CA Bill AB 1506 Repeal of Costa Hawkins on State Agenda

Attention landlords, developers and real estate professionals. As a reminder, CA Bill AB 1506, is on the hearing agenda in California’s state capital today. California’s 1995 Costa-Hawkins Rental Housing Act, sets the tone for rent control in CA as we know it today. Of significant importance, is the Act’s provision, which prevents local governments from imposing rent control on “new construction” or apartments constructed and possessing a certificate of occupancy, issued after February 1st, 1995. While California’s soaring housing costs, lack of inventory, homelessness, and displacement of families is undeniable, it is likely that repealing the act will also bring new construction to a grinding halt. Not exactly an ideal impact, at a time when housing inventory is at an all time low, and new units are desperately needed. Have you considered the consequences a repeal may have on you or your clients?