REQUEST FOR CITY COUNCIL ACTION
SUBMITTED TO: Honorable Mayor and City Council Members
SUBMITTED BY: Eric G. Parra, Interim City Manager
VIA: Travis K. Hopkins, Assistant City Manager
PREPARED BY: Shannon Levin, Council Policy Analyst
Subject:
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Consider adoption of Resolution No. 2024-50 in Opposition to the Statewide Ballot Proposition 33, the Local Government Rent Control Expansion Act, as Recommended by the Intergovernmental Relations Committee (IRC)
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Statement of Issue:
On September 18, 2024, the Intergovernmental Relations Committee (IRC), comprised of Mayor Gracey Van Der Mark, Mayor Pro Tem Pat Burns, and Council Member Tony Strickland, discussed legislative items with relevance to Huntington Beach. Following discussion, the IRC chose to take a position on a statewide ballot proposition, which is presented to the City Council for consideration.
Financial Impact:
Not applicable.
Recommended Action:
recommendation
A) Adopt Resolution No. 2024-50, “A Resolution of the City Council of the City of Huntington Beach in Opposition to Proposition 33, the Local Government Rent Control Expansion Act,” which will set aside Resolution Nos. 4344 and 2024-23.
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Alternative Action(s):
Do not approve, and direct staff accordingly.
Analysis:
Proposition 33 - The Local Government Rent Control Expansion Act, which expands local governments’ authority to enact rent control on residential property is an Initiative Statute to be considered by the voters at the November 2024 election.
Current state law, known as the Costa-Hawkins Rental Housing Act of 1995, limits the use of rent control in California. Cities cannot set rent control on single-family homes or apartments built after 1995, providing landlords the freedom to set their own rental rates when a tenant moves. If Proposition 33 passes, it would eliminate State limitations for cities and counties to maintain, enact, or expand residential rent control ordinances, allowing rent control on any type of housing - including single-family homes and new apartments, and for new tenants.
According to the State’s Legislative Analyst’s Office, the repeal of Costa-Hawkins could reduce State and local revenues in the high tens of millions of dollars per year over time; and the largest effect would be on property taxes.
City of Huntington Beach Charter Section 803 asserts that the City will not enact or enforce rent control.
Section 803, Property Rights Protection Measure.
a) The City shall not enact or enforce any measure which mandates the price or other consideration payable to the owner in connection with the sale, lease, rent, exchange or other transfer by the owner of real property. Any such measure is hereby repealed.
b) The word "mandates" as used in subsection (a) includes any measure taken by ordinance, resolution, administrative regulation or other action of the City to establish, continue, implement or enforce any control or system of controls on the price or other terms on which real property in the City may be offered, sold, leased, rented, exchanged or otherwise transferred by its owner. The words "real property" as used in subsection (a) refer to any parcel of land or site, either improved or unimproved, on which a dwelling unit or residential accommodation is or may be situated for use as a home, residence or sleeping place.
Per the approved City Council Policy Manual, the City Council may take a position with respect to a statewide ballot proposition by setting aside Resolution Nos. 4344 and 2024-23. The Intergovernmental Relations Committee recommends setting aside these Resolutions and adopting Resolution No. 2024-50 opposing Proposition 33.
Environmental Status:
This action is not subject to the California Environmental Quality Act (CEQA) pursuant to Sections 15060(c)(2) (the activity will not result in a direct or reasonably foreseeable indirect physical change in the environment) and 15060(c)(3) (the activity is not a project as defined in Section 15378) of the CEQA Guidelines, California Code of Regulations, Title 14, Chapter 3, because it has no potential for resulting in physical change to the environment, directly or indirectly.
Strategic Plan Goal:
Non Applicable - Administrative Item
Attachment(s):
1. Resolution No. 2024-50
2. Resolution No. 4344
3. Resolution No. 2024-23