ACTION ALERT – Tell Mayor Garcetti that Rent Control is not a solution to our Housing Crisis!

Posted April 24th, 2018 | Status:


ACTION ALERT – Tell Mayor Garcetti & LA City Council that Rent Control is not a solution to our Housing Crisis!

On the steps of City Hall yesterday, Los Angeles Mayor Eric Garcetti and Councilmember Mike Bonin announced at a press conference their support for repealing Costa-Hawkins which would enact rent control policies across California. Supporters at this conference also stated that there are enough signatures to place a Michael Weinstein bankrolled Costa-Hawkins repeal measure on the November 2018 ballot. Rent Control is a serious threat to our economy and jeopardizes BizFed’s goal of lifting one million LA County residents out of poverty by the next decade.

Here is BizFed’s statement about yesterday’s press conference:

“Our city and our state are in the midst of a housing crisis and it’s clear that the Weinstein’s initiative will make matters worse. This poorly-written measure poses serious threats to affordable housing development, depreciates the value of single-family homes, reduces local and state funding by as much as $1.3 billion annually, restricts the legislature from fixing unintended consequences, and costs taxpayers for lawsuits brought forth by proponents of the measure. This initiative is not the answer to our housing challenge. Rent control does nothing to make housing more affordable.  Just look at the unaffordable cities that have it now like Santa Monica and West Hollywood.  Rent control allows some people to have super low rent because NEW renters are subsidizing their costs, and it disincentives the building of new rental properties.  The only way to fix our housing crisis is to build more housing.”

We need two actions from BizFed leaders TODAY!

1) Write to the Mayor Garcetti and LA City Council and tell them to actually get some of those units built that they’ve been talking about as that would do more for LA residents than expanding a failed policy like rent control.  Feel free to use the background information and materials linked below.

CLICK HERE to send your organization’s letter to Mayor Eric Garcetti

2) Join the Californians for Responsible Housing coalition. Thanks to Beverly Kenworthy & Fred Sutton,California Apartment Association for informing us that there is a coalition growing to stop a repeal of Costa-Hawkins and rent control statewide. Distribute to your networks to get the word out to mobilize and defeat this initiative on November 2018.

CLICK HERE to join the growing coalition to defeat statewide Rent Control in 2018 “Stop the Housing Freeze”

CLICK HERE for additional background on the initiative 



A Costa-Hawkins Repeal and enabling statewide rent control policies will not make rental housing more affordable for lower-income renters, all it would accomplish is exacerbating California’s current housing crisis.

  • Does Not Target Most Vulnerable. Economists agree that this measure will lead to bad public policy for a variety of reasons: It will reduce the amount of housing available by constraining new construction and encouraging conversions of existing units to condos; Poorly targets any benefits to lower income renters; and Promotes sprawl and housing discrimination.
  • Does Not Increase Housing Supply. The State’s LAO points out that expanding the number of housing units covered and prohibiting landlords from resetting rents to market value for new tenants will not increase the supply of housing in CA and likely would discourage new construction in the state.
  • Less Revenue for State and Local Government. The unintended consequences of this measure will lead to economic output losses exceeding $5.7 billion, employment losses exceeding 38,000 jobs, and combined state and local revenue losses of up to $1.3 billion annually due to reduced property values and less construction-related economic activity in the state.
  • Potential cuts in key state and local services. The lost $1.3 billion in state and local revenues would significantly lower funds available for health, in-home healthcare, public safety and other key state and local services.
  • Revenue losses to the state general fund could top $690 million. This initiative would reduce funds for the University of California and Cal State University systems, Medi-Cal, state highways and vital transportation projects.
  • Local property taxes set aside for schools could also drop by as much as $400 million annually. In most years, that money would be back-filled by the state general fund. But in some years, the reduced property tax revenues will not be fully restored, causing schools to take a financial hit.


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