How California’s Prop 33 could impact local rent control on the Central Coast
SALINAS, Calif. (KION-TV) Across the Central Coast, it’s no secret the cost of housing is a problem for many neighborhoods. Prop 33 is looking address that issue, expanding the ability for cities and counties to enact rent control. However, there’s also concerns about the impact it could have on the housing supply.
On Sep. 24th, Salinas City Council passed multiple ordinances surrounding rent stabilization and tenant protection. While it marks a major step for the city, it was also bound by limitations from the state.
Under the state’s Costa-Hawkins Rental Housing Act, local rent control cannot be applied to single-family homes or housing built on or after Feb. 1, 1995. It also allows landlords to reset the rental rate when a tenant moves out.
If Prop 33 were to pass, those rules would go away, giving cities and counties more power.
“If Proposition 33 passes, if anything, we'll be able to see more confidence from our tenants. You know, we'll be able to see that that their local government is is paying attention," Building Healthy Communities Neighborhood Organizer Luis Xago Juarez said.
Juarez said, this move is much needed given the high cost of rent and large number of renters in the community.
However, Salinas Valley Chamber of Commerce’s Government Affairs Liaison Kevin Dayton said, it could cause more harm than good to the housing market.
“Salinas Valley Chamber of Commerce believes that controlling the price of rental housing actually reduces the amount of rental housing that's available," Dayton said.
Dayton argues, expanding rent control would disincentivize the building of new housing worsening the housing shortage.
People in Salinas tell KION they are split on the expansion of local rent control.
"I think we got to think about what's going to happen with implementation. Sometimes things sound real good. Oh yeah, we're going to stop the we're going to lower these prices, but then you implement and it has all kind of other ramifications," Salinas resident Paul Bogdan said.
“It's advantageous. I think it's a good it'd be a benefit. I mean, I even signed the petition that was going around for rent control. I think I've signed a couple of them," Salinas resident Maxine Sanchez said.
As voters head to the polls to decide the fate of Prop 33, those on each side have this message.
“[A] good majority of our neighbors, are going to can benefit directly, that that we give it a chance, that we give it a shot, that we you know, that we look at just how this, this will help overall, our state economy," Juarez said.
"What it's going to do is it's going to slow down future economic growth and job creation, because there's going to be a greater shortage of housing, and fewer people are going to be able to live her," Dayton said.
As the election approaches ads for and against Prop 33 have been ramping up on the airwaves. According to CalMatters, so far over $147 million have been invested into this prop between the two sides.
