COSTA-HAWKINS UPDATE: INITIATIVE PICKS UP STEAM
Written by Peter Strauss of Iconic Investments
The ballot initiative to repeal the Costa-Hawkins Rental Act is moving forward. Over the last few months, advocacy groups, like the AIDS Healthcare Foundation, have been actively collecting signatures. So far, they have collected 25% (91,470) of the required 365,880 signatures.
With such huge momentum, it seems certain that the repeal initiative will be on the November Ballot. What would a repeal mean for landlords? It would mean you could no longer raise rents on units when they become vacant and local governments could impose rent control on any type of rental property regardless of how old the property is. (Read Iconic's articles on the Costa-Hawkins repeal efforts and AIDS Healthcare Foundation president Michael Weinstein's campaign to put the issue on the ballot.)
GROWING THREAT
Rising interest rates aside, the greatest risk to landlords currently is ever-increasing governmental regulation. It seems like politicians, the city and advocacy groups are trying to box in landlords, who are all presumed to be greedy.
First, it was the earthquake retrofit requirements, then the mandatory rent registry program and a trash monopoly created by city council members, and now the repeal of Costa-Hawkins.
And it's no coincidence that the City of Los Angeles now has all of your rental information. That will ensure quick implementation of a Costa-Hawkins rollback.
Meanwhile, another ballot initiative is currently being proposed to get rid of the Prop 13 property tax cap on commercial and industrial buildings. Are apartments next?
The Costa-Hawkins Ballot Initiative is real. Waiting to see if Costa-Hawkins gets repealed could cost you money -- values will drop overnight. If you’re thinking of selling, do it now at the height of the market. Don’t wait!
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Iconic Investments
16530 Ventura Blvd Suite #409 Encino, CA 91436
www.iconicinv.com