What is AB-1506:

An act to repeal Chapter 2.7 (commencing with Section 1954.50) of Title 5 of Part 4 of Division 3 of the Civil Code, relating to tenancy: http://leginfo.legislature.ca.gov/faces/billTextClient.xhtml?bill_id=201720180AB1506

AB 1506, as introduced, Bloom. Residential rent control: Costa-Hawkins Rental Housing Act. The Costa-Hawkins Rental Housing Act prescribes statewide limits on the application of local rent control with regard to certain properties.

This bill would repeal that act.

What is Costa-Harkins:


  • basic rules: (1) housing constructed after 1995 must be exempt from local rent controls, (2) new housing that was already exempt from a local rent control law in place before February 1, 1995, must remain exempt, (3) single family homes and other units like condominiums that are separate from the title to any other dwelling units must be exempt from local rent controls, and (4) rental property owners must have the ability to establish their own rental rates when dwelling units change tenancy.


  • The intention of Costa Hawkins: State Sen. Jim Costa (D-Fresno), who led the Senate push to repeal such ordinances, said the legislation represented “an 11-year effort to try to end extreme forms of rent control in California.” Saying the tight controls had led to a decrease in units available to low- and middle-income renters, Costa said the new rules, if enacted, would “create a positive business climate for the construction of rental housing throughout this state.” http://articles.latimes.com/1995-07-25/news/mn-27574_1_rent-control-feature

Damage of AB-1506

  • DEVASTATE HOUSING in California!
  • Costa- Hawkins provides essential protection to independent rental owners & helped ensure Mom and Pop landlords can continue to operate housing!
  • AB 1506 will DETER Investment in rental housing at exactly the wrong time. It will LOWER investment in housing and will place tens of thousands of future construction jobs in jeopardy. Workers in the housing industry need to have JOBS to help SUPPORT many families.
  • It will lead to even LESS SUPPLY of housing! And increase HOMELESSNESS, including Children. Owners who plan to collaborate with new initiatives for supportive housing will LOSE their interest in helping to solve homeless issues and will become less likely to participate in local government initiatives.
  • When the property taxes, license fees, utilities & maintenance of rental properties keep going up, AB-1506 will put small property owners OUT of Business. And will deprive many senior citizens’ main source of retirement income.
  • When a tenant voluntarily moves out at no fault of Owners, housing should be allowed to adjust to market rent after years of subsidizing prior tenants. Otherwise, Landlords will lose money until bankrupt if maintenance fee (10% annual increase) oversees rent (2% annual increase)
  • Owners can always sell houses to invest in high yield % Annuities or Tax Free bonds or Insurance index products if real properties don’t give comparable returns.
  • We need MORE housing! AB-1506 will put developers out of business!!
  • Reckless bill to repeal limits on rent-control will make housing crisis worse: http://www.dailynews.com/government-and-politics/20170222/reckless-bill-to-repeal-limits-on-rent-control-will-make-housing-crisis-worse-susan-shelley
  • From a landlord: “Costa-Hawkins act passed Bc of 5 cities’ original rent ordinances prohibited any rent decontrol, which lawmaker agreed was way too restrictive . Santa Monica, Berkeley & E. Palo Alto were 3 of those 5 cities. I still remember the Vacancy de-control passed. Without de-control, my berkeley apartments would still be renting @$500/month. Now it’s renting $1,600 (studio)- in 15 years. Berkeley just passed the law to raise the license fee. I would be paying $7,000/yr more next year”

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