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More than half of Chico renters are rent-burdened, voters will decide if Prop 33 can help

A “for rent” sign posted on a lawn in Chico, Calif. on Feb. 1, 2024.
Erik Adams
/
NSPR
A “for rent” sign posted on a lawn in Chico, Calif. on Feb. 1, 2024.

Chico ranks second in the state for the highest percentage of cost-burdened households.

A 2023 housing study from Harvard University calculated those figures finding that about 60% of renters in Chico spend more than a third of their income on rent and utilities, making them cost-burdened.

A concept like rent control might sound appealing to those struggling to pay high costs for housing. One statewide proposition on the upcoming November ballot could help pave a path toward for cities to enact rent control.

A “yes” vote on Proposition 33 would allow California to repeal an act that restricts rent control ordinances.

The Costa-Hawkins Rental Housing Act of 1995 prohibits municipalities from allowing rent control on buildings constructed after 1995. It also influences what rules cities can impose on single family homes that are being rented out.

Councilmember Addison Winslow said if Prop 33 passes it could have a big effect on the rental landscape in Chico.

“Costa Hawkins, this law that would be repealed, prevents cities from enacting any kind of regulation on single family home rentals … A lot of people here rent single family homes,” he said.

David Welch of Butte County’s Democratic Party supports the proposition.

“It gives each locality the opportunity to do what they want to do … as opposed to being straightjacketed into the limits that they have right now,” Welch said.

David Welch stands in the front room of the Butte County Democratic Party headquarters on Oct. 8, 2024 in Chico, Calif.
Erik Adams
/
NSPR
David Welch stands in the front room of the Butte County Democratic Party headquarters on Oct. 8, 2024 in Chico, Calif.

Welch thinks much of the advertising against Prop 33 implies rent control would automatically be implemented with a “yes” vote.

“It doesn't,” Welch said. “It merely opens up the possibility of doing that on a local basis. And I think that's a very important distinction to make because what would work in one city might not be a good solution for another city.”

However, some aren’t thrilled about opening up that possibility.

Matt Depa of North Valley Property Owners Association said he’s worried that if Prop 33 passes, it will not only make things harder for property owners, but for tenants, too.

“For the renters, if building repair needs to get done and a housing provider can barely make ends meet because of the high insurance cost and the higher water, sewer and trash costs, something's got to give,” Depa said.

Depa also said the lower property values that could ensue if rent control is imposed would reduce the amount of the city's property tax dollars for different services.

“We will lose programs that we already fund, or we'll lose money for our roads that we currently fund with our property taxes,” Depa said. “Or we'll lose money for senior programs. We'll lose money for education programs.”

He said what’s needed is more housing, and he’d like to see the city expedite housing construction.

“We need to take away the red tape, take away the hand tying that makes it so difficult to get something through,” Depa said. “When there's more options out there for more housing, more apartments, more ADUs; rent numbers will come back down. It's been shown.

North Valley Property Owners Association Board of Directors President, Matt Depa, stands in front of his predecessors at his Chico office on Oct. 9, 2024.
Erik Adams
/
NSPR
North Valley Property Owners Association Board of Directors President, Matt Depa, stands in front of his predecessors at his Chico office on Oct. 9, 2024.

According to the California Legislative Analyst’s Office, if Prop 33 passes, expansion of rent control is likely in some communities. This means some people could have cheaper rent. The analysis also says some landlords might sell their homes, reducing the overall number of rentals. Additionally, there could be a reduction in local property taxes — estimated at less than one-half of 1 percent of all property tax revenue — that would mainly affect schools.

Chico’s median renter income, according to the Harvard study, is $42,700 per year, while the average monthly rent costs are about $1,350. More than 30,000 households are either cost-burdened or severely cost-burdened, meaning they spend more than half of their income on housing costs.

Back at the Chico Democratic Party Headquarters, Welch said he believes there’s some balance to be found with the issue and some degree of rent stabilization would be a good thing.

“Not necessarily the kind of tight rent control that has been done in some places …” Welch said. “Rent control, if it's done badly, can create problems. But rent control can be done right and can help renters without necessarily damaging the production of housing stock and making it undesirable to be a landlord either.”

Yes or no? 

A “yes” vote would allow local governments to set their own rent control laws with fewer restrictions if they want.

A “no” vote would keep current restrictions on rent control in place, including to continue disallowing rent control on single family homes that are rented and on buildings built after 1995.

More information

Erik began his role as NSPR's Butte County government reporter in September of 2023 as part of UC Berkeley's California Local News Fellowship. He received his bachelor's degree in Journalism from Cal State LA earlier that year.
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