This article is from Connect California: Commercial Real Estate News. Click here for more information.
California Governor Gavin Newsom is opposed to Proposition 21, the rent control measure on the Nov. 3 statewide ballot. But the Governor said he supports Proposition 15, the split-roll property tax measure, which would change the tax assessment of commercial and industrial real property to current market value.
Proposition 21 would dismantle the Costa-Hawkins Rental Housing Act, the single most vital California law for rental housing providers, notes the California Apartment Association (CAA). CAA writes, “If Proposition 21 passes, local governments will bring back vacancy controls, capping rents between tenancies; they’ll also apply local rent control ordinances to newer apartments — as soon as they turn 15 years old — and to a greater number of condos and single-family homes.”
Gov. Newsom said, “In the past year, California has passed a historic version of statewide rent control – the nation’s strongest rent caps and renter protections in the nation – as well as short-term eviction relief. But Proposition 21, like Proposition 10 before it, runs the all-too-real risk of discouraging availability of affordable housing in our state.”
Gov. Newsom also noted he’s long endorsed the concept of a balanced “split-roll” property tax reform as a matter of fairness, as long as residential property owners and small businesses are protected. Gov. Newsom indicated he supports Prop 15 because: “it’s a fair, phased-in and long-overdue reform to state tax policy, it’s consistent with California’s progressive fiscal values, it will exempt small businesses and residential property owners, it will fund essential services such as public schools and public safety, and, most importantly, it will be decided by a vote of the people.”