Van Nuys, Calif. – Today, California lawmakers took action on Assembly Bill 1506 (Bloom), which would have repealed the Costa-Hawkins Rental Housing Act. The Valley Industry & Commerce Association (VICA) has strongly opposed this bill, which would have allowed rent control to be imposed on new developments. VICA President Stuart Waldman said:
“Today’s action by the California Assembly Housing and Community Development Committee was a smart decision and demonstrates that rent control is not a solution to the California housing crisis.
“We cannot continue to discourage housing development at a time when we need more housing. The housing shortage is suffocating our state’s economy.
“Residents, especially those who are just entering the workforce, cannot find a place to live because rent control has been exploited and resulted in an extremely low vacancy rate, especially here in the San Fernando Valley.”
Costa-Hawkins provides important limitations by exempting new construction built after 1995 from local rent control laws. This bill would have eliminated this exemption and allowed rent control to be placed on new development, which would have discouraged the development of multi-family housing.
The mission of the Valley Industry & Commerce Association (VICA) is to enhance the economic vitality of the greater San Fernando Valley region by advocating for a better business climate and quality of life. Visit www.vica.com for more information.