1/8/18 UCC Government Affairs Press Release

Sherman Oaks, CA – The United Chambers of Commerce Government Affairs Committee passed a motion opposing efforts to repeal the Costa-Hawkins Rental Housing Act. The motion was passed by unanimous vote at the UCC’s Governmental Affairs Committee meeting on Monday, January 8th, 2018.

The Costa-Hawkins Rental Housing Act places limits on the types, and extent, of rent control that municipalities may enact. The Act places three primary restrictions on rent control legislation.

It prohibits rent control on new buildings. Apartment buildings constructed prior to Costa-Hawkins’ enactment remain eligible for rent control legislation. But any housing constructed after the Act’s signing into law are exempt from any rent control efforts.

It prohibits rent control on single-family dwellings. This prevents municipalities from applying rent control restrictions on single-family dwellings, such as property owner renting out a secondary house for additional family income.

It prohibits “vacancy control”. Prohibiting “vacancy control” means that municipalities cannot prohibit landlords from raising the rental rate for a particular unit up to market rates after a tenant vacates the property. This is different from other styles of rent control, which limit rental rate increases within the duration of a tenant’s occupancy.

The motion to oppose the reveal of the Costa-Hawkins Rental Housing Act followed a presentation by United Chambers Vice-Chair, Horace Heidt. Following discussion, the motion passed unanimously.. with 14 in support, no opposition, and no abstentions.