REJECTED

What it would do:

Allow cities to introduce new restrictions on market rents or expand existing rent control policies.

What it would cost the government:

It depends. If cities across the state enact new rent control laws or expand old ones, that could result in less construction and reduce rental property values, resulting in lower tax revenue. But it could also allow existing tenants who save on lower rent to spend more on consumer goods, resulting in higher sales tax proceeds. And then again, it’s possible that very few cities will respond with new laws at all, in which case the effect will be negligible.

Why it is on the ballot:

In 1995 the California Legislature passed a statewide clamp down on rent control. Cities could no longer restrict rent increases on apartments built after 1995 or on any single family homes. Plus, any city that wanted to have rent control on the books had to allow landlords to raise rents as soon as a tenant moves out. Now that the state is facing an affordable housing crisis, some housing advocates want to give cities a tool to put a legal lid on rents.”

Full text of Prop. 10

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