December 9, 2019
Rent control activists have again submitted signatures to qualify a new initiative for California’s 2020 ballot. The failed 2018 initiative prompted a legislative solution brokered by state lawmakers and the Governor capping rent increases without seemingly derailing apartment investors and owners operating in the state.
That collaborative solution, as Connect Media reported following a Marcus & Millichap rapid response webinar in October, made substantial strides addressing the issue from a “common ground” approach with California’s multifamily industry representatives. M&M’s Research Director John Chang said at the time that from the fundamental revenue and income producing aspect, the new law generally won’t have a “huge effect on the majority of assets.”
That could change dramatically next year since California’s voter initiative is a “plenary” power that transcends legislative powers and could erase the brokered solution. Expect industry leaders to analyze potential impacts as California’s Secretary of State verifies signatures.
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