Cities Index.
Proposition 33 - Rent Control

Intergovernmental Relations Committee
July 17, 2024

Document
Proposition 33 - Rent Control
Meeting
July 17, 2024
Body
Intergovernmental Relations Committee
Original file
1.6 MB
Text extracted from the city's file for reading and search. Open the original on huntingtonbeach.legistar1.com. That file is the official record.

California Proposition 33, Prohibit State Limitations on Local Rent Control Initiative

A "yes" vote supports:
repealing the Costa-Hawkins Rental Housing Act (1995), thereby allowing cities and counties to limit rent on any housing and limit the rent for first- time tenants and
adding language to state law to prohibit the state from limiting "the right of any city, county, or city and county to maintain, enact or expand residential rent control."
A "no" vote opposes repealing Costa-Hawkins Rental Housing Act, which prohibits rent control on single-family homes and houses completed after February 1, 1995.

The initiative was designed to repeal the Costa-Hawkins Rental Housing Act enacted in 1995. The act prohibits rent control on single -family homes and houses completed after February 1, 1995. The act also prohibits rent control laws that mandate what a landlord can charge a tenant when they first move in. By repealing the act, the initiative would allow cities and counties to limit rent on any housing and limit the rent for a first -time tenant. Any local laws currently inoperative under Costa-Hawkins would take effect upon its repeal.

The initiative would also add language to California's Civil Code prohibiting the state from limiting "the right of any city, county, or city and county to maintain, enact or expand residential rent control." This does not prohibit laws related to renters such as the existing statewide limit on rent increases.

Who supports and opposes the initiative?
Support
Justice for Renters, which is sponsored by the AIDS Healthcare Foundation, is leading the campaign in support of the ballot initiative.

Oppose
Two committees, Californians for Responsible Housing and Californians to Protect Affordable Housing, are registered in opposition to the initiative.

City of Huntington Beach
Charter Section 803 Property Rights Protection Measure
(a) The City shall not enact or enforce any measure which mandates the price or other consideration payable to the owner in connection with the sale, lease, rent, exchange or other transfer by the owner of real property. Any such measure is hereby repealed.

Justice for Renters Act
Section 1.

This Act shall be known and may be cited as "Justice for Renters Act." Section 2.
2 2 -o o os
The following provision is added to Chapter 2. 7 of Title 5 of Part 4 of Division 3 of the Civil Code:
1954.40. The state may not limit the right of any city, county, or city and county to maintain, enact or expand residential rent control.

Section 3.

The following provisions of Chapter 2. 7 of Title 5 of Patt 4 of Division 3 of the Civil Code are repealed, as illustrated by strikeout text below.
1954.50. Thls ehaptet sha:ll be lf:ftoWft aed may be eited as the Costs. Hawlti:as Reaw HottSiag f..et. 1954.51. lr.s 1:Jsed ia this ehapter, the fellowiag temis ha,e the feD:owiftg ffleafttftgS:
(a) "Compllftble tlftits" .mell.fls reat:A! t:taits that have appro:Jafflfttely tfte same ltvfflg spaee , have the same ~er of bedrooms, a,re leeated is. the sftft'te or similar aetgheorhoods , 11.'ftel feature the same , Stfflliftf, er eqttal amenities aad hettsio.g semecs .
~ "Owe.er" iflehtt'.ies atty pcrsoe., aetiftg as priaeipaJ or throttgh ae. agent; hiwiag the figb:t te offer resideafHI. real property for rent; and iftell:ldes a predeeessM ia utterest te the OWfier, e:11:eept that this tcfm does aet i:B.ell:lde the ewtter er eperater of 11 .mebilchome par-IE; er the ewae:£ ef a meeileheme er his or her ageet.

Ee) ''PrEYa:ili:ng market reat" means the reaw rate that wottld. be 111:Jthomed pms't:Htftt to 42 U.S.G.f... 1437 (I), as eaJett1ated by the Ufti:ted Smtes Departmeat ef Hettsiag aae Urbae OC¥elepmeat parsmat to Part 888 of Title 24 of die Code of Federal R~tioes. @) ''Pttb!ie entity'' has tfte same meltft:ing as set feft:b. ift Seel!!oa 811.2 of the Go <'emmeat Goele.

Ee) ''Residen~ feti pfeperty" iflell:ldcs atty dwelli.ag er ttftit tha:t is uttcaeed fer ftttfflft:11 habitatiea. (~ "Teaa:eey'' utell:ldes the lawful oeettpatien of rreperty aee iflel1:Jees a lease or suelease . 1954.52. (a) l'>fotwithstaading A.ft) otftef pre'lfsion ef law, an ewfter of fesieentw real proi,erty may esmelish tbc inifHI. llftd all. sahseqticat rental .ffl:tes fof a dwelliflg or a l:lmt aeout whi:eh. any of the follewitig is el.'tle:
(1) It has a eertmc.te of eeeepaney issttcd after Febrtta:ry 1, 1995. (2) It bas alreaey been. e:ieempt frem the resiaefttitl rent eeatrel erdiaaaee ef a pttblie entity ee or befere Fcb:l!'tMl:l!f 1, 1995, ptttStHtftt t:e & leettl ecll:emptio:a fof newly eoftsfflleted l:!fHts. (3) (.A) 11: is alienable separate &em the title to 111:ty ethe:£ dwel:liftg ttftit Of is 11 9l:!bdwidea utterest in a sl:tbaivfflea, as speei:aeel ut subeli..-isiea (b), (a), e:r (f) of Seetiea 11004.S ef the Bttsiness aaei P-refessioas Gode.
(B) This paragmi,h aoes not apply to either ef the followiftg:
1 ~) A dwelliftg er 1:1ftit \\'fte.te the ·preeediftg t:ee&ney has eeeft teffltHlat:ed by the OWfier by aol:iee pl:lfsttae:t te Seetiea 1946.1 er has beett tefflliaated ttpoe a ehaage ift the temis of the tenllftey aotieea pttrsuaat to Seetioe. 827.
{ii) A eoadom:i:B::itlffl dwelliag or aeit that has ttot beeft sold sepMately by the subdmder to a eofta fide pttrehaser fer vall:le. The irubitl reftt amol:lftt of the lfflit fer f'l:lfPOSes of this chapter shall. be the lftwful ree:t ift effcet on May 7, 2001, tmless the :reftt llfflOttat is ger..emed by a difftteat pro-;risioft ef t:b.i:s ehftt,ttt. HO"Nev:e1, if n eofl:dom:iftium eweleg or l:lfti:t meets the erit:em of ('llfftgrttpb. (1) or (2) of sttbdivfflon (a), or if all the dwelliegs or wt:its e:11:eept oae hM•e beett sole sepM'lttely by the sabEH'l'ider te eoea fide ptt:rehasers fer valt1e, and the stibetY'ieer has oeettpicd that remaieieg 'Uft9ole eoadofl'lH'lRffl'l dwelling or Wlit ns his Of he! pfiBeipal rcsideftee fer at least oBe year aft.er the sttbdi'Yisioo. oeetmcd , th:ea sl:lbparagraph (A) of p~h (3) shall apr,ly to that l:lftsolEI eeedoa,iftil:iffi ewellfflg ortl:ftit.
(C) Wllere a dwelH:ftg Of wt:it ia which the i.fti:wd or 91:lbseql:leftt reeta,l rates are eofttrollce 1:,y aft ordiftaoee or eha:rter r,rer.1isiee ifl. effect oaj!fttlitey 1, 1995, the fellewiflg shall apply:
~ };.ft ewaer of real i,roper~ as desecibee ia this pHapph may estttblish the iaitial nftd al:l. sebseqttent ref!:tal rntes fer all e,astiftg and fte\\l t:erumeies ift effect ea Of after JanttMf 1, 1999, if t!lte tcftaney ifl. effect oa or afterJllffl!tff 1, 1999, was created behVeett Jamwy 1, 1996, aad December 31, 1998.
(ii} Gommefteing oa Janl:laty 1, 1999, aa &w ner of real property as ecsem,ee ie. this pltfftgnph may establish the iftitial aaa all stteSC'JUCf:lt reatal rates fer all aew teaftflEies if the prffietts teftltftey was in effeet ea Dceemeer 31, 1995. ~) The .iftitial refttal .rate for a dwelling or l:lfl:it as described ie. this p~b ie. wmeh the iaitial reatal rate is eeatro:Yed by an ordfflaaee er eharter pto".11:Sieft ia effeet onJft:fttlMf 1, 199§, may net?, \:lfttil}ltffl:lMY 1, 1999, e,eeeed the amol:lftt ealel:llftted pl:lfflfflat te 9ttbei·11sfoe (e) ef SeettoB: 19§1.53. Aa ewfter of resiaeB:tial real prepCt"ty as deseribed in th:is paragraph~. ttati!Jltftm:r, 1, 1999, esmblish the inibitl reatal rate for a Elwclliflg or tffltt oaly where the tenant has volttal:Mily vacated, 11:baftdoaed, et beea CYieted ptlfStHat te paragraph (3) ofSeetiea 1161 of the Cede of CiYil P-reeedttre.

Eb) Sttecwnsiee. (a) does not apply whe:te the ewaer has etherw:ise &g!!CCd by eee:tftet with a pttblie efttity ia eeft9itieration fer a eireet finae:eial eofttffl31:ltien or aay eteer ferms ef assist:11B:ee epeeiacd ift Chapter ~ .3 (eofflftl:ee.eiag wit!lt Section 6591 S) of Dmsioa 1 of Title 7 of the Co <'Cfftment Code . ~ Nothing i:ft this seetiea shall be eoastrttee to affect the wtherity of a pl:lblie eatity that may othCffi'!ee e:iast t:e .regulate or menitof the l:,asis fer efletiea . (cl) Thi9 seetioa Eloee aot apply to Mi'Y dwellmg or tteit that eofttfl:ias setioue healtl'l, safety, ere, or bttileiag eode flelatiens , e,eeltteiftg those caused by disasters fo:r wltteh a eiutien has beee. isstted by the appropriate gMe:mmeabll ageacy Mtd which nas remn:tfted ttaahat:ed fer st,t months or loagtt r,reeediftg the ". aeftfte, .
1954.5~. (~ Notwithstftftei:ftg aey other pre-l'isioe ofJ:n,w, as. &wee.r ohesideatis:l real preperty may esablish the initis:l renatl rate for a dwelli:ftg or un:it; aeer,t where ney of the fellowiag apf'Hes:
2 (1) The pre"lie1:1s teMeey Ms beea teffl'Uftated. by the owner by notiee pttr9ttftftt te Seetioa 1946.1 or has eeee. termiaated upoB a ehaage in the tefffls ef the teall.fley notieed purst1:Mit te Seet:ieft 827, e:Xeept a ehftftge peffllit.=ted by la%· in the amoMt ef reRt or fees. Fer the putpese ef this paragraph, the ewaer's te:1:mif.uttion or nofl:fe8:C'«lal of a eont:raet er reeord.ed agreeme:ftt with a ge-vefflfflenml ageaey d!:at prevides for a reftt limitation te it qualmed tefl:ftfl:t; shall be eonsmted as a ehaage in the terms of the tetlftftey pl:tfSt!ftftt to Seet:i:oft 827. (i..) la a j'Mi:stitetioa tflat eoaa:els by erdinaaee or ehltt'ter prevision tfle reftt:ti rate for a a-welling er Wlit, aft owner who teffl'Hftatcs er &ils te reaew a eoatraet er reeordca agreement ·,vith a gOW!fflffl:efttti ageftey that pr<Yffiles fer a rent limit:atiea te a q1:taliaed tenant may aet set aa ~ rent for three y-ea,rs fellawing the d11:te of the termiaatiea er nomenewal ef the eent:raet er agreement . For a:ny new tenafie, est:ablished et:Jtieg the three year period, the ree.tal rate fer 11: new teellftey establi3h.ed in t:hat weated a-welling er t!flit shall be at the same rate as the reet 1:tftder the tefffliftatcd er neereaewed eofttraet or reeerdeEi agreemeat with a ge,'\'Cfflfflenml ageaey that pro•iideEl fet-a reet 1:imil:9tion to a qttaliaed teftllftt, pltts any increases ethoreed after t:he termination or ellfteellstioe. of the eoatraet or recorded agrccmeat.
~ Subparagraph (A) does not apply to llftY new teaaeey of 12 meftths er mere dl!ffttiea est:abl!shed afterJafttla:ff 1, 2900, '.Ptlfltfflflt te the owner's eotit!ll:et or reeorded agreement witft a go¥efflffleftbtl age:ae, tfiat pro·ndes fer a rent limttati:en te a qualtaed tenant, 1:lflless the prier W:ellftey in that dwelliag or Ufti:t was pursuaftt te a eoru:eeewed er eftfieeled eoae:aet or reeordee agreemeftt with a gevel!ftmetiml aget1ey t:hat pte•ndes fer a reat limitatioa to a qualified tee:aat as set forth ie. that subpa:rapph.
(2) The awftCf bas otherwise agreed by eoetraet wit:h a p~lie eatlty in eoesiaC:1::atieB: fer a Elireet Bftllfteill:l eenwbutien er ftft' other femoi:s ef assistaaee specified ie. Chapter 4.3 (eommeeciag 'With Scetiea 65915) ofDi"lisiee 1 efT.icle 7 ef the GMemment Code. (3) The imtiftl .reaml rate fer a dweU.ing or 'tifti:t whose initial reatal rate is eontfellea by aft orcliftanee er ehartef pr<Y1isiet1 in effect enJaa1:ta:ty 1, 199§, fftft)' not 1:lfttilJMl\:IMY 1, 1999, e:Xeeed the amettftt ealeelated plif9\Hlftt te subd.Msiot1 (e). ~ Stiedir,iision (a) apf:'lies te, ftfla ioewaes, reeewal of the initial hmftg by the same teMnt, lessee, attthomed subtet1aat; er attthemed sublessee fer the eatire period of his er her eecttpaaey at the ret1tal rate estaeli9hed for the ~ hiring.
(e) The ret1tal nte ef a dwelling or l:tftit whose .initial ree:tit:l rate is eoB:tfoHed by OfEliB:aftee M eharter prevision in effeet Ofljftftttftf)' 1, 1995, sM:U, W!t:ilJllfflffl:!Y 1, 1999, be established in aeeeraaeee :witft this sttbEHYisioa. 'Where the pre¥i:otts teftaat has YOH:lfltarily vae1tted, ltbaB:doaee, er beeB: evietee pl:tfswt:Bt to pMagftph (2) of Seet:i:oa 1161 of Code of Cr.<il Preeedttre, aa eWfte.r of residee:tiftl real prope.rty may, ft6 mere ti-tan twice, establi3h the iaitiftl ree.tal rate fM a a-welling or lfflit iri: an ame'tfflt that is ae gt;eater thftft 1 § pereeftt mere thaa the reatal rate ffl: effect fer the immediittely preceding teaaB:ey er ift aa amOttftt that is 70 pereeat of the prer."a:iling fflflt'ket .reat fer eemparable tlf1:it:s, whichever amettftt is greater.

The imtial reatal :rate establishes ptl:f9t1ftftt te this sttbdivisiea fflftY net Stibst!Mte fer or replace iri:creases ffl: rental rates otherwise ll"lHftomed purs\:Htftt te lftw. 3 (a) (1) ~Jothiflg ia this seet:ioa or afl:y of:bet pwvisioa of lft'W shall be construed to preeftlele express esl:ftblisl-i:taent Hi a lease or renf:ftl agreemea:t of f:be reot:al rates to be appliea-hle ia: the e'i'efl:t the reat:al ttnit sttbjeet thereto is sttblet. ~fothiftg Hi this section shall ee eoftsl:ftled to imps:i:r the obligations of COfl.MCl:9 CfttCfC8 ifi:to peer to January 1, 1996.
(2) If the origfflal oeeup1u~t or oeeupaats who toolt possession of the a-.velliflg or uaft pttrsu1u1t to the reatal agreement with the o•.voer ao loagcr peffflanefl.tly resiele there, aft owner may ia:e:rease t:he rent by any amottftt a:lloweel by this section to a bt-Nfu! sublcssee or assigt1ee \'\ be did not reside at the dwclliag or ti:flit prior to JamMtty 1, 1996. (~ Thls subtlfrlffloft Eloes aot apply to partial ehaages Hi oeeu:pftftey of a dwelmig or t:lflit where oee or more of the oeetipftftt:s of the premises, ptlfstltitt to the a~eement with the owner pro•Rded ff>£ abor.-c, remft!fls an oerepaot ia: lawful possession of the e-welliflg or lttlit, or where 11 hffi·fti:l sttblessee er asstgttee who resided at: the dwdliftg e.e 't'l:tHt peer teJaffi:MM.f 1, 1996, .remams ift possession of the ewell:ie.g or Wlit. ~Jethi:ag eontaia:ed ift this seetioa sbaY be eoflsffll:ed to ea:lfti,ge or dimiaish an owner's tight to withhold eoaseat to a sublease or assigftment. (4) Aeecpl:ftaee of 1:cnt hy the OW'fief does aet opemte s,s a wai.-er er otherwise preveet eftfereement of a cw. enaat prob:iettia:g sttbleasc or assignment or as a waiver of Ml OWftet's rights to establish: the iftiti:id renbl:l rate, U0:1:ess the owfter 1':as .received wnttCft aetiee &om the ten1tfl:t that is pMty te the agfeemefl.t ftfl.cl thereafter aeeepted .rea:t. (e) Nethiftg Hi this seelion shall be eeastmed te affeet ftft) ethocity of a pttblie efttff}i th1tt ma, oth~e east to :f~te Of mofl:ttor the gfe\ffldS fer metioft . (ij This seetiea does eet apply to a:ay dwdlie:g Of uftit if all the fellowiag eoaElitioas a.re met:
(1) TI.te dwellifl:g er amt 1'Hts beea cited ifl. an ia:speetioa report by t:ae appfopmte govefflftleatal ageeey 11:s eofttMftiftg serioas health, safety, arc, or etlHEHftg code "vieltiieas. as eefined by Seetioa 17920.3 of tbe Health aftd Safety Gede, exeh:1elifl.g aa:y vielation e1tttaed by a diss,ster, (2) The etmtion was fsstted at least 60 d!tjs pt:i:or te the date of the vs,ellftey. (3) The eted •nolfttiea bad aot eeea nhatcEl weefl: the pfior teftnnt vae1tteel anel bad remtinecl tlfta-hated fer 60 df11 S er fer a loager pecioel of 1:iffle. I lewcv=er, the 60 day time pefiod ffiitY' he exteaded by the apprepfiate gev:efflfflent:al ageaey that issaed the eitfttiee.

Section 4.

If any provision of this Act or the application thereof to any person ot citcumstances is held invalid, that invalidity shall not affect other provisions or applications of the Act which can be given effect without the invalid provision or application, and to this end the provisions of this Act are severable. 4

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