Initial effects of Costa-Hawkins Costa-Hawkins Rental Housing Act

1 initial effects of costa-hawkins

1.1 vacancy control prior act
1.2 rent control elements denied cities
1.3 rent control elements retained cities

initial effects of costa-hawkins

the major purposes of act were: eliminate vacancy control , thereby reestablish intermittent role market forces (supply , demand) in setting rental price; and, exempt categories of rental units rent control, e.g., new construction, , single family dwellings , condominiums. exemption new units sought encourage housing supply.

vacancy control prior act

berkeley: dwight way rental.

most rent control ordinances (deemed moderate) limit owner s ability increase rent existing tenant. yet strict rent control regimes limited rent landlord charge on open market, is, after apartment became vacant voluntarily exit of prior tenant, or vacant cause eviction. hence, strict called vacancy control. controlled rental amount became specific not particular tenancy, specific rental unit.

under such strict regime, market forces excluded price determination (except exempt categories, such newly built units). prior enactment of costa-hawkins, such strict vacancy control had existed in 5 cities: berkeley, santa monica, cotati, east palo alto , west hollywood.

rent control elements denied cities

costa-hawkins preempted local laws allow vacancy decontrol , i.e., permit landlords establish initial rental rate dwelling or unit following voluntary departure prior tenants. preemption (abolishment of vacancy control ) phased-in on 3 years. accordingly, on january 1, 1999, went full effect.

the act additionally exempted municipal rent control kinds of dwelling units, namely, separately alienable units, i.e., single family houses , condominiums. act exempted new construction, i.e., dwelling units certificate of occupancy issued after february 1, 1995.

rent control elements retained cities

the power determine of elements of rent control (mentioned above) left cities act. cities remain in control of determining changes rental amount of tenancy, under constitutional limits. cities possess substantive jurisdiction regulate evictions, , owner s ability otherwise end tenancy. accordingly, cities prohibit owner terminating tenant without cause . in terminations, city ordinance may place costs on owner, , grant rights tenant, e.g., relocation allowance.

each california city has own independently enacted rent control ordinances, range across spectrum. counties in california may enact rent control laws, in accordance state law.