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A Rent Cap is NOT Rent Control, says California’s Prop. 33 Campaign

LOS ANGELES, August 02, 2024 /BUSINESS WIRE/ --

A new limit on rent increases taking effect this month in Los Angeles and across the state has housing and rent control advocates from AHF’s Housing Is A Human Right (HHR) and the Yes on Proposition 33 campaign sharply criticizing the 2019 California bill (AB 1482) which caps rents on tenants in buildings not covered by other and/or more restrictive rent stabilization ordinances (RSOs) as flawed legislation that more accurately should be called the Landlord Protection Act.

As of August 1st, landlords of non-RSO buildings in Los Angeles and elsewhere in California will be permitted to raise tenant rents up to a maximum of 8.9%. When enacted into law, the limit or cap in the bill, 5% plus the Consumer Price Index or CPI, set a new floor for rent increases around 10%--one that many housing advocates saw then and see now as far too high.

“Tenants deserve better than a 10 percent cap when cities with true rent control have as low as 3 percent or 4 percent increases,” said Susie Shannon, campaign director for the Yes on Proposition 33 campaign. “What’s best for tenants is to give them control at the local level to keep rents lower as opposed to the State of California keeping the rent increases close to a maximum 10% increase. That’s what Prop 33 will do. It puts tenants and local communities in the driver’s seat to decide if rent control is right for their own local California communities.”

Since 2019, the average monthly rent on a two-bedroom apartment in Los Angeles went from about $1,750 up to $2,926 in 2024.

Proposition 33, sponsored by AIDS Healthcare Foundation (AHF) and endorsed by more than 100 elected and formerly elected officials in California, is just 23 words: "The state may not limit the right of any city, county, or city and county to maintain, enact or expand residential rent control.”

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