05/05/2024

LAO: Prop 10 May Cost the State, Communities Millions While Freezing Housing Construction

Anyone concerned about the future of the state and local budgets should pay particular attention to what the state’s non-partisan legislative analyst had to say about Proposition 10, the ballot measure that repeals the Costa-Hawkins Rental Housing Act, including protections for tenants and single-family home owners.

The Legislative Analysts Office (LA) noted Prop 10 could cost local governments up to “tens of millions of dollars per year” in new costs and the state could lose up to “hundreds of millions of dollars per year” in revenues.

In the analysis, the LAO also noted that the value of rental housing would decline and that rental units also would likely be sold and no longer be available for rentals.

This, say experts, would work California’s affordable housing crisis even worse.

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