Why Prop 33 is a Dangerous Proposition for Housing and Property Owners

How Proposition 33 Could Make Things Worse

1. Reducing Housing Supply: Rent control discourages developers and investors from building new homes. With fewer homes being built, the state’s housing shortage will only get worse. Experts agree that California cities already struggling with limited housing supply will see even fewer homes built if Proposition 33 passes.
   
2. Removing Rental Units from the Market: Landlords can take rental properties off the market. They may also change them into private homes to avoid rent control. This would further shrink the available rental housing supply, making it harder to find a place to rent.
   
3. Increasing Costs: Proposition 33 allows local governments to add new fees and restrictions, driving up the cost of housing. These added costs are often passed on to tenants, making it more expensive to rent or buy homes.

Repeal of the Costa Hawkins Rental Housing Act

One of the most concerning aspects of Proposition 33 is that it would repeal the Costa Hawkins Rental Housing Act. This important state law protects property owners.

It stops rent control on newer homes. It also lets landlords raise rents to the market rate when a tenant moves out. If passed, Prop 33 would be one of the most damaging ballot measures Californians have seen in years by adding vacancy control.

Without the protections of Costa Hawkins, cities and counties could impose strict vacancy control, preventing landlords from adjusting rents after a tenant leaves. This makes rental properties less attractive investments and could further reduce housing availability.

Economic Impact: Lower Home Values, Higher Costs

Proposition 33 could also harm homeowners by reducing property values. Research from MIT shows that extreme rent control measures can lower home values by up to 25%. For Californians who rely on their home’s equity, this would be a significant financial loss.

Additionally, Proposition 33 could block over 100 state laws that help make it easier to build affordable housing. By discouraging development, the proposal would make it harder for working families, seniors, and veterans to find affordable homes.

Who Opposes Proposition 33?

A broad coalition opposes Proposition 33, including both Democrats and Republicans, housing advocates, business groups, and veterans’ organizations. Opponents include the California Chamber of Commerce, California YIMBY, and prominent leaders like Senate President Pro Tem Emeritus Toni Atkins and Assemblymember Buffy Wicks. These groups agree that Proposition 33 will make the housing crisis worse by reducing housing supply, increasing costs, and stripping away vital protections for homeowners and renters.

What You Can Do to Protect Your Property

If you own property in California, Proposition 33 could threaten your investment by limiting your ability to raise rents to market levels and reducing your property’s value.

To protect yourself:

• Stay Informed: Keep up with developments on Proposition 33 and its potential impacts on property owners.
• Get Involved: Join local property owner associations, like the Apartment Association of Greater Los Angeles (AAGLA), and contribute to campaigns working to defeat Proposition 33.

Vote No on Proposition 33

Proposition 33 may sound like a solution to California’s housing problems, but it will likely do more harm than good. By reducing housing supply, raising costs, and repealing critical protections like the Costa Hawkins Rental Housing Act, this proposition could worsen the housing crisis. To protect California’s future, we urge you to vote No on Proposition 33.

Additional Resources

• FAQs on Proposition 33: Learn how Proposition 33 could affect renters, homeowners, and property investors.
• Contact AAGLA: Get more information on how to protect your property at www.aagla.org.