Updated 6/5/2023

Senate Bill 466

The proposed Senate Bill 466 was a major concern for multifamily property owners throughout California. This bill, authored by Senator Aisha Wahab, D-Hayward, would have imposed strict rent control on single-family homes, newly constructed apartments, and condominiums. The hearing by the Senate Judiciary Committee took place on April 18, 2023, at 1:30 p.m. The bill failed to pass on May 30th, 2023, with only 15 senators voting to approve, 16 voting against, and nine abstaining. In order to pass, the bill needed 21 votes.

 

Costa-Hawkins Rental Housing Act

The Costa-Hawkins Rental Housing Act is a state law that restricts local rent control regulations. It exempts rent control in any type of dwelling constructed after 1995 or earlier in cities that implemented rent control prior to 1995. It also exempts single-family houses and condominiums of any age from local rent regulation. However, Senate Bill 466 would have significantly weakened many of these safeguards.

 

If the bill was passed, it would have resulted in more attempts to alter or repeal Costa-Hawkins. This could allow local governments to establish rules that prohibit vacancy de-control or the right to set the rent at market rates when there is a vacancy. This would have serious ramifications for property owners and could result in higher rental costs.

 

Senate Bill 466 and changes to Costa-Hawkins could lead to further attempts to revise or eliminate the act entirely.

 

Opposition Towards the Bill

Those in opposition to the bill argue that local restrictions on rent increases for newer construction will force housing providers out of the rental housing business, discourage the construction of new housing developments, and exacerbate California’s ongoing housing crisis.