Why is it a hard no on prop 33? Allow me to explain
In 1995, lawmakers signed the Costa-Hawkins Rental Housing Act into law. It’s a safeguard against runaway rent control, establishing sensible limits to civic rent control ordinances and a semblance of statewide uniformity. But Proposition 33 directly attacks Costa-Hawkins. If Proposition 33 passes, California rent control will descend into utter chaos with cities making up their own laws… if they decide to have rent control at all. And that brings me to my first point.
The people had spoken twice
That’s because measures similar to Proposition 33 have made their way onto the ballot twice before in recent years. And both times, these measures were summarily rejected by the people. So, how long are we going to keep doing this? Groups like the AIDS Healthcare Foundation (AHF), the primary sponsors of Proposition 33, seem to keep trying to ram this undercooked measure in at every opportunity, waiting for people to relax their guard. Opinions haven’t changed. The people don’t want Proposition 33.
The primary backer of prop 33
AIDS Healthcare Foundation may seem virtuous at a glance. But we’ve all seen what happens when this group, which is supposed to be a non-profit assisting patients, gets involved with real estate. AHF recently settled out of court when tenants of a Skid Row building they owned took them to task for their gross failure to provide safe and habitable housing. AHF has also come under fire in recent years for using unethical means to gain voter support, such as paying for signatures. Rife with potential conflicts of interest and a distinct lack of financial disclosures.
Rent Control Doesn’t Work
It’s a band-aid on a gaping wound; a short-term distraction for a long-term, systemic problem that needs earnest consideration. Measures like Proposition 33 may seem like they are for the people, but immediacy doesn’t translate to effectiveness. In reality, rent control laws bring the state’s already inadequate housing development to a screeching halt. And without new inventory, we’re just rapidly bleeding out small-time property owners so that corporate investors can swoop in and completely gut this industry. Don’t just take it from me. Take it from seasoned economists who have been warning us about the slippery slope of rent control laws for years. California needs to do better and California deserves better.