What to know about Prop 21

(KION) - Proposition 21 would allow local governments to establish rent control on residential properties that are more than 15 years old. There's also a potential reduction in state and local revenues worth tens of millions of dollars every year. Also depending on actions by local communities, revenue losses could be less or more.

"What prop 21 does is it restores the power of local authorities of local governments to place reasonable limits on rent increases and preserve affordable housing," says Rene Moya with the YES on 21 campaign.

With Prop 21, local limits on rate increases could differ from the statewide limit.

"We already have statewide rent control in California, last year the governor signed the most sweeping and protective form of rent control in the nation, so we already have that," says Debra Carlton with the California Apartment Association, which supports the NO on 21 campaign.

Supporters argue Proposition 21 is the change we need to tackle homelessness and keep families in their homes.

"Our cities are not armed, they're not equipped with the policies that they need to intervene so that people can stay in their homes," says Moya.

A strong coalition of elected leaders, affordable housing providers, and senior, veteran, and homeless advocates agree proposition 21 will help prevent homelessness.

"If you are one of the 17 million renters in the state of California, this would allow us to protect you from arbitrary and frankly unsustainable rent increases," says Moya.

Opponents to Proposition 21 say this will only make California's housing crisis worse -- especially during the pandemic.

"Prop 21 is the same bad idea as it was two years ago, in fact, given what were facing in housing right now, proposition 21 would be harmful now than ever," says Carlton.

No on prop 21 believes the bill undermines the strongest statewide rent control law in the nation, along with it potentially costing jobs and reducing home values.

Governor Gavin Newsom, the Republican Party of California, some construction unions, and a number of real estate corporations support No on Prop 21.

"There's nothing in prop 21 that prevents evictions for Californians that they may be facing now, there's nothing in prop 21 that builds as single unit of affordable housing which California desperately needs," says Carlton.

Look for Proposition 21 on the 2020 ballot.