to include these buildings in their rent control programs if Prop 10 passes.
- Even worse, Proposition 10 would eliminate “vacancy decontrol”, meaning cities could force owners to maintain the current rent rate on units being vacated.
- Our tenants should beware as well. Proposition 10 will reduce the availability of affordable and middle-class housing. Experts from the University of Southern California, U.C. Berkeley and Stanford agree that it would drive up rents, while discouraging new construction and reduce the availability of affordable and middle-class housing.
- Even the state’s nonpartisan Legislative Analyst has found that passage of Proposition 10 would both discourage new construction and result in existing rental units being taken off the market, reducing availability of rental housing.
- Proposition 10 will cause homeowners to sell or convert rental properties into other more profitable uses, such as short-term vacation listing services like Airbnb. That would increase the cost of existing housing and make it even harder for renters to find affordable housing.
- Proposition 10 will cost taxpayers hundreds of millions of dollars per year, reducing revenues available for education and public safety. The Legislative Analyst also said that Proposition 10 would likely reduce the value of rental properties and single-family homes, driving down local property tax revenues by up to hundreds of millions of dollars per year. Driving down home values will hurt middle-class families and will also reduce the funding available for vital services like schools, public safety, road repairs, education, and fire safety. In this case, everyone — even tenants — suffers a big blow.
Take my message to everyone you know… Vote NO on Proposition 10.
Written by Larry Cannizzaro, President of CalRHA
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