Several news reports on Prop 21 suggest that this year’s version of the measure that was overwhelmingly defeated by California voters two years ago has been “tweaked” to eliminate rent control on single-family homes.
That’s what proponents are saying. One problem: it is not true.
According to the language of the initiative, the exemption only applies if the home is in the name of a “natural person.”
That excludes any single-family home owned as a partnership, family trust or otherwise.
All told, there are 2,157,436 single family homes are held in trust in California (out of about 7 million total) or roughly 31 percent.
In addition, if you own three or more homes, you also would be subject to the provisions of the initiative – no matter how they hold the title.
Both provisions are different from Assembly Bill 1482. That sweeping rent law, signed by Governor Newsom, only applies to homes owned by large corporate owners.
So what’s the bottom line here? Millions of California homeowners would be affected by Prop 21, reducing the value of their property. That, experts say, would likely lead to the removal of many of these properties from the rental market, making California’s housing crisis even worse as we weather COVID19.