The Hidden Dangers of Proposition 10

In a state where the population continues to increase substantially, housing availability has become a pressing issue. Proposition 10-- an initiated state statute on the 2018 ballot, which if passed,  would repeal the Costa Hawkins Rental Housing Act. This statute, enacted in 1995, has placed a limit on rent control throughout California. Prior to the act, local governments were allowed to freely permitted to enact rent control.

Looking at California's current situation, the state is in need of housing production rather than protection. Repealing the Costa Hawkins Rental Housing Act and allowing cities and local governments to establish their own control would only limit supply, which is something the state is already struggling with.  In turn, this may also discourage property owners from maintaining units.  

While the Proposition aims to protect minorities from experiencing housing termination or displacement, the repeal may potentially result in the opposite. It allows for the regulation of single family homes and puts bureaucrats in charge of housing. It may place as many as 539 rental boards in charge of housing, giving government agencies unlimited power to add fees on housing, which in turn would increase rent and make homes and apartments more expensive. These boards may have unlimited power to set their salaries and benefits, while adding fees to housing that will be passed on to tenants in the form of higher rents. The impact this would have on minorities disproves the need for rent control, as it would result in higher rent regardless.

If local governments chose to enact new rent control laws or amend existing ones, local rent boards would face increased regulatory costs. Depending on local government choices, these costs could range from very little to millions of dollars per year, which would ultimately be paid by renters. The repeal would result in fewer property taxes paid by landlords, but in turn, an increase of sales tax paid by renters. These increases costs could result in less money for schools and emergency services, reduced new home construction, and a loss of thousands of well-paid construction jobs.

As a student coming from a home-owning family, I believe that the impact of Proposition 10 may be devastating. Not only will tax dollars be funneled away from my education, but the home that my father spent the entirety of his life in America saving up for may no longer be protected. My family is not the only one in such a situation. This repeal may increase gentrification, driving out the minorities the Proposition aimed to protect. California residents are in need of more homes, not more rent.