Special Report: California Proposition 21

Initiative to Tighten Rent Control on California Ballot as State Limits Owner’s Ability to Recapture Market Rents

August, 2020

The repeal of long-standing Costa-Hawkins has the potential to capture thousands of previously market-rate apartments into local rent control. Local municipalities will have the authority to control units first occupied 15 years ago or later. Moreover, owners’ ability to lift rent to the market rate between tenants will be erased.

Key Features:

• Proposition limits amount rent can rise between tenants

• Cities free to put more properties under rent control

• No provision to ever recapture market rents, limiting reinvestment