ACTION Apartment Association - Will California "cure" the housing crisis by repealing both Costa-Hawkins and the Ellis Act? Nope.

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Will California "cure" the housing crisis by repealing both Costa-Hawkins and the Ellis Act? Nope.

Will California "cure" the housing crisis by repealing both Costa-Hawkins and the Ellis Act? Nope.

07/09/2018 9:09 AM | Margaret Fulton (Administrator)

One of the more depressing tricks employed by people who favor more government control of everything is this: Put government controls on a business, which causes problems, and then use the problems as a justification for more government controls.

It's like trying to reverse a case of alcohol poisoning with a jug of moonshine.

Nowhere is the "here, drink this," cure more discouraging than in the housing market. Just recently, Assembly member Richard Bloom (D-Santa Monica) and two co-sponsors introduced AB 1506, a bill to repeal the Costa-Hawkins Rental Housing Act.

The Costa-Hawkins Act put statewide limits on the rent-control ordinances that local governments are allowed to enact. The law, passed in 1995, prohibited rent control on newly constructed residential housing starting in 1999. It also guaranteed owners of rent-controlled buildings the right to raise the rent to market rate for new tenants when former tenants moved out voluntarily.