San Jose mayor opposes rent control expansion measure

San Jose Mayor Matt Mahan has come out against a November ballot initiative that could vastly expand rent control to cover any type of housing in California.

State law has for decades barred cities from limiting rent hikes on single-family homes and apartments built after 1995. Proposition 33 would repeal that law and also let cities control rent prices for new tenants. The idea has Mahan and a newfound coalition of 22 other mayors across the state mounting fierce opposition.

As time goes on and new homes get built, tenant advocates warn rent control will apply to fewer buildings. Opponents argue that repealing the Costa–Hawkins Rental Housing Act of 1995 would let cities off the hook from building more affordable housing.

“Too many families are struggling because of the high cost of housing,” Mahan said in a statement from the mayoral coalition. “As mayor, I am focused on ensuring San Jose builds new housing downtown and near fast and reliable public transit. Prop 33 would make it harder for San Jose, and the state of California, to meet our affordable housing goals and help families wrestling with skyrocketing housing costs.”

Proposition 33 is the latest iteration of a ballot measure voters have blocked twice before, in 2018 and 2020. Opponents say property values will decline and disincentivize new housing development, raising prices for housing that already exists.

Proponents, meanwhile, argue unreasonable rent hikes put too many residents close to homelessness — and that the measure hands the legislative reins back to local elected leaders.

One proponent of the measure is South Bay Community Land Trust Board Vice President Sandy Perry.

“For someone who claims to be so concerned with homelessness, Mayor Mahan taking a stand against Prop. 33 is just wrong,” Perry told San José Spotlight. “If you’re not going to do something about increasing rents, your promises around homelessness are not effective. You could even call them hypocritical.”

Mahan declined to comment beyond the statement. The only other listed official from Santa Clara County is Gilroy Mayor Marie Blankley, who did not immediately respond to a request for comment.

Perry said he’s argued with Mahan personally over this issue.

“The mayor puts this forward — certainly the real estate industry puts this forward — that we need to unleash the private market, but the private market doesn’t work,” Perry said. “If the only incentive for housing development is to increase rents, that does nothing to solve our affordable housing crisis.”
Eight mayors in the coalition come from Orange County. State Democratic leaders have also signed on against the measure.

“This initiative is one giant loophole that lets some select local governments off the hook for affordable housing and opens the door to erase every inch of progress we’ve made on housing over the last 20 years,” state Sen. Toni Atkins said in a statement. “All I can say is don’t be fooled.”

Contact Brandon Pho at [email protected] or @brandonphooo on X, formerly known as Twitter.