As it stands, Costa-Hawkins has two main provisions: 1. It protects a landlord’s right to raise rent to market rate once a tenant moves out. 2. It prevents cities from establishing rent control on units constructed after February 1995. In San Francisco, only construction older than 1979 can be rent-controlled.
In January, AB 1506, which would have completely repealed Costa-Hawkins, failed to pass the California Assembly’s Housing and Community Development Committee. Supporters of the bill now claim they have enough signatures to qualify an initiative to repeal Costa-Hawkins on the November ballot; they are calling it the “Affordable Housing Act.” Repealing Costa-Hawkins puts the future of the San Francisco rental market in the hands of city legislators and local voters — most of whom are renters. Not only would it discourage new construction (a fact backed up by a 2016 report from the legislative analyst’s office), it would also worsen the current housing shortage and scare off development. For multi-unit property owners, it puts control over your own properties in peril.
As the property management company of choice among Bay Area property owners, with deep expertise in local laws and ordinances, Gaetani is working on your behalf to stop the repeal of Costa-Hawkins.