Updated 05/23/25
The Justice for Renters Act has become a hot-button issue for landlords across California as it heads to the November 2024 ballot. Marketed as a tenant protection initiative, the measure would upend existing California rent control laws—most notably the Costa-Hawkins Rental Housing Act. The proposal is gaining momentum among tenant advocacy groups, but landlords must understand what’s truly at stake.
If passed, the Justice for Renters Act would strip away essential protections for property owners, giving local governments the unrestricted ability to impose extreme rent control on virtually all types of housing. This isn’t just a policy change; it’s a fundamental shift in the balance between local control and private property rights.
Too Long Didn’t Read: The Justice for Renters Act is a 2024 California ballot initiative aimed at repealing Costa-Hawkins and expanding rent control to almost all types of rental housing. It allows local governments to impose extreme rent caps, including on new construction and single-family homes, and eliminates vacancy decontrol. For landlords, this means less flexibility, more regulation, and lower property values. This article explains the Act’s provisions, why it threatens landlords, and what you can do about it.
Table of Contents
- What Is the Justice for Renters Act?
- How the Measure Repeals the Costa-Hawkins Rental Housing Act
- What Properties Will Be Affected If It Passes?
- How Vacancy Decontrol Would Be Eliminated
- Can the Justice for Renters Act Be Amended?
- What This Means for California Landlords
- Why Local Rent Control May Drastically Expand
- Timeline and Voting Details
- Frequently Asked Questions
What Is the Justice for Renters Act?
The Justice for Renters Act is a statewide ballot initiative slated for a vote in November 2024. Its core purpose is to allow local governments complete authority to impose residential rent control measures—regardless of the age, type, or current exemption status of a rental property. Supporters of the initiative claim it will enhance tenant protections and combat rising housing costs. However, it would dismantle long-standing regulations that balance tenant rights with landlord protections.
Currently, the Costa-Hawkins Rental Housing Act prevents local jurisdictions from applying rent control to properties built after February 1, 1995, single-family homes, and condos. It also allows landlords to reset rents to market value once a tenant vacates—a policy known as vacancy decontrol. The Justice for Renters Act proposes to remove all of these limitations.
How the Measure Repeals the Costa-Hawkins Rental Housing Act
The Costa-Hawkins Act was enacted in 1995 to curb overly restrictive local rent control policies that discouraged property maintenance and new development. Repealing it would mark a drastic shift in California housing policy. If the Justice for Renters Act passes, cities and counties will be free to regulate rents on all housing types, including new developments and previously exempt properties.
This repeal would allow for regulations that restrict rent increases even on brand-new units, disincentivizing developers and investors from creating more housing stock. It would also affect small landlords who depend on their properties for retirement income, as they could face severe caps on rental income with no recourse to adjust for inflation or rising maintenance costs.
What Properties Will Be Affected If It Passes?
One of the most alarming aspects of the Justice for Renters Act is the breadth of its impact. Under the proposed law, virtually every rental property in California could be subject to local rent control ordinances. This includes single-family homes, condominiums, and newly constructed properties that are currently exempt under Costa-Hawkins.
Previously, landlords had some measure of predictability and legal protection for these asset classes. The removal of these exemptions would create regulatory chaos. Small landlords, in particular, may not have the financial resources to absorb reduced rental income or comply with costly new regulations.
How Vacancy Decontrol Would Be Eliminated
Vacancy decontrol allows landlords to reset the rent to market value when a tenant voluntarily vacates a unit. This policy has served as a financial safety net for property owners, enabling them to eventually recover from long-term, below-market leases.
The Justice for Renters Act would remove this provision entirely. Once a unit becomes subject to rent control, it would remain under that control indefinitely—even after tenant turnover. This drastically reduces the long-term value of rental property investments and discourages landlords from making improvements or upgrades.
Can the Justice for Renters Act Be Amended?
Unlike standard legislation, which can be revised by the State Legislature, the Justice for Renters Act would become part of California’s statutory framework as a voter-approved initiative. That means any changes to the law would require another statewide ballot measure.
This rigidity poses significant challenges. If economic conditions change or unintended consequences emerge, lawmakers would have no authority to make timely adjustments. For landlords, this creates an unstable legal environment where future flexibility is severely restricted.
What This Means for California Landlords
The Justice for Renters Act represents a major risk to the financial and operational stability of rental housing providers. Landlords could face drastic revenue reductions and rising compliance costs due to local rent boards empowered to set rules and impose fees without accountability.
Moreover, the loss of vacancy decontrol and the expansion of rent caps could lead to significant property devaluation. Small landlords, who often operate on thin margins, may find it difficult to continue providing rental housing. Some may choose to exit the market entirely, which would ironically reduce the overall supply of affordable housing.
Why Local Rent Control May Drastically Expand
If passed, the Act will hand over broad regulatory power to local governments. Many of these jurisdictions already face political pressure to adopt stricter tenant protections. Without state limitations, we can expect a patchwork of rent control laws, many of which will impose strict caps regardless of economic conditions.
Unelected rent boards could be authorized to determine allowable rent increases and even impose registration fees or inspection requirements. These measures, implemented without input from local voters, would burden landlords and reduce the appeal of investing in California real estate.
Timeline and Voting Details
The Justice for Renters Act has officially qualified for the November 2024 ballot. While it has yet to receive a proposition number, it is expected to attract significant attention as Election Day approaches. Landlords and housing providers must stay informed, engage with advocacy groups, and educate their tenants and neighbors about the potential consequences of the measure.
As seen in the defeats of Proposition 10 (2018) and Proposition 21 (2020), public awareness and unified opposition can influence the outcome. Voting “No” on this measure is critical to preserving a balanced approach to housing policy in California.
Frequently Asked Questions
What does the Justice for Renters Act do?
It repeals the Costa-Hawkins Act and allows local governments to impose rent control on nearly all housing types, including new construction and single-family homes.
How does the Justice for Renters Act affect landlords?
It removes vacancy decontrol, expands rent control, and limits a landlord’s ability to raise rents or sell their property at market value.
Is the Justice for Renters Act final if passed?
Yes. Once approved, it can only be changed by another ballot initiative.
Will rent control apply to new construction?
Yes. If passed, even properties built after 1995 could be subject to local rent control ordinances.
Can small landlords opt out?
No. There are no exemptions for small landlords under this proposal.
