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The California Democratic Party on Sunday voted overwhelmingly to endorse Proposition 10, the statewide Affordable Housing Act, which would repeal the anti-rent-control Costa-Hawkins Rental Housing Act and return power to regulate rents to local communities.

Signed into law in 1995, Costa-Hawkins prevents cities and counties from applying rent control to apartments built after 1995, or to single-family rental units and condos. Costa-Hawkins also allows landlords to raise the rent as much as they want when a unit becomes vacant.

The Yes on Prop. 10 effort eclipsed the 60-percent support threshold to secure the party endorsement for the Nov. 6 general election.

This endorsement dovetails with a February addition to the official state Democratic party platform that specifically calls for “allowing local communities to create strong tenant and affordability protections against displacement, speculation, rent increases, and evictions without interference from state law.”

“Securing the Democratic Party endorsement is huge,” said Joe Trippi of Trippi Norton Rossmeissl Campaigns, the lead strategist of the Yes on 10 campaign. “The party’s endorsement helps make clear that it stands with the millions of Californians struggling to pay the rent and supports returning the power to respond to the state’s housing affordability crisis back to the people and back to local communities.”

Prop. 10 also has its critics, one of their main assertions being that the spread of local rent control will have a chilling effect on construction of new apartments in California.

“From Lt. Gov. Gavin Newsom to labor unions such as the State Building and Trades Council of California to the NAACP, we are confident that most Democrats will oppose Michael Weinstein’s Prop 10 because it will worsen California’s affordable housing crisis,” Steven Maviglio, a political consultant for anti-Prop. 10 forces said Sunday, July 15.

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9 Comments

  1. This is good – bring control of our communities down to the community level, not some state run thing.

    This vote just allows communities greater flexibility to choose what is the right thing for THEIR COMMUNITIES. Sort of a state’s rights issue – power down to the community.

    It’s the republican, conservative, small government thing to do.

    Personally, I don’t want the STATE telling us what to do in our COMMUNITIES!

  2. Wow! Did I read this correctly. Gavin Newsome and labor are AGAINST Prop 10. The sun must have come up in the west this morning. I seldom find myself in consensus with labor and left leaning politicians but opening the rent control doors to mostly populist local governing councils is the penultimate example of a good idea gone bad. When government at any level begins to try to tell businesses how to operate they almost always create havoc and market place disruption. In the end, the very people these do-gooders set out to help bear the brunt of the law of unintended consequences. Yes, we desperately need a better housing market in the bay area COUPLED with appropriately configured infrastructure which is not being addressed. Prop 10 will simply aggravate both of these issues.

  3. “When government at any level begins to try to tell businesses how to operate…”

    I’m confused. You are for repealing the Costa-Hawkins Rental Housing Act because it’s big government Sacramento control by state politicians. Correct?

    Or do you prefer Costa-Hawkins and other big government laws stay on the books?

    We need to take federal power down to the states (states rights) and state power down to the voter in our community.

  4. Anyone who ever took a basic microeconomics class should know that placing non-market constraints on an economy will yield suboptimal results. If rents are forced below a market clearing price, there will be shortages in supply. Developers will not build housing in rent controlled locations. Rental unit owners will convert to condos and get out. It’s s total no-brainer if you look st the big picture. Sure, those renters who have rent controlled housing will be happy, and we’ll see the media post feel good stories about how some nice family gets to stay in their apartment. But in the big scheme rent control is a terrible idea.

  5. To libertarian:
    If I read the article right and I think I did Proposition 10 would repeal the Costa Hawkins Act “endorse Proposition 10, the statewide Affordable Housing Act, which would repeal the anti-rent-control Costa-Hawkins Rental Housing Act and return power to regulate rents to local communities…”> This is kind of one of those double negative things. The repeal would actually open up the opportunity for more rent control not place any further limits on rent control. As usual with things politic if you can’t do it right the first time see if you can confuse them into voting for something that’s even worse. Read the first part of the article carefully. The Costa Hawkins act actually imposed limits on the range of renal properties which could be subject to rent control. Repeal would remove those limits, making almost all rental property subject to rent control.

  6. Repeal the big government law, let local communities run their lives. We know what our communities need, not Sacramento.

    Compromise your small government principles on this, and before you know it, we’re looking at the Tyranny of the Majority.

  7. Huh????

    We have a housing shortage, yet state Democrats want to REDUCE the incentive to bring more housing online.

    Housing shortages and high housing prices are NOT caused by landlords and homeowners. Its caused by poor government policies — both statewide and local — that constrain housing growth and encourage office buildings.

    What a bunch of morons.

  8. Rent stabilization doesn’t inhibit the production of more housing, so it’s time to retire that myth. Libertarian – Thank you for your insightful comments.

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