Public Policy Analysis: San Fran Rent Control

Public Policy Analysis

San Francisco Rent Control

Central Washington University

San Francisco Rent Control

Policy Description

One of the most influential public policies a government can enact is a price control policy. Rent control is one of those government-mandated price controls that place a maximum price ordinance, also known as a “rent ceiling,” on what landlords are allowed to charge tenants. In order for the imposed rent control to have an effect, the cost of rent must be set at a level below that which would otherwise have prevailed, thus making an effective rent ceiling. Rent controls are used around the world, but they were not always necessary. In fact, rents didn’t become “controlled” in the United States until World War I. Between 1919 and 1924, a few cities and states began to adopt rent and eviction control laws, but modern rent controls weren’t adopted until the housing shortages caused by World War II. During this time, current United States President Richard Nixon enacted his 1971 wage and price controls. Nixon’s laws have been reintroduced in cities with large tenant populations like: New York City, San Francisco, Los Angeles, Washington D.C. and Oakland. The city with the longest history of rent controls is New York City, however. Since 1943, 51 communities in the state of New York have participated in the rent control program. Price controls in New York led to a lack of “adequate supply of decent…housing,” which led to the Rent Stabilization Law of 1969, aimed to increase the supply of housing up for rent (Erwert, 2015).

California is another state with extensive rent control history dating back to Proposition 13 and beside New York City one could argue that San Francisco has the largest rent control policies in the nation. San Francisco established the Rent Ordinance of 1979, under which rentals issued a certificate of occupancy (i.e., the building is up to code and fit for habitation) before June 13, 1979 fall into the...