Prop. 33 could bring relief to cost-burdened households, but is it fair to small landlords?

In the two decades Flor Castro has lived in Richmond, she’s seen many things change. One thing that has remained relatively stable is the $1,500 rent for the three-bedroom apartment she shares with her husband and two children, thanks to the city’s rent control laws.

“I’m very grateful to God for everything I have because there are other families that need not just one job, but two jobs,” Castro said in Spanish. “So, up until now, that’s not my situation, but I don’t know about the future.”

In 2016, Richmond became the first city in nearly 30 years to enact a new rent-control law in California. It was a long time coming, said Councilmember Gayle McLaughlin, noting that as early as 2005, council members had tried to make it happen. Finally, the proposal had enough support to put it to voters. 

“In 2016, we put it on the ballot, and 58% of Richmond voters supported it. I think it has made an enormous difference.” McLaughlin said.

Richmond residents  affirmed the decision in 2022, voting for a measure that lowered the amount rent could go up from 5.2% to 3%. 

Voters are being asked to weigh in on the question again, only this time, it’s on the statewide ballot. Proposition 33 would repeal a law that inhibits local governments from imposing rent control on single-family homes and on housing built since Feb. 1, 1995. That law also limits rent control to how much a landlord can increase rents. It does not give local governments authority to restrict what landlords can charge tenants when they move in.

Unexpected expenses

Prop. 33 would give cities and counties the ability to control rents for any housing type, as well as limit how much a landlord can charge when a tenant moves in. While it would not alter local rent control laws, it would enable cities and counties to change them.

For tenants living on tight budgets, the proposition could ease the pressure of rising living expenses, which threaten their ability to save enough money to cover unexpected costs. 

Castro recently had to deal with such a cost, when both her car and her husband’s broke down. With her early morning shifts as a kitchen worker and her husband’s job as a cook, the expense created a lot of stress for the family.

“These are not predictable expenses — they’re not like an electricity bill that comes regularly,” she said. “You don’t always anticipate these things, so you have to have savings. If you’re living paycheck to paycheck, it’s impossible to cover these kinds of costs.” 

Add to that, the deflation of their savings during the pandemic when they were forced to draw from it, and the cost of insulin that Castro’s husband, a diabetic, needs daily. Managing living costs can be a delicate balancing act for them and many others.. 

“We live cautiously because we don’t know what might happen next, especially with my husband’s health,” Castro said.

She considers herself lucky, though, because her rent is well below the average of $1,990 for a one-bedroom apartment in Richmond — $2,278 for a two-bedroom apartment, which is still smaller than the Castro family would need. 

Sara Cantor, chair of Richmond’s Rent Board, said if Prop. 33 passes, the city could apply rent control across the board.

“I see the rent control ordinance as encouraging fairness and justice in relationships between landlords and tenants,” she said.

But Prop. 33 isn’t fair to small landlords, said Barry Grant, who rents out a duplex in Richmond. He doesn’t like that the law lumps small landlords like him with those who operate apartment complexes. It’s already hard to keep up with the mortgage, taxes and maintenance, which take up a sizable portion of his earnings, he said. Prop. 33 would cut into those even more. 

“There has to be some distinction in how rent control is applied across small businesses, commercial businesses, and smaller, mom-and-mop landlords,” he said. 

Shawn Dunning, a City Council candidate in District 6, has taken up the cause of small landlords, saying Prop. 33 would push some to stop renting — reducing the number of rental units at a time when housing is in short supply. Proponents, he said, aren’t seeing the big picture. 

“They don't get it, and they think that anyone renting out a house is just some, you know, slum lord with deep pockets trying to take advantage of people, and that is just not the case,” he said.

Cantor has heard that argument but doesn't think sales of rental units would necessarily be a bad thing. “If people follow through on their threats to get out of the rental market if rent control were applied across the board, I think that another impact that that might have is increasing the amount of housing that is available for potential homeowners," she said.

Bay Area's high housing costs

Prop. 33 is coming to voters at a time when the Bay Area housing market is among the highest in the nation. The real estate app Zillow puts the average home price in Richmond at $625,000, which is about half of what it costs to buy a house in neighboring Berkeley. The high prices have locked many young people out of the market, forcing them to continue renting. 

Nearly half of the households in Richmond are renters, census data shows. 

Jim Becker, CEO and president of Richmond Community Foundation Connects, an organization advocating for systems that promote equity and justice, said the real solution lies in an overhaul of the housing market. He argues that treating homes like tradable assets drives up prices and exacerbates the affordability crisis.

"We have to take housing basically off the commodities market,” Becker said. “Until we do that, I think we’re going to still have these challenges.”

Dunning said disagreeing with Prop. 33 isn’t the same as being against protections for tenants. 

“The pro of rent control is to provide reasonable boundaries to prevent gouging,” he said. “I'm absolutely in support of protections to make sure housing is secure.” 

His opponent, incumbent Councilmember Claudia Jiménez, has made rent control and affordable housing a central part of her campaign platform. She was unavailable for an interview when Richmond Confidential reached out to her for comment.

The Richmond Rent Program, which came out of the 2016 vote, offers resources for both tenants and landlords, including monthly workshops on rent control, housing counseling and rental assistance programs. It includes a rent adjustment petition process, which allows tenants and landlords to request changes to rent based on specific conditions.

About 7,857 rental units are registered under the program. The rent control law restricts rent increases and eviction, promoting housing stability by giving tenants predictable housing expenses.

“Even if you're paying the Bay Area’s highly inflated rents, it's much easier to plan for the future, because your housing costs are more predictable," said Nicolas Traylor, the program’s executive director.

Castro understands that. Household costs affect every aspect of her daily life. A simple trip to the grocery story can upend her budget. And she’s often forced to put off a necessary purchase until the next pay period, keeping her from building her savings to handle that unexpected expense.

“We’re always thinking about what’s coming next and what will happen later and if we’ll have enough,” she said. “It’s bad because sometimes you don’t enjoy life. It’s a lot of pressure to live like this."

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