Costa-Hawkins exemption
A category of rental unit that California's Costa-Hawkins Rental Housing Act (Cal. Civ. Code §§ 1954.50–1954.535, enacted 1995) exempts from local rent control: single-family homes, condominiums, and post-1995 units.
Also known as: Costa-Hawkins exempt, rent control exemption
Definition
The Costa-Hawkins Rental Housing Act (Cal. Civ. Code §§ 1954.50-1954.535) preempts local rent control ordinances for specific categories of residential property, creating statewide "exemptions" from municipal rent stabilization.
Exempt Property Types
Costa-Hawkins prohibits local rent control on:
- Single-family homes and condominiums (Cal. Civ. Code § 1954.52(a)(1))
- Units first occupied after February 1, 1995 (§ 1954.52(a)(2))
- Any unit when a tenant voluntarily vacates (vacancy decontrol under § 1954.53(a))
Legal Framework
Preemption scope: Local jurisdictions cannot impose rent ceilings, just cause requirements, or other rent control measures on exempt units. However, they retain authority over health, safety, and anti-discrimination enforcement.
Voluntary vacancy provision: Even controlled units become exempt upon tenant departure, allowing landlords to reset rents to market rates. Some jurisdictions with "vacancy control" ordinances enacted before Costa-Hawkins retain limited re-control authority.
Policy Context
Enacted amid 1990s housing affordability debates, Costa-Hawkins represented a legislative compromise between tenant advocates (who sought stronger rent control) and property interests (who sought complete preemption). The law's exemptions significantly reduced the inventory subject to rent control in California's major cities.
Recent legislative efforts (AB 1506, 2018; Proposition 21, 2020) have attempted to narrow Costa-Hawkins exemptions but have not succeeded. Current estimates suggest 60-80% of California rental units fall under one or more Costa-Hawkins exemptions.
Sources
Frequently asked questions
What is exempt from Costa-Hawkins exemption?
Costa-Hawkins prohibits local rent control on: Single-family homes and condominiums (Cal. Civ. Code § 1954.52(a)(1)) Units first occupied after February 1, 1995 (§ 1954.52(a)(2)) Any unit when a tenant voluntarily vacates (vacancy decontrol under § 1954.53(a))
What is the legal framework for Costa-Hawkins exemption?
Preemption scope: Local jurisdictions cannot impose rent ceilings, just cause requirements, or other rent control measures on exempt units. However, they retain authority over health, safety, and anti-discrimination enforcement. Voluntary vacancy provision: Even controlled units become exempt upon tenant departure, allowing landlords to reset rents to market rates. Some jurisdictions with "vacancy control" ordinances enacted before Costa-Hawkins retain limited re-control authority.
What is the policy rationale for Costa-Hawkins exemption?
Enacted amid 1990s housing affordability debates, Costa-Hawkins represented a legislative compromise between tenant advocates (who sought stronger rent control) and property interests (who sought complete preemption). The law's exemptions significantly reduced the inventory subject to rent control in California's major cities. Recent legislative efforts (AB 1506, 2018; Proposition 21, 2020) have attempted to narrow Costa-Hawkins exemptions but have not succeeded. Current estimates suggest 60-80% of California rental units fall under one or more Costa-Hawkins exemptions.
Sources
Cal. Civ. Code §§ 1954.50–1954.535, California Leginfo — ca-leginfo