In this year’s mid-term election there was a proposition calling for something similar. California’s Proposition 10, Local Rent Control Initiative 2018; A yes vote would allow local governments to adopt rent control on any and all rental housing. The measure was defeated, so the state statue continues to have only limited rent control. There are now four states that allow some form of rent control on specific properties. In the case of Fisher vs. The city of Berkley California, the city, is limiting what a landlord can rent a property for and how much they are allowed to increase it annually. What this article does not tell you is if this only applies to those who are low income or on a fixed income, minorities, students, handicapped and seniors (Jennings, 2011). It also does not address the difference in housing types and amenities? The number of bedrooms, bathrooms, floors, the age of dwelling, condition, or even what may or may not be included.
The more significant question is, does this apply across the board? Since each dwelling is different and is built with different products (wood, stucco, brick) and carry different values. There is also location, location, location. The building owners pay different amounts for each of those properties, and people get into the rental business to make money, even if it is just enough to cover the mortgage, taxes, insurance, and upkeep. Having a rent ceiling could also affect its sale price.
Moreover, if it only applies to certain property and certain renters then would the landlord be able to make up the difference by increasing other tenants rents to cover the shortage? Alternatively, this could start to become some sort of discriminatory problem, if it applies to the individual. If you only have to control rent for specific renters, then your less likely to rent to them.
I do not think this article gives enough information to decern the constitutionality of the ordinance fully or whether or not rights are being violated.
Jennings, M. (2011).Real estate law(9th ed.). Mason, OH: Cengage.
California Proposition 10, Local Rent Control Initiative (2018) located: https://ballotpedia.org/California_Proposition_10,_Local_Rent_Control_Initiative_(2018) – Costa-Hawkins_Rental_Housing_Acthttps://ballotpedia.org/California_Proposition_10,_Local_Rent_Control_Initiative_(2018) – Costa-Hawkins_Rental_Housing_Act