Costa-Hawkins Rental Housing Act — California

The Costa-Hawkins Rental Housing Act (California Civil Code §§ 1954.50–1954.55), enacted in 1995, is the state law that sets the outer limits of local rent control. It does three big things: it exempts single-family homes and condominiums from local rent control, it exempts construction newer than February 1, 1995, and it requires vacancy decontrol — allowing an owner to reset rent to market when a unit voluntarily turns over.

Costa-Hawkins restricts what cities can do; it does not, by itself, cap rents. It works alongside the statewide AB 1482 rent cap, which still applies to many units Costa-Hawkins shields from local control. Whether a given unit is exempt depends on its title, build date and ownership — exactly the kind of question GoCodebook answers for a specific address.

Two categories are shielded from local rent control. First, dwellings with separately alienable title — primarily single-family homes and condominiums — are exempt regardless of age. Second, any unit with a certificate of occupancy issued after February 1, 1995 is exempt, which is why local ordinances generally apply only to older buildings.

These exemptions concern local ordinances. A single-family home or condo exempt from a city's rent board can still fall under the statewide rent cap (§ 1947.12) unless it also meets AB 1482's own exemption (not owned by a corporation or REIT, with proper written notice).

The most consequential rule is vacancy decontrol. Costa-Hawkins ended "vacancy control," so a city cannot force a landlord to keep the same restricted rent after a tenant voluntarily moves out. The owner may set the initial rent for the new tenancy at market rate; the local cap then applies going forward to that new tenancy.

Vacancy decontrol does not apply when the tenant is forced out — for example, after a no-fault termination or a withdrawal under the Ellis Act, where re-rental and re-control restrictions can apply. Because the facts drive the result, GoCodebook checks the unit and the city before you act.

Costa-Hawkins has been a repeated repeal target. Proposition 21 (2020) and Proposition 33 (2024) both asked California voters to repeal it and let cities adopt broader rent control, including on single-family homes and newer units. Both measures failed, so Costa-Hawkins remains in full effect.

That means the exemptions and vacancy-decontrol rules described here are current law. The interaction with AB 1482 and local ordinances is fact-specific, which is where a cited, plain-English answer helps before raising rent or signing a lease.