Mayor of San Jose rejects expansion of rent control

San Jose Mayor Matt Mahan has spoken out against a ballot initiative in November that would massively expand rent control to all housing in California.

For decades, state law prohibited cities from capping rent increases on single-family homes and apartments built after 1995. Proposition 33 would repeal that law and allow cities to control rent prices for new tenants. Mahan and 22 other mayors across the state face fierce opposition to the idea.

Tenant advocates warn that as time goes on and new housing is built, rent control will be applied to fewer buildings. Opponents argue that repealing the Costa-Hawkins Rental Housing Act of 1995 would free cities from the obligation to build more affordable housing.

“Too many families struggle with high housing costs,” Mahan said in a statement from the mayors’ coalition. “As mayor, I am focused on ensuring that San Jose builds new housing downtown and near fast, reliable public transportation. Prop 33 would make it harder for San Jose and the state of California to meet our affordable housing goals and help families struggling with skyrocketing housing costs.”

Proposition 33 is the latest version of a ballot bill that voters blocked in 2018 and 2020. Opponents say it would lower property values ​​and hamper the construction of new homes while increasing prices for existing housing.

Proponents, meanwhile, argue that unreasonable rent increases would push too many residents to the brink of homelessness – and that the measure would return legislative power to local elected politicians.

One of the proponents of this measure is Sandy Perry, vice president of the South Bay Community Land Trust Board.

“For someone who claims to care so much about homelessness, Mayor Mahan taking a stand against Prop. 33 is just wrong,” Perry told San José Spotlight. “If you don’t do anything about rising rents, your promises on homelessness are ineffective. You might even call them hypocritical.”

Mahan declined to comment beyond the statement. The only other Santa Clara County official listed is Gilroy Mayor Marie Blankley, who did not immediately respond to a request for comment.

Perry said he had argued with Mahan personally about the matter.

“The mayor – and the real estate industry, for one – thinks we need to unleash the private market, but the private market doesn’t work,” Perry said. “If the only incentive to build housing is to raise rents, that does nothing to solve our affordable housing crisis.”
Eight mayors in the coalition come from Orange County. Leading Democratic politicians in the state have also spoken out against the measure.

“This initiative is a huge loophole that absolves a select few local governments of responsibility for affordable housing and opens the door to undoing every inch of progress we have made in housing over the past 20 years,” State Senator Toni Atkins said in a statement. “All I can say is: Don’t be fooled.”

Contact Brandon Pho at (email protected) or @brandonphooo on X, formerly known as Twitter.