Local rent control and inclusionary zoning.
The potential impacts of SB821 are significant as it could lead both to an increase in housing options and affordability in some areas, while also possibly imposing costs on developers and impacting the housing market dynamics. With the power to regulate rent, local governments may better address housing crises in their regions, especially in areas experiencing rapid gentrification where low-income residents are at risk of displacement. However, this flexibility also raises concerns about the balance between local control and potential negative effects on real estate development.
Senate Bill 821 aims to repeal existing legislation that restricts local political subdivisions from regulating rental prices for residential properties and imposing inclusionary zoning requirements. Inclusionary zoning typically mandates that a percentage of new residential units be affordable for low and moderate-income families. By eliminating these prohibitions, SB821 allows cities and counties to create their own local rent control measures and inclusionary zoning policies, which could lead to a more tailored approach to housing affordability issues at the local level.
There are notable points of contention surrounding SB821. Proponents argue that empowering local governments to enact rent control and inclusionary zoning can enhance housing stability and create more affordable housing opportunities. Opponents, however, may express concerns that such measures could deter real estate investment, lead to reduced housing supply, or create complex regulatory environments. The discussions surrounding this bill highlight the ongoing tension between the need for affordable housing and the interests of the real estate development community.