Oppose The Housing Freeze

Due to COVID-19, California is now in a recession that could last years. The shuttering of businesses has caused record unemployment and depressed sales tax revenues, which fund many vital local services. Property tax is also at risk as the housing market faces severe strain. Michael Weinstein's Housing Freeze will only make matters worse by further depressing property values, discouraging new investment in rental housing and exacerbating a long-standing housing affordability crisis in our state.

OPPOSE HOUSING FREEZE

Oppose Weinstein’s Housing Freeze

Flawed Housing Freeze Initiative STILL Makes Our Housing Crisis Worse

Assembly Bill 1482

Governor Newsom and the Legislature, with the support of numerous stakeholders, recently passed some of the strongest statewide rent control and renter protections in the nation. Assembly Bill 1482, which became law on January 1, 2020, ensures renters will not face extreme rent hikes or be unfairly evicted from their homes. The new law also provides stability for property owners. It ensures the rental housing supply is not diminished and housing continues to be built.

The Flawed Initiative

Undermining this newly-enacted law, Michael Weinstein is pursuing a flawed statewide initiative that would worsen California’s housing crisis. Ignoring the legislative process and the will of the voters, his latest Housing Freeze initiative is virtually the same as 2018's Prop. 10, which voters rejected by nearly 20 points. That measure would have allowed for extreme rent control to be enacted in local communities.

What Initiative Does:

Repeals Existing Housing Laws and Undermines Strongest Statewide Rent Control Law in Nation.

Repeals significant portions of our state’s rental housing law (Costa Hawkins), including single family home exemptions, while undermining California’s newly-enacted statewide rent control law.

Enables Permanent Price Controls, Even on Single-Family Homes and Condos.

Opens the door for permanent price controls on all types of housing units.

The Initiative Contains:

No funding for affordable housing or a requirement that it be built
No specific provisions to reduce rent
No specific protections for renters, seniors or veterans

Why It’s Bad for California:

01

Reduced Availability of Affordable and Middle-Class Housing.

Independent academic experts from Stanford and U.C. Berkeley agree extreme rent control policies discourage new construction and reduce availability of affordable and middle-class housing, driving up rents for many Californians.
02

Grants New Powers to Regulatory Bodies to Impose or Modify Rent Policies – Without Public Oversight.

The initiative will change existing law to allow extreme rent control regulations and rules to be locally- enacted by unelected rent boards. These boards could change the cost and availability of housing with no requirements that they seek public input or that they hold a public vote.
03

Eliminates Homeowner Protections.

The initiative allows regulators to tell single-family homeowners how much they can charge to rent out their homes – even if they just want to rent a single room. Homeowners will be subject to regulations and price controls enacted by unelected boards.
04

Cannot Be Easily Changed Without Another Statewide Initiative.

This initiative can only be amended by the legislature with a 2/3 vote and only to further its purpose. Another ballot measure would be required to change any substantive problems.
Paid for by Californians for Responsible Housing, Sponsored by California Apartment Association. Committee Major Funding from Equity Residential; Californians for Responsible Housing - General Purpose Committee; and Essex Property Trust and Affiliated Entities
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