$50 Million Spent On Campaigns For And Against Proposition 21
LOS ANGELES (CBSLA) -- Many cities in California already have some form of rent control, but Proposition 21 would expand that statewide, limiting how much landlords can set and raise rents.
Michael Weinstein, head of the AIDS Healthcare Foundation, a prominent backer of the proposition that will be on the November ballot, says the housing crisis will continue once dramatic rent goes unchecked.
The California Apartment Association representing landlords oppose Prop. 21, claiming it will make the crisis worse because investors won't want to build new apartments.
"Opponents say the very fact that you do rent control will actually reduce the number of rental units and reduce the investment in rental housing and affordable housing," says Fernando Guerra, a Political Science Professor at Loyola Marymount University. "While the intention is good, the reality is that it'll make the rental environment even much worse and actually end up increasing rent."
The "Yes on 21" campaign said the proposition prevents large equity firms that own several properties from unfairly increasing rents for tenants.
Landlords with one or two single-family homes would not be impacted by Prop 21.
Backers and opponents are spending $50 million on campaigns ahead of the ballot vote.
