As we have reported previously, one of the most hotly watched propositions currently out for signature is one that will repeal the Costa-Hawkins act and usher in a new era of rent-control proposals in California.  The 20-year old policy has been credited with increasing the housing supply in the State even while builders have to deal with a very unfriendly regulatory environment.

Costa-Hawkins, passed in 1995, restricts the ability of local governments to impose rent control. Sponsors of the repeal initiative have dubbed their measure the “Affordable Housing Act.” The measure, if final approval is given to circulate petitions, needs 385,880 valid signatures of voters collected within a six-month window to qualify for the ballot.

Within minutes of the announcement that the initiative had been filed, the California Apartment Association released the following statement:

“If local rent control ordinances are allowed to regulate rents on new construction and single-family homes, new private investment into rental housing will come to a screeching halt,” said Tom Bannon, the Association’s chief executive officer.

In effect, new developments will come to a standstill if such ordinances are adopted.

The commercial real estate industry has always supported our allies on the residential side of the business as we agree, rent control is a damaging policy that will only drive away investment, drive costs up, and restrict availability of all kinds of properties.

Click here to see the full statement by CAA.

© 2007-2012 Building Owners and Managers Association of California (BOMA Cal)