HISTORY OF THE COSTA-HAWKINS RENTAL HOUSING ACT

The Costa-Hawkins Rental Housing Act, passed in 1995 after a ten-year effort,

remains a crucial protection for California property owners and future renters

against extreme and damaging local rent control ordinances. Authored by State

Senators Jim Costa and Phil Hawkins, it emerged in response to growing

concern over cities imposing draconian rent control policies that stripped owners

of their basic rights and discouraged investment in rental housing, ultimately

threatening future housing availability for renters.

Prior to Costa-Hawkins, cities like Santa Monica, Berkeley, and San Francisco

went so far as to impose vacancy control, a policy that caps rents permanently,

even after the tenant moved out. This forced landlords to rent their properties at

below market value indefinitely, preventing them from covering rising costs or

earning a fair return on their investment. Many owners faced mounting expenses

and no way to recoup them, were forced to sell their properties, often at a loss, as

rental properties were no longer seen as a viable investment.

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