One of the most controversial measures on the November 6 ballot in California is Prop. 10: the repeal of the landmark Costa-Hawkins Act that places limits on rent control. Real estate investment trusts are donating big time to defeat it.
The measure would repeal the 1996 Costa-Hawkins Act that places limits on rent control ordinances. Repealing the act would allow cities with rent control to consider expanding rent control to provide tenants greater protections.
A statewide initiative has been filed by California tenant activists that would repeal the Costa-Hawkins Act, the 1995 legislation that restricts the type of rental housing regulated by local rent control ordinances.
In an attempt to combat prohibitively high housing costs in California, some look to repeal the 1995 state law that limits the power of local rent control ordinances. However, removing those restrictions would likely exaggerate current problems.