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partment industry leaders are facing a daunting task in defeating Proposition 33, which would allow local municipalities to set their own rent control regulations. To have any chance of success, they'll need to spend around $150 million, but with only about $66 million raised so far, hitting that goal seems unlikely. California Apartment Association CEO Tom Bannon estimates that $120-125 million is a more realistic target.

    Proposition 33 would repeal the 1995 Costa-Hawkins Rental Housing Act, which exempts single-family homes and newer rental units from local rent control laws. Supporters of Prop. 33 have spent around $38.5 million, mostly from the AIDS Healthcare Foundation (AHF), while opponents have raised about $66 million, with the California Apartment Association contributing $34.45 million.

    Industry leaders warn that if Prop. 33 passes, it would lead to disastrous consequences for renters and developers, further disincentivizing multifamily production in the state. The National Multifamily Housing Council's Jim Lapides said rent control is a "terrible idea" that would cost millions to implement and destroy the market.

    San Francisco's Land Use Committee has already proposed legislation to put newer buildings under rent control if Prop. 33 passes, and other cities are likely to follow suit. Recent polling shows that only 3% of voters remain undecided, with 51% in favor and 46% opposed.

    The industry is also supporting Proposition 34, which would require the AHF to spend 98% of its revenues on direct patient care, cutting off funding for future attempts to undo Costa Hawkins. The California Apartment Association has donated nearly $30 million to Prop. 34, with about $25 million spent so far. Industry leaders are urging owners to contribute $250 per unit owned in California to support both campaigns.