What Do Affordable Housing Developers Think of California's Potential Rent Control Initiative?

A California November 2018 ballot initiative seeking to repeal the Costa-Hawkins Rental Housing Act could have unintended consequences, according to Related California's Bill Witte.

2 minute read

July 9, 2018, 7:00 AM PDT

By rzelen @rzelen


Washington, D.C. Apartment

David Harmantas / Shutterstock

In California’s continued debate over housing affordability and stability, tenant advocacy has begun to take a more prominent role. An initiative on the November ballot seeks to repeal the Costa-Hawkins Rental Housing Act, a 1995 state law that restricts local rent control ordinances.

The Planning Report caught up with Bill Witte—CEO of Related California, a major developer of multifamily housing in the state—to understand what affordable housing developers are thinking about regarding this initiative. The initiative was deemed Proposition 10 by the California Secretary of State Alex Padilla, and will be listed as the initiative to "expand local governments’ authority to enact rent control on residential property." 

The two largest cities in California—Los Angeles and San Francisco—have forms of rent stabilization in which older buildings’ rents can be controlled. But when they have a vacancy, they can be priced at market rates. As a result, there have been no inhibition of investment in rental housing under that scenario, while there is some protection for tenants such as the Ellis Act. Strengthening and reforming the Ellis Act has been a focus of California's state legislature this session, but many of the core tenant protection bills have failed. 

Witte expressed grave concern that rents have been increasing too much, exacerbating inequality among a growing lower-income and moderate-income population. However, Witte explained that the initiative to expand rent control has "an unusually untargeted policy impact" because there is no rent control by zip code or income. Witte states that "the economic benefits disproportionately go to people in higher- and middle-income neighborhoods." 

He stated that "the real debate ought to be on tools that can legitimately protect tenants who are in need." Witte noted that Carol Galante of the UC Berkeley Terner Center for Housing Innovation has proposed an “anti-gouging” provision in which rents could not be increased more than 10 percent in any given year.

A former Deputy Mayor of San Francisco addressing Housing and Neighborhoods under both Art Agnos and Dianne Feinstein, Witte explained that expanding rent control might also curb new construction or impose vacancy controls. To Witte, the effort to repeal Costa-Hawkins distracts from the considerable focus in Sacramento lately on providing more affordable housing.

Read more in The Planning Report

Friday, July 6, 2018 in The Planning Report

portrait of professional woman

I love the variety of courses, many practical, and all richly illustrated. They have inspired many ideas that I've applied in practice, and in my own teaching. Mary G., Urban Planner

I love the variety of courses, many practical, and all richly illustrated. They have inspired many ideas that I've applied in practice, and in my own teaching.

Mary G., Urban Planner

Cover CM Credits, Earn Certificates, Push Your Career Forward

Logo for Planetizen Federal Action Tracker with black and white image of U.S. Capitol with water ripple overlay.

Planetizen Federal Action Tracker

A weekly monitor of how Trump’s orders and actions are impacting planners and planning in America.

July 2, 2025 - Diana Ionescu

Aerial view of town of Wailuku in Maui, Hawaii with mountains in background against cloudy sunset sky.

Maui's Vacation Rental Debate Turns Ugly

Verbal attacks, misinformation campaigns and fistfights plague a high-stakes debate to convert thousands of vacation rentals into long-term housing.

July 1, 2025 - Honolulu Civil Beat

Person wearing mask walking through temporary outdoor dining setup lined with bistro lights at dusk in New York City.

Restaurant Patios Were a Pandemic Win — Why Were They so Hard to Keep?

Social distancing requirements and changes in travel patterns prompted cities to pilot new uses for street and sidewalk space. Then it got complicated.

June 19, 2025 - Diana Ionescu

Aerial view of new neifhborhood under construction with enpty lots in foreground.

In California Battle of Housing vs. Environment, Housing Just Won

A new state law significantly limits the power of CEQA, an environmental review law that served as a powerful tool for blocking new development.

July 2 - CALmatters

Low-rise Pearl Sreet mall in Boulfer, Colorado.

Boulder Eliminates Parking Minimums Citywide

Officials estimate the cost of building a single underground parking space at up to $100,000.

July 2 - Boulder Reporting Lab

Two-story buildings with porches in walkable Florida neighborhood.

Orange County, Florida Adopts Largest US “Sprawl Repair” Code

The ‘Orange Code’ seeks to rectify decades of sprawl-inducing, car-oriented development.

July 2 - CNU Public Square