NOVEMBER 2024 VOTER GUIDE
NO ON 33, YES 34
Rent Control + Nonprofit Political Spending
ENDORSE-O-METER SAYS: NO ON 33, STRONG YES ON 34
Proposition 33 is a third attempt by Michael Weinstein, head of the LA-based AIDS Healthcare Foundation, to repeal statewide rent control restrictions and allow cities to impose rent control more widely and comprehensively. While rent control is often a well-meaning attempt to make housing more affordable, this particular avenue is widely understood to be nothing more than a bizarre attempt by one man to misuse funds earmarked for fighting HIV/AIDS for a pet political project—which, by the way, has the discrete possibility of making it even harder to build housing. Proposition 34 is a competing organization’s bid to stop Weinstein from using his foundation’s funds for this type of thing. We’re voting no on Proposition 33 and yes on Proposition 34 because these ballot-box fights are a waste of voters’ time and money and erode confidence in government’s efficacy.
The Context
Prop 33 would repeal rent control restrictions enacted by the Costa-Hawkins Act of 1995, thereby allowing California cities to increase the instances of rent control if they’d like to. Rent control can be good for some tenants individually, most especially and obviously low-income residents. But on a macro scale, rent control can suffocate the housing market by reducing the availability of housing, which drives up costs overall.
If this measure passes and cities have more freedom, that could help more low-income residents. But the way it’s written, it could also allow a city to impose a law that states that all new housing must be subject to rent control, making building new housing financially infeasible. The tradeoff between affordable units in a new housing development and the cost to build that housing development is already a major contributing factor to our housing crisis. That’s why this measure has been described as a “Trojan horse” by two of the state’s largest construction unions, the United Brotherhood of Carpenters and Norcal Carpenters Union, and we have to say we agree.
Enter Proposition 34, which would limit how certain healthcare providers spend revenues from a federal prescription drug program. Funded by the California Apartment Association (CAA), this measure narrowly targets one organization: the AIDS Healthcare Foundation. The head of that organization, Michael Weinstein, has placed a rent control measure on the ballot three times now, and has promised to keep doing so until the measure passes. Weinstein has spent upwards of $100 million on his previous rent control campaigns, even though voters have made it clear before that this isn't even a priority for them. They voted similar measures—also sponsored by Weinstein—down in 2018 and 2020.
Weinstein’s foray into state politics has drawn criticism that it has strayed from its mission of helping those living with HIV or AIDS, but the CAA has a particular bone to pick with him because his measures are politically opposed to their interests. Regardless of the drama between them, we’d like to see Prop 34 pass and put a stop to this nonsense.
The Money
Weinstein’s AIDS Healthcare Foundation has contributed more than $21.4 million in support. Former State Senator and current Los Angeles City Councilmember Kevin de León has formed a committee in support of Propositions 3, 32, and 33. His $600,000 contribution is included in all three.
The opposition is backed by real estate investors, realtors and property managers including investor Michael K. Hayde with $1.9 million. The California Apartment Association has contributed $12.2 million in opposition. One of the committees opposing this measure, the Homeownership for Families committee, is also opposing Proposition 5, so contributions are shown in both. It is sponsored by the California Assn. of Realtors, which has contributed $22 million.
Additional Details
A little more about the rent control standards that Prop 33 would repeal: currently, state law limits rent increases for tenants in apartments and corporate-owned single-family homes that are older than 15 years. Landlords cannot increase rent in rent controlled units more than 5 percent plus inflation, with a maximum increase of 10 percent. The law also generally prohibits local governments from putting rent control on single-family homes, as well as apartments built after February 1, 1995. In some cases, like the city of Los Angeles, that cut-off date is even earlier. Lastly, the current law allows property owners to charge whatever they want when a unit becomes vacant. Once a new tenant moves in, the limitations take effect.
Support & Opposition
Support for Prop 33 comes from Weinstein and the AIDS Healthcare Foundation, along with former State Senator and current LA city councilman Kevin de León, who was caught on video getting into a fight with an activist and also recorded making racist remarks about a fellow councilman’s son.
Local players like Supervisor Matt Dorsey and California YIMBY have pointed out the problems with this measure. The California Apartment Association is organizing a campaign against it, and California State Legislature members Senator Toni Atkins (D-San Diego) and Assemblymember Buffy Wicks (D-Oakland) oppose it too, saying it is inherently anti-housing.
Prop 34 is sponsored by the California Apartment Association as well as outside groups like Consumer Watchdog and the National Organization for Women.
Paid for by TogetherSF Action. Not authorized by any candidate or a committee controlled by a candidate. Financial disclosures are available at sfethics.org.