We want to make it abundantly clear. JohnHart Real Estate is a hard “no” on California rent control measure Proposition 33. If you missed our CEO and principal broker’s powerful message on this decision, allow this blog to elaborate on why we so passionately oppose this deceptive measure. 

Photo credit: Envato

Currently, several cities across Southern California are under some manner of rent control including many intimately familiar to our agents. Los Angeles is among those. 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 us to our first point.

There’s No Guarantee of Stricter Rent Control Laws Under Proposition 33

Let’s say you’re just a staunch believer in California rent control and there’s no way we’re going to sway you from that belief. Proposition 33 doesn’t actually establish any rent control laws itself. It only aims to repeal Costa-Hawkins. Beyond that? It’s anyone’s guess. 

By turning full control over to the cities, rent control may become stricter. Or it may become more relaxed. But all that the passage of Proposition 33 guarantees is that California rent control as we know it, including its restrictions, will be dissolved. Proponents assume this will open the gates for stricter rent control laws. But that’s a pretty big assumption. 

Photo credit: Envato

The People Have Spoken… Twice

Experiencing deja vu? You’re not alone. 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 Proposition 33 is a Controversial Figure in Los Angeles Politics

That brings us to our next point; AHF 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. Tenants of the building claimed it suffered from:

• Inadequate security
• Malfunctioning elevators
• Pest infestations
• Power outages
• Safety hazards
• Water outages

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, AHF’s reputation speaks for itself.  Is this who we want to rewrite California rent control laws? 

Rent Control Doesn’t Work

Photo credit: Envato

But ultimately, the reason that JohnHart Real Estate proudly stands against Proposition 33 is because 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 us. Take it from seasoned economists who have been warning us about the slippery slope of rent control laws for years. 

So, you can trust the healthcare non-profit that, for some reason, is very invested in overturning California rent control standards. Or you can trust the economic experts, real estate professionals, and countless small-time landlords and single-family homeowners who are joining us in saying “no” to Proposition 33.