California’s Rent Control Initiative Goes Down in Flames
California voters roundly rejected rent control for the third time in six years tonight.
With 51 percent of the vote reported, Proposition 33—which would have repealed all state-level limitations on local rent control policies—is capturing the support of just 38 percent of voters. The New York Times is declaring the initiative done and dusted.
This is the third failed ballot initiative sponsored by the AIDS Healthcare Foundation (AHF) that would have loosened or repealed California’s state-level limits on rent control. Prop. 33 could also be the AHF’s last ballot initiative.
That’s thanks to the apparent (narrow, but not yet confirmed) victory for Proposition 34, which would effectively prevent AHF from spending money on political activism.
Prop. 34 requires beneficiaries of federal discount prescription drug programs to spend 98 percent of their revenue on direct patient care.
AHF benefits from just such a federal program that requires pharmaceutical companies to sell their drugs at discounted rates to hospitals and other organizations that primarily serve low-income patients. Those discount drug–buying organizations are then allowed to bill federal insurance programs like Medicare and Medicaid the standard reimbursement rates for those drugs.
The AHF has benefited handsomely from this program through its network of discount pharmacies serving AIDS patients. It has spent the proceeds on the heterodox pet causes of AHF President Michael Weinstein, which includes supporting rent control policies.
In 2018, 2020, and 2024, the AHF spent tens of millions of dollars running ballot initiatives that would have repealed state-level rent control limitations and given California municipalities a freer hand in regulating rents.
Prop. 33 was the organization’s most sweeping initiative of the trio. Its brief text says that “the state may not limit
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