State Legislation: AB 1506 Costa Hawkins Repeal

State Legislation: AB 1506 Costa Hawkins Repeal

Updated May 25

The Costa-Hawkins Act of 1995 put statewide limits on the rent-control ordinances that local governments are allowed to enact. The law, passed in 1995, prohibited rent control on newly constructed residential housing starting in 1999. It also guaranteed owners of rent-controlled buildings the right to raise the rent to market rate for new tenants when former tenants moved out voluntarily.

Repealing Costa-Hawkins would allow local governments everywhere in California to enact new rent-control laws on any type of rental property, even your own home or condo, if you chose to rent it. Because there’s a veto-proof super-majority in the Legislature, the owners of rental housing are suddenly faced with the prospect that their entire investment could be at risk. Even more of them may decide to get out of the business by evicting the tenants and converting the rental units to condos, or selling the property to a developer.

No one with any sense is going to buy or build rental property in California while state lawmakers are proposing to unleash rent control. The conversation alone could reduce the supply of rental housing and discourage housing growth in general, impacting an already extremely low housing stock.


STATUS: Asm Housing and Community Development (No date)

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