What Is Prop 33 And Should I Vote Yes? (Yes, You Should!)

by Eric L. Toscano, Esq.

If Proposition 33 passes, renters living in properties newly covered by rent control would see more restrictions on rent increases, potentially lowering their housing costs.  Additionally, certain types of housing (e.g., newer buildings and single-family homes) have the potential for additional protections.  

What is Proposition 33?  

Proposition 33 is a new measure that could have a significant impact on rent control laws across California. This initiative aims to expand the authority of local governments to regulate rents and increase protections for tenants. If passed, it would give cities and counties the power to implement and enforce rent control policies on virtually all types of residential properties, including those previously exempt under the current state law.  

How Would This Change the Status Quo? 

In California, renters already face one of the most expensive housing markets in the nation. Renters here typically pay approximately 50% more than the national average, and in some regions, rents are more than 100% of the national average.  The high cost of housing is due to the limited availability of rental properties, forcing tenants to compete for housing, which in turn drives up rents. 

Several cities—such as Los Angeles, San Francisco, and San José, to name just a few—have implemented local rent control laws, limiting how much landlords can increase rents each year. Additionally, a state law prevents landlords in certain situations from raising rents by more than 5% plus inflation annually, capped at a maximum of 10%.  However, this law is set to expire in 2030, which adds urgency to the ongoing discussions about rent control.  

How Is Rent Control Currently Limited? 

Currently, local governments’ ability to enact rent control laws is restricted by the Costa-Hawkins Rental Housing Act.  Costa-Hawkins, which has been in effect since 1995, prevents rent control on single-family homes, buildings constructed after February 1, 1995, and new rental units—meaning that once a new tenant moves into a rental unit, landlords can set the initial rent without restrictions.  This law significantly limits the types of properties that local governments can regulate under rent control ordinances.   

What Will Change if Proposition 33 Passes?  

If Proposition 33 is approved by voters, it will eliminate the Costa-Hawkins Act and allow local governments to expand rent control to protect tenants in several key ways: 

  • Regulating rents for all types of housing, including newer buildings and single-family homes.  
  • Capping rent increases for new tenants when they move into a rental property. 
  • Providing more legislative freedom to cities and counties to enact laws that will best protect their tenants. 

Conclusion  

Proposition 33 could reshape the rental landscape in California, offering more protections for tenants.  As a law firm dedicated to tenants, we believe the passage of Prop 33 will strengthen existing rent control laws and encourage you to vote YES. 

For more information on Proposition 33, visit California Secretary of State’s website at https://voterguide.sos.ca.gov/propositions/33/arguments-rebuttals.htm.