September Town Hall Recap

Thank you to everyone who attended the Rent Control Town Hall on Friday, Sept. 13 to discuss Proposition 33 on the November ballot. The event, our third town hall this election cycle, was graciously hosted by the Pacific Southwest Association of REALTORS® at their office in Chula Vista.  

As a reminder, Prop. 33 would repeal Costa-Hawkins and expand rent control.  

What it means for you: 

• Local jurisdictions will have free rein to impose and expand rent control. 

• Will prohibit rent increases upon vacancy (also known as vacancy de-control) by eliminating the owner's ability to charge the market rate when a tenant vacates the unit. 

• Imposes rent control on all properties including single-family homes and condominiums by eliminating AB 1482 protections. It would also allow rent control on newly constructed housing. 

Here's a recap of the key points discussed by our speakers: 

Jordan Marks, San Diego County Assessor-Recorder-Clerk, emphasized the massive threat to property values and public services if Costa-Hawkins is repealed. With over 770,000 single-family homes and condos in San Diego County, and 40% not owner-occupied, Marks explained that removing Costa-Hawkins could jeopardize a third of the county’s property tax base, leading to significant cuts in essential services like police and fire departments. Marks also noted that rental rates have increased by 4% across the county, partially due to uncertainty surrounding the measure. Some housing providers are even choosing to keep units vacant, waiting for market conditions to stabilize. 

Rich D’Ascoli, CEO of the Pacific Southwest Association of Realtors®, discussed how rent control and vacancy decontrol would negatively impact property owners. He noted that as one example, many Navy personnel rent out their home while they are deployed, while fully intending to return to San Diego. With Prop. 33 allowing jurisdictions to impose rent control and restrict evictions on single family homes, this measure threatens a military servicemember’s ability to return and live in the house that they own, he said.  

D’Ascoli warned that as demonstrated in markets like New York, rent control leads to tenants staying in homes for decades – preventing those in need from accessing affordable housing.  

He also noted that the campaign to defeat a proposed rent control measure in National City was expensive – an estimated $50 per voter – and despite that, it was still a close vote. If Prop. 33 passes, we could see measures like this pop up in local cities – requiring more expensive fights, he said.  

Lori Holt Pfeiler, CEO of the Building Industry Association of San Diego, stressed that a healthy housing market is crucial for healthy communities, and rent control only disrupts this balance. With capital already difficult to secure in the region, rent control would further discourage new construction. This would ultimately reduce the availability of affordable housing, including naturally occurring affordable housing, she said.  

The BIA PAC has voted to oppose Prop. 33, she said. 

Christine La Marca, CalRHA and SCRHA Past President, highlighted the significant financial risks to owners if Costa-Hawkins is repealed. She pointed out that cities would be likely to consider local rent control measures – echoing D’Ascoli’s comments that such measures would be costly to fight if they were expanded to the properties currently exempt under Costa-Hawkins.  

La Marca explained how repealing Costa-Hawkins would restrict property owners' rights to reset rents or evict tenants, making it harder to maintain and renovate rental units. Some investment dollars are already shifting to other markets, even as far as Canada, due to California's increasingly restrictive housing policies, she said. 

La Marca also introduced a special calculator on the CALRHA website that helps property owners learn how much they would lose if vacancy decontrol is eliminated. She warned that the longer units remain occupied at lower rents, the harder it becomes to raise rents to market levels when tenants eventually move out. 

Molly Kirkland, SCRHA Director of Public Affairs, moderated the event. She discussed the costly nature of these rent control battles and the importance of raising funds to fight back. Kirkland emphasized the need for ongoing financial support to continue the campaign to defeat Prop. 33. 

In closing, we urge you to contribute to the SCRHA Issues PAC*. Your financial support is critical in helping us protect property rights and fight against the dangerous rent control measure, Prop. 33. You can mail a check to our office payable to the SCRHA Issues PAC or click here to donate. 

Thank you for your continued support and engagement in this critical issue.