California voters have rejected Proposition 10, which proposed loosening state rent-control limits and repealing the Costa-Hawkins Rental Housing Act, which prevents cities from applying rent control to residential properties built after 1995. With 97% of precincts reporting as of Nov. 7, 61.7% of voters chose no and 38.3% yes.
In the wake of the measure’s defeat, the Los Angeles Business Council, which opposed Prop 10, urges California policymakers “to get back to the important work of exploring smart, effective, and vetted policy options to better serve the people of California.”
According to the Council’s statement, legislation focused on “TODs, high-density development, and affordable units” would help the state reach its housing goals. This includes last year’s passage of SB 35, which simplifies the multifamily approval process.
The National Multifamily Housing Council (NMHC) also considers Prop 10’s defeat a “critical victory.”
“The debate over Proposition 10 highlighted the very real nature of the housing affordability crisis in California and that voters understand that more rent control is not the answer,” says Jim Lapides, vice president of strategic communications at the NMHC.
According to Lapides, the NMHC sees a “three-pronged” approach to addressing housing affordability:
More supply. According to a study the NMHC conducted with the National Association of Home Builders, almost a third of development costs come from regulations. “If we don’t remove red tape and expedite the construction of more housing, we’ll never be able to dig our way out of this shortage,” Lapides says.
Creative solutions to bring the price point down. Lapides suggests that state and local governments take the lead in bringing down prices for affordable housing, as California did with the passage of Proposition 1, a bond designed to create more affordable housing. “It’s impossible to do ground-up development for affordable housing without tools to bring the price point down,” he says.
Targeted subsidies to the neediest families. “Many families are struggling today,” Lapides adds. “Targeted subsidies to those who need it the most will help provide immediate relief.”